Florida Reduces Sales Tax on Commercial Leases

by DMA Staff | Jul 20, 2017
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Florida reduces the sales tax rate on commercial leases to 5.8 percent. Thank you, Governor Scott!

Florida is the only state in the United States to impose a state sales tax on commercial leases. Governor Rick Scott and the Florida legislature have been attempting to phase out this tax since 2014, however each legislative session concluded in failure. Sales tax accounts for over 70 percent of the revenue for Florida and their revenue stream is very heavily reliant on sales tax. Any reduction in sales tax would be a major downturn for Florida.

In HB-7109, the legislature approved to reduce the state rate from 6 percent to 5.8 percent. The bill is part of Chapter 2017-36 and will not be effective until January 1, 2018. It is important to note that the new tax rate is in effect at the time that a tenant or person occupies or uses the property regardless of when the rent fee payment is due or paid. 

If you have any questions about this update to Florida's sales tax update, please click here.