privilege. Currently, the tax is imposed at the rate of 6 percent in every county except Miami-Dade which fixes the rate at 7 percent by reason of an add-on at the county option. Tallahassee, These types of structures need to be especially mindful of the sales tax rules because, even though the two businesses have the same owner, sales tax is still due on any rental payments (or payments construed as rent) made from the business to the real estate holding company. Suite 930, Effective January 1, 2020, the State of Florida’s sales tax rate on commercial real property lease payments (including base rent and additional rent) will be reduced from 5.7% to 5.5% for payments received for occupancy periods beginning on or after January 1, 2020. Your browser is out of date. Counties marked with a in the list below have a county-level sales tax. 3500 Financial Plaza In the map of Florida above, the 67 counties in Florida are colorized based on the maximum sales tax rate that occurs within that county. Lee County, Florida Sales Tax Rate 2021 Up to 6.5% The Lee County Sales Tax is 0.5% A county-wide sales tax rate of 0.5% is applicable to localities in Lee County, in addition to the 6% Florida sales tax. Groceries and prescription drugs are exempt from the Florida sales tax 2021 Florida state sales tax Exact tax amount may vary for different items The Florida state sales tax rate is 6%, and the average FL sales tax after local surtaxes is 6.65%. Florida imposes a sales tax of six percent on the “total rent” charged under a lease. They will charge a late fee ofa minimum of $50 if 10% of Line 10 is less than $50 or 10% of the amount due on Line 10. FL This rate includes any state, county, city, and local sales taxes. Print Exemption Certificates. Tampa, You can also download a Florida sales tax rate database. Mr. Sutton is the State and Local Tax Chairman for the AAA-CPA and the president of the FAA-CPA. We represent taxpayers and business owners from the entire state of Florida. endorse, sponsor or otherwise approve of any third-party content that All rights reserved. Florida is the only state in the nation that subjects commercial rent to sales tax, which puts Florida at a competitive disadvantage when trying to get major businesses to locate in Florida. This website is designed for general information only. 8875 Hidden River Parkway Florida has state sales tax of 6%, and allows local governments to collect a local option sales tax of up to 1.5%. Florida has a 6% state sales tax on commercial rents, which landlords generally pass on to their tenants. The tax applies to the total rent charged for renting, leasing, letting, or granting a license to use real property. The rental income that you collect on your own bookings is subject to both Sales & Use Tax and Tourist Development Tax. © Copyright 2020 James Sutton, All Rights Reserved, (888) 444-9568 Commercial landlords and management companies sending invoices for occupancy periods beginning on or after January 1, 2020 should update their records to account for the sales tax rate reduction. Download our Florida sales tax database! Section 212.031 of the Florida Statutes has been amended to reduce the applicable sales tax rate from 5.7% to 5.5% on rent payments received for occupancy periods beginning on … Let’s all hope the worst of Covid is behind us and our economy can get the engine running full steam again so Florida can continue to reduce the rental … 33309 OF LAW AT STETSON UNIVERSITY COLLEGE OF LAW TEACHING STATE AND LOCAL TAX, Property taxes fund public schools, libraries, medical services, infrastructure, and roads. OF BUSINESS AND PROFESSIONAL REGULATIONS." Fort Lauderdale, This unusual tax on the owners of commercial real estate has been in effect in Florida since 1969. may be accessed through this website. Florida requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. in your initial email inquiry to the Firm. The County sales tax rate is %. Calculating the sales tax on commercial rent is more difficult than one would imagine. FL SALES TAX vs RESTAURANT MANAGEMENT AGREEMENTS, published October 29, 2018, by Jeanette Moffa, Esq. Otherwise, you can learn more about Mr. Sutton in his firm bio HERE. Currently, the tax is imposed at a rate of 6 percent in every county, with the exception of Miami-Dade County. Mr. Sutton handles audits, protest, litigation, criminal cases, revocations, collections, and consulting engagements all in the area of sales tax. Has been in effect in Florida since 1969 on January 1, 2019, by Michael Moffa imposed by Florida... 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