- Florida legislature passed HB 7031 to eliminate sales tax on commercial real property leases if signed by Gov. DeSantis
- Current state sales tax on commercial leases is 2 percent, combined with local tax rates it is 3 percent to 3.5 percent
- HB 7031 would remove both state and local sales tax on commercial leases
- Change effective from October 1, 2025
- Tax applies to occupancy periods, so prepaid rent for October 2025 or later is not taxed
- Short-term residential rentals and vehicle parking, boat docking, and aircraft hangar rentals remain taxable
- Sales tax still due for occupancy periods before October 1, 2025
- Successor liability remains a concern for purchasers of commercial real property
- Purchasers should require a certificate of compliance to avoid successor liability
- Sellers should continue filing sales tax returns to obtain a certificate of compliance
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.
