Top 3 Business Law Changes

Top 3 Business Law Changes in Florida: Compliance for Tampa Bay Companies

As of October 1, 2025, a new set of Florida statutes will take effect, significantly impacting business operations, commercial property, litigation strategies, and compliance obligations. Tampa Bay companies, landlords, tenants, and litigation-risk managers should pay attention. Below are the top three changes you need to know and how they may impact your business under Florida commercial lease law and broader business-law dynamics.

1. Florida’s Business Rent Tax is Gone: The October 1, 2025, Repeal (HB 7031)

The elimination of Florida’s business rent tax represents the most significant financial relief for commercial tenants in decades. Beginning October 1, 2025, businesses leasing office, retail, warehouse, or other commercial space will no longer be required to pay sales tax on rent.

What the law changes

Effective October 1, 2025, the 2% state sales tax and any applicable local discretionary sales surtax (typically ranging from 0.5% to 1.5%) on commercial leases are fully repealed under House Bill 7031, signed by Governor DeSantis on June 30, 2025.

This repeal eliminates Section 212.031, Florida Statutes, which had made Florida the only state in the nation to impose a statewide tax on commercial rent.

The repeal applies to occupancy periods beginning on or after October 1, 2025. Sales tax remains due on rent for periods prior to October 1, 2025, even if payment occurs after that date.

Why it matters: Massive savings and immediate compliance obligations

This change is expected to save commercial tenants approximately $2.5 billion annually statewide. For individual businesses, the impact is substantial and immediate.

Example: A Tampa business leasing 10,000 square feet of office space at $20 per square foot annually ($16,667 monthly rent) previously paid approximately $917 per month in combined state and local sales tax. Beginning October 1, 2025, that business saves over $11,000 annually.

However, the repeal creates urgent compliance and contractual issues:

For Tenants:

• Verify that landlords adjust invoices correctly beginning October 1, 2025
• Review lease language to confirm whether rent was negotiated “plus tax” or “including tax”
• Ensure automatic payment systems are updated to exclude the former tax rate
• Confirm that any advance payments for post-October periods do not include sales tax

For Landlords:

• Update billing, accounting, and reporting systems to remove sales tax from rent invoices
• For leases spanning taxable and non-taxable periods, clearly separate rent applicable before and after the repeal date
• File “zero-return” filings if you maintain an active sales tax account but no longer collect rent tax
• Maintain accurate records of payment dates and effective periods to avoid audit issues

Action items for Tampa Bay commercial clients

Audit all active commercial leases for tax allocation clauses such as “Tenant shall pay all sales or use taxes imposed on rent.” Determine whether these clauses require amendment or whether rent amounts should be adjusted.

Amend lease language to expressly reference the repeal and specify that no rent tax applies under Section 212.031, Florida Statutes, for occupancy periods on or after October 1, 2025.

Address transitional payments: Rent paid in advance for periods before October 1 remains taxable, even if the payment is made after that date. Late payments for pre-October rent must include the tax due.

Evaluate budgets and lease negotiations: Tenants can reallocate significant savings toward expansion, hiring, or capital improvements. Landlords may use the tax elimination as a competitive advantage in marketing properties without reducing base rent.

Resolve potential disputes early: If your lease language is ambiguous about whether rent was negotiated inclusive of tax, consult counsel now to avoid litigation over who benefits from the repeal.

2. Service of Process Overhaul: Clarifying the “Glitch Bill” and Registered Agent Hours (HB 157)

The so-called “Glitch Bill” refines Florida’s prior amendments to service of process statutes and clarifies the requirements for and procedures of valid service for business entities.

What the law changes

HB 157, a companion to SB 576, clarifies statutory ambiguities that arose after significant changes in 2022 to Chapter 48, Florida Statutes, which cover service of process on individuals, business entities, nonresidents, and substituted service.

The law was signed by the Governor and became effective on April 29, 2025. However, the substantive amendments regarding how service of process must be performed apply to all service made or effectuated on or after October 1, 2025.

The law provides a safe harbor for services executed between January 2, 2023, and October 1, 2025, to avoid invalidating older services.

Registered agents for business entities must now have designated offices open from at least 10 a.m.–12 p.m. and 2 p.m.–4 p.m., weekdays (which lengthens the hours during which service may be made).

Service of process on domestic corporations, LLCs, registered foreign entities, dissolved entities in receivership, and nonresident parties is clarified: a receiver may be served in matters of receivership; substituted service to the Florida Secretary of State must be issued “in the name of the party to be served” and cannot name the Secretary of State as a party.

Why it matters for business law, litigation, and commercial leases

From the perspective of business operators in Tampa Bay:

If your business enters into a commercial lease, vendor contract, partnership, or other commercial relationship, the process of serving lawsuits, regulatory enforcement, or landlord-tenant litigation may be affected by these changes.

Landlords, tenants, or developers in commercial lease law contexts must ensure that their counterparties are properly served under the new rules in the event of litigation; failure to follow the clarified statute may result in challenges to service, delays, or a risk of default judgment.

For example, a tenant sued by a landlord over a lease dispute must verify that the landlord properly effected service — if not, the tenant may have grounds to challenge a default or similar action. Conversely, landlords must ensure their service protocols comply to avoid wasted litigation costs.

Commercial lease documents may benefit from updated service-of-process provisions (e.g., specifying a designated agent, address for service, and confirming that a business entity’s registered agent meets the new hours requirements) to reduce exposure to defective service arguments.

Action steps for Tampa Bay commercial clients

Review your corporate structure, registered agent information, and service of process protocols. Ensure compliance with the new requirements before October 1, 2025, when the substantive amendments take effect.

For commercial leases, include clear language on whom notices and service for litigation, arbitration, or termination may be sent. Confirm the business entity’s registered agent meets the required hours.

