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Effective June 1, 2024, the state sales tax rate on commercial real property lease payments (including base rent and additional rent) in Florida will be reduced from 4.5% to 2.0% for payments received for occupancy periods beginning on or after June 1, 2024. This reduction applies to rentals of commercial properties such as offices, retail spaces, warehouses, and self-storage units. The key points regarding this change are:
- For rental payments made on or after June 1, 2024, covering occupancy periods starting from that date, the new 2.0% state sales tax rate will apply.
- For rental payments made before June 1, 2024, but covering occupancy periods on or after that date, the reduced 2.0% state rate will also apply.
- However, payments made on or after June 1 for occupancy periods before that date (December 1, 2023 - May 31, 2024) will still be taxed at the higher 4.5% rate.
- The local discretionary sales surtax imposed by counties, ranging from 0.5% to 2.5%, will still apply in addition to the reduced 2.0% state rate.
So in summary, for commercial rental transactions in Florida starting June 1, 2024, tenants will pay a significantly lower 2.0% state sales tax rate, plus the applicable local surtax based on the county where the property is located.
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