With the repeal of Florida’s sales tax on commercial rent effective October 1, 2025, there are some things that might be considered “rent” that are still taxable after the repeal of commercial rent. This article is designed to clear up that confusion – specifically about storage and parking. The short answer is that 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. However, it is extremely important to note that the storage of items besides cars, boats, and planes may still end up being taxable! More on this later in the article.
Even though 2025 legislation repealed the commercial rent sales tax that was imposed under sec. 212.031, F.S. as well as the local surtaxes on commercial rent, there are other statutes that still tax things that you might consider rent. Most notably, sec. 212.03(6), F.S., provides the following:
The Legislature finds that every person who leases or rents parking or storage spaces for motor vehicles in parking lots or garages, including storage facilities for towed vehicles, who leases or rents docking or storage spaces for boats in boat docks or marinas, or who leases or rents tie-down or storage space for aircraft at airports is engaging in a taxable privilege.
So, while the booming self-storage industry in Florida would not be considered taxable, any business that charges a fee to store cars, boats, or planes most likely will still need to be collecting and remitting sales tax on the fees. (potentially subject to bailment rules – see article link below).
There is still an issue hanging out there for companies that store cars, boats, and planes. Generally, the Florida Department of Revenue considers a “bailment” under common law to not be taxable. There are rulings out there on the bailment issue for things like wine storage, but nothing specific on cars, boats, or planes. In simple terms, a bailment is present when the owner of the item has no access to the item and the person holding the property has full responsibility to care for the item while in their possession. The concept of non-taxability of bailments was even put into a rule many years ago under Rule 12A-1.070(22)(a), F.A.C. (which was repealed 10/1/25). The problem is that the rule was specifically about commercial rent under sec. 212.031, F.S., and not the storage fees for cars, boats, and planes under Sec. 212.03(6), F.S. So, there is still a question hanging out there whether bailments are exempt from sales tax for cars, boats, and planes. At the moment, I am aware of at least one Letter of Technical Advisement pending before the Florida Department of Revenue on this issue. I’ll publish another article specifically on this topic when we get back answers. So, stay tuned!
With the exception of the bailment issue, this seems like a simple rule for just cars, boats, and planes that would be easy to follow, right? 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 if it isn’t for a car, boat, or plane? I’ve seen many people misunderstand this issue, including major law firms. The answer has to do with Florida’s use tax, not the commercial rental tax or storage tax for parking cars, boats, or planes.
Just about everyone not living under a rock knows about Florida’s sales tax. However, there is a very large part of the population that are not aware of Florida’s “use tax.” Every state with a sales tax also has a complimentary “use tax,” which imposes a tax on anyone that acquires something without paying sales tax that would have been subject to sales tax if the item was bought from a retailer in Florida. In a nutshell, the use tax is meant to stop people from avoiding sales tax by buying goods outside the state for use in the state (think internet purchases or catalog purchases in years past). So, if you acquire something from outside of Florida without paying sales tax, then any use or “storage” of that item in Florida is subject to a “use tax” equal to what the sales tax would have been on that item 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, while the landlord charging storage fees for cars, boats, and planes has an obligation to collect and remit the tax, the use tax on storage of property in Florida is imposed on the owner of the property based on the owner’s cost of that property, (see, sec. 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 (except cars, boats, and planes). 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. Here’s one more kicker… If someone buys a car, boat, or plane outside of Florida without paying sales tax and stores it in Florida, then the landlord will be charging sales tax on the storage fees AND the owner of the vehicle will still owe use tax on the vehicle (if the vehicle was not kept outside of Florida more than six months before bringing it into Florida)!
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 and Florida Bar Tax Section. Mr. Sutton has been the State and Local Tax Chairman for the AAA-CPA, past president of the Florida AAA-CPA, and past Chairman for the State Tax Committee for the FICPA. Mr. Sutton also taught law school as an adjunct professor over 20 years at Stetson University College of Law. 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 150 years of cumulative sales tax experience within our firm. Our shareholders 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.
AUTHORITY
Sec. 212.031, F.S., repealed
Sec. 212.03(6), F.S., sales tax imposed on fees for storage of cars, boats, planes
Sec. 212.05, F.S. , Sales, Storage, and Use Tax
Rule 12A-1.070, F.A.C., repealed
ADDITIONAL RESOURCES
FLORIDA SALES TAX – SELF-STORAGE AFTER 10-1-25, published July 22, 2025, by James Sutton, CPA, Esq.
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 AND USE TAX FOR TAXABLE SERVICES, published December 1, 2023, by David Brennan, 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.
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