For businesses in receivership, dissolution, or undergoing restructuring: evaluate how service of process may be impacted by the new law and plan legal strategy accordingly.

Consult a business-law attorney to audit older service events (particularly those between Jan 2023-Oct 2025 that may benefit from the safe harbor provision) and confirm that any pending litigation has valid service to avoid future procedural attack.

3. New Flood Disclosure Mandates: What Commercial Landlords in Mixed-Use Properties Must Know (SB 948)

A new law requires landlords of residential properties to provide specific flood-risk disclosures to prospective tenants, effective October 1, 2025. While the law explicitly applies to residential leases, it signals a broader shift in Florida real estate law with implications for commercial landlords and their due diligence practices.

What the law mandates

Under Section 83.512, Florida Statutes (created by SB 948), a landlord must provide a separate “flood disclosure” document to a prospective tenant of residential real property for a lease term of one year or longer, at or before the execution of the rental agreement.

The disclosure must include whether the landlord has knowledge of any flooding that has damaged the property during the landlord’s ownership, whether the landlord has filed a claim with an insurance provider for flood damage (including NFIP), and whether the landlord has received assistance (federal, state, or local) for flood damage.

In the event the landlord fails to disclose this information truthfully and the tenant suffers a “substantial loss or damage” (defined as cost of repair or replacement of personal property equal to 50% or more of its market value), the tenant may terminate the lease by giving written notice and surrendering possession. The landlord must refund amounts paid in advance for any period after termination.

The law is effective October 1, 2025.

Why it matters: Precedent for transparency and heightened disclosure standards

Although SB 948 explicitly addresses residential real property and does not directly apply to commercial leases, the law establishes an important precedent for non-disclosed risk in Florida real estate.

Legislative Signal: The statute signals a legislative priority on transparency and disclosure of known risks that could reasonably affect a tenant’s decision to lease. While no parallel statute yet exists for commercial leases, this heightened disclosure standard may influence future case law, regulatory expectations, or new statutes addressing environmental, structural, or hazard-related risks in commercial contexts.

Practical Implications for Commercial Landlords:

• Landlords of mixed-use properties (retail + residential, office buildings with residential components) must ensure compliance with SB 948 for residential portions and should consider whether similar voluntary disclosures would reduce litigation risk in commercial lease negotiations.
• Commercial lease drafting and due diligence should now treat all known risks — flooding, environmental contamination, structural defects, prior insurance claims — with heightened documentation, even absent a direct statutory mandate.
• In Tampa Bay, where flooding, hurricane risk, and sea-level rise are material concerns, failure to disclose known flood history in a commercial lease could lead to claims of misrepresentation, breach of duty, or material non-disclosure if a tenant suffers loss.

For Commercial Tenants:

• When negotiating leases in flood-prone areas or mixed-use developments, request representations and warranties regarding building flood history, insurance claims, and disaster assistance received.
• Document any landlord statements or omissions regarding property condition and risk, especially in coastal or low-lying Tampa Bay locations.

Action items for Tampa Bay business clients

If you own, lease, develop, or manage residential property in Florida, ensure your lease forms are updated to reflect flood disclosure obligations by October 1, 2025.

For landlords of mixed-use properties, prepare standard disclosure forms, a workflow for issuing them, and a process for auditing past disclosures for residential components. Consider adopting similar voluntary disclosure practices for commercial tenants to reduce future litigation exposure.

For commercial tenants entering into new leases: negotiate for express disclosure language regarding flooding, insurance claims, and known property risks, particularly in Tampa Bay’s flood-prone regions.

Document and maintain records of any known flooding incidents, assistance received, and insurance claims made to reduce the risk of future litigation.

Why These Changes Are Important for Tampa Bay

Tampa Bay’s economy is active and evolving. With growth in commercial real-estate development, mixed-use communities, and lease negotiations across Hillsborough, Pinellas, and Pasco Counties, the legal environment must adapt. These statutory changes — in tax repeal, litigation process, and lease drafting — create both opportunity and challenge for local businesses:

Opportunity: The business rent tax repeal delivers immediate cost savings. Being proactive enables landlords and tenants to refine lease terms, negotiate more favorable risk allocation, and avoid potential future litigation pitfalls.

Challenge: Failing to update contracts or internal processes exposes parties to inadvertent non-compliance, defective service, or discovery of non-disclosed risks.

From a business-law perspective, the new service-of-process rules, tax repeal, and disclosure obligations emphasize the importance of strong contract drafting, thorough due diligence, and timely counsel.

Key Takeaways

Effective October 1, 2025, HB 7031 eliminates the business rent tax, saving Florida commercial tenants approximately $2.5 billion annually. Landlords and tenants must immediately audit leases, update billing systems, and clarify who benefits from the repeal to avoid disputes.

HB 157/SB 576 became effective April 29, 2025, and refines Florida’s service of process regime, with substantive amendments applying to service made on or after October 1, 2025. Businesses must ensure registered agents meet new hours requirements and update service protocols.

SB 948 brings new flood-risk disclosure requirements for residential landlords effective October 1, 2025. While not directly applicable to commercial leases, the law signals heightened transparency expectations that commercial landlords should proactively address to reduce litigation risk.

Tampa Bay businesses should act now: audit leasing forms, update service protocols, remove sales tax from commercial rent invoices, and consult with business-law counsel to ensure compliance with the revised statutes and protect assets.

The statutory changes raise the stakes for lease negotiations, landlord/tenant litigation, and commercial contract enforcement. Sound legal advice matters.

Contact Us

If you operate a business in Tampa Bay or lease commercial property in Florida and want to review your leases, contracts, or litigation exposure under these new laws, the attorneys at Roussos Law Group are ready to help. Reach out today for a consultation.