On March 31, 2025, the Florida Department of Revenue issued TIP 25A01-02, officially notifying taxpayers that two Hillsborough County discretionary sales surtaxes—the 0.5% indigent care surtax and the 0.5% local government infrastructure surtax—will resume effective June 1, 2025. These surtaxes had been temporarily suspended following a Florida Supreme Court decision that invalidated a separate surtax adopted by Hillsborough voters in 2018. With the suspension period ending, businesses operating in Hillsborough County must now prepare to update their systems and ensure proper compliance with the restored surtax obligations.

For most taxable transactions, the resumption of these surtaxes will bring Hillsborough County’s total combined sales tax rate to 7.5%. This rate includes the 6% Florida state sales tax, the previously unsuspended 0.5% school capital outlay surtax, and the two reinstated 0.5% local surtaxes. For example, a business selling a $1,000 taxable item would now be responsible for collecting and remitting $75 in total tax. Dealers must ensure their systems and staff are prepared to apply the correct rate as of June 1, 2025.

For commercial real property rentals, the total tax rate will differ slightly due to Florida’s reduced state-level tax on such rentals. Under section 212.031, Florida Statutes, the state imposes a 2% tax on commercial leases. When combined with the three Hillsborough County surtaxes (0.5% each), the total rate applicable to commercial rentals within the county will be 3.5% beginning June 1, 2025. Landlords and property managers should take care to update invoices, leases, and accounting systems accordingly, particularly for rental periods that straddle the effective date.

The temporary suspension of these surtaxes was rooted in the legal fallout from Robert Emerson, et al. v. Hillsborough County, Florida, et al., a 2021 decision from the Florida Supreme Court. In that case, the Court invalidated the 1% transportation sales surtax that Hillsborough County voters had approved in 2018. The Court determined that the manner in which the surtax revenues were allocated—via a ballot initiative that restricted the county commission’s discretion—was unconstitutional. As a result, the transportation surtax was not only voided going forward but also deemed unconstitutional retroactively.

In response, the Florida Legislature enacted specific provisions in section 212.054(9), Florida Statutes, as well as in Chapter 2024-231, Laws of Florida, to address the aftermath of an invalidated discretionary surtax. Under these provisions, the Department of Revenue was directed to suspend the collection of certain other local surtaxes if proceeds from the unconstitutional surtax were available to offset the revenue. These offsets were designed to temporarily relieve local taxpayers while state and county officials resolved the issue. In Hillsborough County’s case, the funds from the overturned transportation surtax were used to suspend collection of the indigent care and infrastructure surtaxes.

However, this legislative relief was only temporary. The length of the suspension was tied to the availability of surplus funds from the invalidated surtax. According to TIP 25A01-02, the Department of Revenue has now determined that the remaining funds will be depleted by May 31, 2025. As a result, the suspension will end, and the previously authorized surtaxes must once again be collected beginning June 1, 2025.

This change carries both practical and compliance-related implications for businesses operating in Hillsborough County. Point-of-sale systems must be updated to reflect the restored 7.5% rate. Businesses that invoice customers manually, including service providers and contractors, must ensure those invoices reflect the appropriate tax rate. Businesses that lease commercial real estate should review rental agreements and communicate the new tax rates to tenants as soon as possible to avoid disputes or shortfalls. Additionally, sales tax returns filed for June 2025 and later periods must include the appropriate surtax amounts to avoid underpayment penalties.

Tax professionals, accountants, and legal advisors should alert their clients to the surtax changes and confirm that systems, contracts, and accounting practices are in alignment. While the Department has issued formal guidance through TIP 25A01-02, and earlier through TIP 24A01-15 (which explained the original suspension), many taxpayers may not be aware that these surtaxes are returning—especially those who assumed the suspension was permanent or were unaware of the legal and legislative context.

The Florida Department of Revenue has made clear that the resumption of these surtaxes is mandatory and based on statutory authority. Businesses that fail to begin collecting and remitting the correct surtax amounts as of June 1 risk falling out of compliance. Dealers and advisors seeking more detailed information can access TIP 25A01-02 through the Department’s website or contact the Department’s Taxpayer Services division directly.

Ultimately, the return of these surtaxes serves as a reminder that local tax policy is often shaped by litigation, legislation, and administrative determinations. What began as a constitutional challenge to a single surtax evolved into a multi-year policy adjustment that temporarily suspended unrelated surtaxes and now requires businesses to resume compliance. As of June 1, that chapter comes to a close—and for Hillsborough County businesses, the responsibility to get the tax right resumes in full force.