Florida is the only state that imposes sales tax on the lease of commercial real property. Over the last several years, this tax rate has been reduced in increments from 6.0% to 5.5%. Under recently enacted legislation, this rate will be further reduced to 2.0%. However, this rate reduction will not go into effect until two months after Florida’s Unemployment Compensation Trust Fund is replenished to pre-pandemic levels. Depending upon future unemployment claims, Florida economists estimate this may occur in 2024 or 2025. The 3.5% reduction is estimated to save commercial tenants approximately $1.2 billion annually. The local sales tax portion of the commercial rent tax is not changed by the new legislation.
The Florida Department of Revenue published the discretionary sales surtax rates for 2014 (http://www.floridasalestax.com/documents/FL-Discretionary-Sales-Tax-Rates-2014.pdf).
Florida imposes a state-wide 6% sales tax, but most Florida counties impose an additional local sales tax rate known as the “discretionary sales surtax” or “local option county sales tax.” The discretionary sales surtax rates currently range from 0.5% to
1.5%. The applicable rate is the rate for the county where the goods are delivered or the services are provided. For most transactions, the discretionary sales surtax is only imposed on the first $5,000 of the sales amount. There is no cap on the discretionary
sales surtax for rentals of real property, admissions (such as country club dues), service warranties, or taxable services.
If you have questions regarding the discretionary sales surtax or any other Florida taxes, please contact: