The self-storage industry has been absolutely booming in Florida, with new, good-looking storage facilities popping up just about everywhere. Low operating costs with steady cash returns seems to have drawn in a lot of investment lately. With the repeal of Florida’s sales tax on commercial rent effective October 1, 2025, there seems to be a whole lot of confusion out there whether the self-storage industry will need to charge sales tax to renters going forward. This article is designed to clear up that confusion. The short answer is that self-storage fees will NOT be subject to Florida sales tax as of October 1, 2025 UNLESS what is being stored is a car, boat, or plane. That being said, I do understand why just so many people are getting this wrong, including some major law firms in Florida. Here’s why…
Even though 2025 legislation repealed the commercial rent sales tax that was imposed under sec. 212.031, F.S. as well as the local surtaxes on commercial rent, there are still numerous references to “storage” being taxed throughout Chapter 212 that were not repealed. Most notably, sec 212.03, will still make it a taxable activity to charge a fee to store a car, boat, or plane in Florida and the landlord would need to collect and remit tax on such rental revenue (subject to bailment rules – see article link below). Unfortunately, you will find many other references throughout all of Chapter 212 that specifically state storage is taxable in Florida. If the commercial rent tax is repealed, then how is “storage” still taxable? It has to do with Florida’s use tax, not the rental tax.
The heart of Florida’s use tax is the imposition of a tax on the use or storage of tangible personal property in Florida that was not otherwise subject to Florida sales tax. If you buy something outside of Florida and bring it to Florida, then Florida is going to impose a use tax on the use or “storage” of that tangible personal property in Florida. You get credit for sales tax paid to other states and there is a HUGE exemption for inventory held for resale, but otherwise, there is a tax on the use or storage of that property in Florida. However, the tax is imposed on the owner of the property based on the owner’s cost of that property, (see 212.05, F.S.) not on the landlord tenant agreement. So, technically, the storage of tangible personal property will still be taxable in Florida after October 1, 2025. However, that tax will NOT be imposed on the rental of the storage space. Instead, a use tax is imposed on the owner of that tangible property to be paid directly to the state by the owner of that property IF that property has not already been subject to sales tax in Florida. The landlord renting the space has no responsibility at all for the use taxes the owner of the property owes the state.
Now I can hear all self-storage owners (and their tax advisors) make a collective sigh of relief! If you have any questions about the repeal of the sales tax on commercial rent, then please don’t hesitate to reach out.
About the Author: James Sutton is a Florida licensed CPA and attorney as well as a shareholder 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 has been the State and Local Tax Chairman for the AAA-CPA, past president of the Florida AAA-CPA, and the Chairman for the State Tax Committee for the FICPA. Otherwise, you can learn more about Mr. Sutton in his firm bio HERE and you call him directly at 813-775-2131 or email JamesSutton@FloridaSalesTax.com
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 even have former sales tax auditors on staff. We represent taxpayers and business owners from the entire state of Florida. Contact us for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.
ADDITIONAL RESOURCES
FLORIDA SALES TAX – REPEAL OF COMMERCIAL RENT TAX, published July 1, 2025, by James Sutton, CPA, Esq.
FL SALES TAX – TAXABLE COMMERCIAL STORAGE OR BAILMENT, published November 10, 2015, by Matthew Parker, Esq.
FL SALES TAX AUDIT – FROM AUDIT NOTICE (DR-840) TO NOPA, published September 17, 2023, by Matthew Parker, Esq.
FLORIDA SALES TAX AUDIT HELP, published January 8, 2025, by James H. Sutton, CPA, Esq.
FLORIDA SALES TAX AUDITS PROCESS AND TRAPS, published March 4, 2023, by David Brennan, Esq.
DON’T HIRE AN IRS ATTORNEY FOR SALES TAX PROBLEMS!, published July 17, 2024, by James Sutton, CPA, Esq.
©Copyright 2025 – James Sutton, All Rights Reserved