On April 8, 2024, the Florida Department of Revenue issued a guidance on the upcoming change in rate on Florida’s sales tax on commercial rent. Florida’s Commercial Rent Tax is reducing from 4.5% to 2.0% effective June 1, 2024.
For several years now, Florida has been steadily reducing the rate of its commercial rent tax, imposed under section 212.031, Florida Statutes. However, the pandemic put a pause on those plans until the Florida Unemployment Compensation Trust Fund was replenished to pre-COVID-19 levels. Fortunately, that goal has been accomplished and so the rates will be reduced again effective June 1, 2024.
It is worth nothing that while the law goes into effect June 1, 2024, it is only for rental periods starting that date. Therefore, if rent is paid after June 1, 2024, for periods prior to June 1, 2024, then the tax rate is still 4.5% for the prior periods. Further, the reduced tax rate does not apply to:
- transient rentals, or rentals or leases of living, sleeping, or housekeeping accommodations for six months or less
- parking or storage spaces for motor vehicles in parking lots or garages,
- docking or storage spaces for boats in boat docs or marinas,
- tie-down or storage space for aircraft at airports
For more information, check out the Florida Department of Revenue’s Taxpayer Information Publication (TIP) 24A01-02.
