Recent changes in the Sales Tax Rules in Florida, effective January 1, 2018, will affect the taxability of commercial rental payments for sales tax purposes. Currently, not including any county surtax that may apply, the Florida sales tax rate that applies to all commercial rental payments is 6.0%. Under Florida Statutes 212.031 commercial rental includes ‘the granting of a privilege to use or occupy real property for any purpose and shall include base rent, percentage rents, or similar charges.’
Effective January 1, 2018, the 6.0% is reduced to 5.8%. Based on the adjustments made under the 2017 Florida House Bill No. 7109, the rate automatically reduces for occupancy periods starting January 1, 2018, for new or existing occupancies under new or old leases. Click here to reference the Tax Information Publication issued by the Florida Department of Revenue that provides more details on this change.
Should you have any questions please feel free to contact your Withum Tax Advisor.
|Peter A. Hilera, CPA, Partner