FL – Tax rate on commercial rentals reduced from 4.5% to 2% effective june 1, 2024

Effective June 1, 2024, the Florida sales tax rate imposed on the total rent charged for renting, leasing, letting, or granting a license to use real property (also known as “business rent tax” or “commercial rentals”) is reduced from 4.5% to 2%.

Examples of Real Property Rentals Subject to Tax
Examples of real property rentals subject to this tax include rentals of:

commercial office or retail space;

warehouses; and

self-storage units or mini-warehouses.

Tax is Due at Rate in Effect During Time Tenant Occupies Real Property
Sales tax is due at the rate in effect during the time the tenant occupies or is entitled to occupy the real property regardless of when the rent is paid:

rental charges paid on or after June 1, 2024, for rental periods of December 1, 2023, through May 31, 2024, are subject to the 4.5% state sales tax rate plus any applicable discretionary sales surtax; and

rental payments made prior to June 1, 2024, that entitle the tenant to occupy the real property on or after June 1, 2024, are subject to the 2% state sales tax rate plus any applicable discretionary sales surtax.

Tax Information Publication, No. 24A01-02, Florida Department of Revenue, April 8, 2024