Florida: New Law Lowers Tax Rate on Commercial Rental of Real Property

• Florida’s H.B. 7063, signed by the governor on 5/25/23, lowers the sales tax rate on commercial real property lease rent (known as the “business rent tax”) from 5.5% to 4.5% effective December 1, 2023.
• The rate may be reduced to 2% if the Unemployment Compensation Trust Fund reaches a certain balance.
• Other sales and use tax law changes are also included, such as exemptions for renewable natural gas equipment and targeted tax holidays.

Source Deloitte

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