The state sales tax rate imposed under section 212.031, Florida Statutes (F.S.), on the total rent charged for renting, leasing, letting, or granting a license to use real property (“commercial rentals”) is reduced from 4.5% to 2.0%. This includes rentals of commercial office or retail space, warehouses and self-storage units or mini-warehouses.

This change will go into effect June 1, 2024.

The total rent charged includes all consideration due and payable by the tenant for the privilege or right to use or occupy the real property. The local option discretionary sales surtax imposed by the county where the real property is located continues to apply to the total rent charged.

Sales tax is due at the rate in effect during the time the tenant occupies or is entitled to occupy the real property, regardless of when the rent is paid.

• Rental charges paid on or after June 1, 2024 for rental periods prior to June 1, 2024 are subject to 4.5% state sales tax plus any applicable discretionary sales surtax.

• Rental payments made prior to June 1, 2024 that entitle the tenant to occupy the real property on or after June 1, 2024 are subject to 2.0% state sales tax plus any applicable discretionary sales surtax.

• The reduced state sales tax rate on commercial rentals does not apply to the tax rate imposed on parking or storage of motor vehicles, docking or storage of boats or tie-down or storage of aircraft.

As always, if you have any questions feel free to contact us.