FLORIDA SALES TAX RATE ON COMMERCIAL RENT 2020

Florida is the only state in the nation that subjects commercial rent to sales tax, which puts Florida at a competitive disadvantage when trying to get major businesses to locate in Florida. There has been a push to eliminate the sales tax on commercial rent for several years, but the state was making over $2 billion a year from the tax. The plan has been to slowly, but surely reduce the sales tax rate on commercial rent to zero and we’ve seen reductions in the tax rate for several years now. On January 1, 2020 the state tax rate was reduced from 5.7% o 5.5%. However, most people will pay more than 5.5% because commercial rent is also subject to the local surtaxes at a rate where the building is located. So, for example, the sales tax rate in Hillsborough County will be 8.0% (5.5% plus 2.5% local surtax) while the tax in Orange County will be 6.0% (5.5% plus 0.5% local surtax rate). A complete list of sales tax rates (as of the date of publication of this article) on commercial rent is provided below (taken directly from DOR’s website).

State of Florida

2020 Sales Tax + Surtax Rate

Commercial Rent

County

Surtax Rate

State Rate

ALACHUA

1.00%

6.50%

BAKER

1.00%

6.50%

BAY

1.00%

6.50%

BRADFORD

1.00%

6.50%

BREVARD

1.00%

6.50%

BROWARD

1.00%

6.50%

CALHOUN

1.50%

7.00%

CHARLOTTE

1.00%

6.50%

CITRUS

0.00%

5.50%

CLAY

1.00%

6.50%

COLLIER

1.00%

6.50%

COLUMBIA

1.00%

6.50%

DESOTO

1.50%

7.00%

DIXIE

1.00%

6.50%

DUVAL

1.00%

6.50%

ESCAMBIA

1.50%

7.00%

FLAGLER

1.00%

6.50%

FRANKLIN

1.00%

6.50%

GADSDEN

1.50%

7.00%

GILCHRIST

1.00%

6.50%

GLADES

1.00%

6.50%

GULF

1.00%

6.50%

HAMILTON

1.00%

6.50%

HARDEE

1.00%

6.50%

HENDRY

1.00%

6.50%

HERNANDO

0.50%

6.00%

HIGHLANDS

1.50%

7.00%

HILLSBOROUGH

2.50%

8.00%

HOLMES

1.00%

6.50%

INDIAN RIVER

1.00%

6.50%

JACKSON

1.50%

7.00%

JEFFERSON

1.00%

6.50%

LAFAYETTE

1.00%

6.50%

LAKE

1.00%

6.50%

LEE

0.50%

6.00%

LEON

1.50%

7.00%

LEVY

1.00%

6.50%

LIBERTY

2.00%

7.50%

MADISON

1.50%

7.00%

MANATEE

1.00%

6.50%

MARION

1.00%

6.50%

MARTIN

0.50%

6.00%

MIAMI-DADE

1.00%

6.50%

MONROE

1.50%

7.00%

NASSAU

1.00%

6.50%

OKALOOSA

0.50%

6.00%

OKEECHOBEE

1.00%

6.50%

ORANGE

0.50%

6.00%

OSCEOLA

1.50%

7.00%

PALM BEACH

1.00%

6.50%

PASCO

1.00%

6.50%

PINELLAS

1.00%

6.50%

POLK

1.00%

6.50%

PUTNAM

1.00%

6.50%

SANTA ROSA

1.00%

6.50%

SARASOTA

1.00%

6.50%

SEMINOLE

1.00%

6.50%

ST JOHNS

0.50%

6.00%

ST LUCIE

1.00%

6.50%

SUMTER

1.00%

6.50%

SUWANNEE

1.00%

6.50%

TAYLOR

1.00%

6.50%

UNION

1.00%

6.50%

VOLUSIA

0.50%

6.00%

WAKULLA

1.00%

6.50%

WALTON

1.00%

6.50%

WASHINGTON

1.50%

7.00%

Florida sales tax attorney; Florida sales tax audit; Florida sales tax audit defense; Florida sales tax informal written protest; Florida sales tax protest; Florida DOR administrative hearing; Florida economic nexusAbout the author: James Sutton is a Florida licensed CPA and attorney as well as a partner in Moffa, Sutton, & Donnini, PA. Mr. Sutton is charge of the Tampa office of the firm and practices almost exclusively in the area of Florida Sales & Use Tax Controversy. Mr. Sutton handles audits, protest, litigation, criminal cases, revocations, collections, and consulting engagements all in the area of sales tax. Mr. Sutton is an active member in the FICPA, AICPA, AAA-CPA, and FIADA. Mr. Sutton is the State and Local Tax Chairman for the AAA-CPA and the president of the FAA-CPA. Mr. Sutton was also CFO an in-house counsel for two construction companies from 2003 to 2011, so he understands more about the construction industry than most tax attorneys. If you are interested in learning more about Florida sales tax from Mr. Sutton, you can find his speaking engagements around the state HERE. Otherwise, you can learn more about Mr. Sutton in his firm bio HERE.

About the firm: At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is Florida taxes, with a very heavy emphasis in Florida sales and use tax. We have defended Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.

ADDITIONAL RESOURCES

HOW TO CALCULATE FL SALES TAX ON RENT, published April 11, 2019, by Michael Moffa

FLORIDA SALES TAX INFORMAL WRITTEN PROTESTS, published November 17, 2019, by James Sutton, CPA, Esq.

FL SALES TAX vs RESTAURANT MANAGEMENT AGREEMENTS, published October 29, 2018, by Jeanette Moffa, Esq.

FL GOV SCOTT CALLS FOR PHASE OUT OF COMMERCIAL RENT SALES TAX, published January 29, 2014, by James Sutton, CPA, Esq.

FLORIDA SALES TAX – VOLUNTARY DISCLOSURE PROGRAM, published April 9, 2019, by Jeanette Moffa, Esq.

© Copyright 2020 James Sutton, All Rights Reserved

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