Florida State Reduces Commercial Lease Sales Tax to 2% Effective June 1, 2024

• Florida State Sales Tax Rate on Most Commercial Leases Reduced to 2% Beginning June 1
• State’s portion of sales tax on commercial property leases reduced from 4.5% to 2%
• Local county option tax rate remains between 0.5% and 1.5%
• Adjustment due to legislation mandating reduction once trust fund replenished to pre-pandemic levels
• State-level tax reduction effective June 1, 2024
• 2% state-level tax rate applies to leases of commercial property only
• Tax rate on short-term and residential rentals remains at 6%
• Reduced rate does not apply to motor vehicle parking, boat dock rentals, or aircraft storage fees
• Reduced rate only applicable to rental periods commencing June 1, 2024
• Florida sales tax due on all payments required under the lease
• Local county option tax due on entire rental charges
• Local county option tax only due on first $5,000 of purchase price for tangible personal property, not for real property leases.

Source: gtlaw.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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