you! As of October 1, 2025, the sales tax rate on commercial rent has been completely repealed! The same goes for the local sales tax rates on commercial rent. So, if you are a commercial landlord or a commercial tenant, you no longer have to pay or even deal with the headache of sales tax in Florida!
Section 212.031 has been the sales tax on rental or license fee for use of real property since 1969. Florida has been the only state in the country to impose a sales tax on commercial rent. It has been considered a real disadvantage to attracting large businesses to the state, so Florida has been trying to reduce/eliminate the tax since 2016.
You might find it interesting that the estimate cost to the last 2% reduction of the tax rate was over $900,000,000 … a year.
If you are a commercial landlord and that was the only thing you had to register for Florida sales tax, then the state claims they automatically deregistered commercial landlord only accounts. But if I were you, I would double check to make sure your sales tax registration has been deactivated. If not, then you need to deactivate the registration to avoid penalties for not filing timely. You also need to make sure your tenants are notified of the changes in total rent that needs to be paid or you will be dealing with the headaches of giving refunds back to the tenants.
If you are a commercial tenant, then make sure you are adjusting your payments to account for the eliminated sales tax. If your landlord is not aware of the change in law, then forward this article to them and suggest they give me a call.
Either way, enjoy the freedom from tax. The commercial real estate market has taken a pretty big hit since COVID and this is a much needed positive change to the real estate market.
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 is also the State and Local Tax Chairman for the AAA-CPA and past president of the Florida AAA-CPA. For 2022 to 2024, Mr Sutton was 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.
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
FL SALES TAX AUDIT – FROM AUDIT NOTICE (DR-840) TO NOPA, published September 17, 2023, by Matthew Parker, Esq.
FLORIDA SALES TAX INFORMAL WRITTEN PROTEST, published November 17, 2018, by James Sutton, CPA, Esq.
FLORIDA SALES TAX: ARE TARRIFS TAXABLE?, published May 24, 2025, by James Sutton, CPA, Esq.
FLORIDA SALES TAX: TRANSFEREE LIABILITY, published June 13, 2025, by James Sutton, CPA, Esq.
FLORIDA SALES TAX ARREST: FT LAUDERDALE CAR DEALER, published June 9, 2025, by James Sutton, CPA, Esq.
FLORIDA SALES TAX – VOLUNTARY DISCLOSURE PROGRAM, published April 9, 2018.