Florida Sales Tax Rate Reduced for Lease, Rental, or License to Use Real Property

Effective January 1, 2020, the Florida sales tax rate for commercial rentals will be reduced from 5.7% to 5.5%. The sales tax applies to the total rent charged for renting, leasing, letting, or granting a license to use real property. 

Examples of real property rentals include:

• Retail spaces

• Commercial offices

• Health Care Facilities

• Warehouses

• Self-storage units

• Mini-warehouses

The decreased rate is not applicable to:

• Parking or storage for motor vehicles 

• Docking or storage of boats

• Tie-down or storage of aircraft

Sales tax due is based on when the tenant occupies, or the time period the property has been leased for, not when the rent is paid. For rental payments made on or after January 1, 2020, for rental periods before January 1, 2020, the 5.7% state sales tax applies, plus additional discretionary sales tax if applicable). For rental payments that entitle occupancy for 2020 that are made before January 1, 2020, the 5.5% state sales tax rate applies, plus additional discretionary sales tax if applicable. 

(Tax Information Publication, No. 19A01-11, Florida Department of Revenue, October 30, 2019, and Section 5, Chapter 2019-42, Laws of Florida; Sections 212.031(1)(c) and (e) and 212.099, Florida Statutes)

Source: Sales Tax Institute