Another Reduction in Sales Tax for Commercial Tenants

NEW LAWS IN EFFECT JANUARY 1, 2020

On January 1, 2020, the Florida sales tax rate on commercial leases will be reduced yet again, for the third time in the last three years.  The rate will be reduced from 5.7% to 5.5% for payments received for occupancies on or after January 1, 2020.

The tax rate in effect at the time the tenant occupies, uses, or is entitled to occupy or use the real property is the tax rate applicable to the transaction, regardless of when the rent payment is due or paid.  In other words, rental payments made in December, 2019 applicable to occupancy after January 1, 2020, should be assessed the reduced sales tax rate even though the payment was made before the reduced rate took effect.

No changes have been made to the local option discretionary sales surtax and those amounts will continue to be added to the state sales tax rate. The 2020 combined sales tax and discretionary sales surtax rate for several Florida counties are below:

• About
• Latest Posts

Heather S. Moraes, Esquire

Heather Moraes practices in commercial real estate and leasing, where she represents both regional and national clients, with a focus on retail and office development. She also represents both borrowers and lenders in the areas of loan closings and restructuring. She is a graduate of the University of Florida Levin College of Law with her J.D. and is rated an AV Preeminent attorney by Martindale Hubbell. She is an active member of the International Council of Shopping Centers (ICSC).

Latest posts by Heather S. Moraes, Esquire (see all)

• 2023 Florida Sales Tax Rates for Commercial Tenants - February 3, 2023
• 2022 Florida Sales Tax Rates for Commercial Tenants - February 14, 2022
• Business Rent Tax Reductions Make a Comeback - April 22, 2021