2025 Governmental Leasehold Intangible Tax Valuation Factor Table

Florida law mandates the taxation of certain leasehold estates and related possessory interests in properties owned by the United States, the State of Florida, or any of its political subdivisions, municipalities, agencies, authorities, or other governmental units. Under specific circumstances, these leasehold interests are taxed as intangible personal property. Below is a comprehensive guide to the 2025 valuation factor table and related tax considerations.

Taxation of Leasehold Estates

Leasehold estates or possessory interests are taxed as intangible personal property if:

• The leased property is undeveloped or predominantly used for residential or commercial purposes.

• Rent payments are due as consideration for the leasehold estate or possessory interest.

Lessees of government-owned property are required to file an annual intangible tax return unless the leasehold estate qualifies for specific exemptions.

Determining the Intangible Tax

The just value of a leasehold estate or possessory interest for tax purposes is calculated based on:

1. Remaining Rent Payments: The total rent payments for the remaining term of the lease.

2. Discount Rate: The Federal Reserve – Atlanta – discount rate on the last business day of the prior year, plus 1%.

The Florida Department of Revenue annually determines the valuation factor tables based on the discount rate plus 1%. For 2025, the discount rate plus 1% is 5.5%.

2025 Valuation Factor Table

The valuation factor table is used to calculate the just value of a leasehold estate or possessory interest for the 2025 Governmental Leasehold Intangible Personal Property Tax Return (Form DR-601G). Below is the table:

For the full table, CLICK HERE.

Additional Information

• Rule Reference: Rule 12C-2.010, Florida Administrative Code.