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FL Sales Tax Rate on Commercial Rent - Down to 2% plus local rate!!!!


For some good news to Florida tenants, renters and licenses of real property, the State of Florida is reducing the state sales tax rate to 2% as imposed under section 212.031, Florida Statutes (“F.S.”).  The Florida Department of Revenue just announced this through Tax Information Publication (TIP) 24A01-02.  The previous state tax rate had been 4.5%.

“Commercial rentals” under section 212.031, F.S., includes  rentals of commercial office or retail space, warehouses, and self-storage units or mini-warehouses as noted in the Department’s TIP.  The Department’s TIP then goes on to state “total rent charged includes all consideration due and payable by the tenant for the privilege or right to use or occupy the real property.”  The TIP reminds taxpayers that the discretionary sales surtax still applies on top of the state rate based on the county where the real property is located (and applies to the total rent charged).

The TIP provides an explanation on the rate of tax that should be applied. The TIP indicates that the tax rate for commercial rent for periods from December 2023 through May 2024 are subject to the 4.5% state tax rate (plus discretionary sales surtax) – even if actually paid on or after June 1, 2024.  Commercial rent for occupancy/use of real property for June 1,2024 or later are subject to the 2% state tax rate (plus discretionary sales surtax) – even if actually paid before June 1, 2024 when the rate takes effect.

The TIP also points out that this rate change does not apply to transient rentals (rentals of living/sleeping accommodations for six months or less), parking or storage spaces for motor vehicles in parking lots/garages, docking or storage spaces for boats in boat docks/marinas, or tie-down or storage space for aircraft at airports.

The TIP directs taxpayers/businesses to Form GT-800016 which is the Department’s brochure  entitled “Sales and Use Tax on the Rental, Lease, or License to Use Commercial Real Property.”  Note that as of April 9, 2024, the brochure has no been updated to reflect the changes as the current brochure was updated November 2023 for the state tax rate change that took effect December 1, 2023.

Follow up with us if you have any questions about the upcoming commercial rent state tax rate chance or other state tax questions. State laws take effect July 1st each year so there may be other impactful sales and use tax changes that you need to be aware of for proper reporting to stay compliant with Florida’s tax laws.

Florida sales tax attorney; florida sales tax audit; Florida sales tax rate on commercial rent About the author: Mr. Parker is a partner in the Law Offices of Moffa, Sutton, & Donnini, P.A., based in the firm's Tampa office. Mr. Parker's practice concentrates on sales and use tax and includes criminal defense of sales tax cases and state tax audits/controversies proceeding from audit through administrative litigation involving sales and use tax and all other state taxes including reemployment tax, communication service tax, and cigarette & tobacco tax.  Mr. Parker also handles matters involving the Department of Business and Personal Regulation and Office of Financial Regulation and the industries they oversee. Mr. Parker received his accounting degree, law degree, and L.L.M. in Taxation from the University of Florida. If you to learn more about Mr. Parker, read his firm bio.

About the law 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.