Florida’s Reduced Commercial Rental Sales Tax Takes Effect June 1, 2024

🗓️ Effective Date: The reduced tax rate of 2% starts on June 1, 2024.

📉 Tax Reduction: Florida’s state tax on commercial rentals drops from 4.5% to 2%.

🏢 Application: Applies to commercial office space, retail space, warehouses, and self-storage units.

🛑 Exclusions: Does not apply to parking lots, boat docks, and aircraft hangars.

🏷️ Separate Business: Each commercial rental property location needs its own tax certificate.

📑 Compliance: Both landlords and tenants need to be aware of their tax obligations.

📝 Lease Review: Check lease terms for clauses on sales taxes to ensure proper compliance.

📊 Mitigation Strategy: Companies not in compliance can use Florida’s Voluntary Disclosure and Compliance Program (VDCP) to mitigate potential penalties.

For more information, visit the Florida Department of Revenue’s Tax Information Publication 24A01-02.

What Luxury Property Solutions, LLC Recommends

💼 Business Strategy: Consider the unique tax landscape in Florida when relocating or opening a new business location.

💡 Lessors: Update records to reflect the new tax rate and ensure compliance with the updated regulations.

📋 Records Update: Ensure rental charges are accounted for at the correct tax rate based on the rental period.