Effective December 1, 2023, Florida’s state sales tax rate on the renting, leasing, letting, or granting a license to use real property (“commercial rentals”) decreases from 5.5% to 4.5%. Examples include rentals of commercial office or retail space, warehouses, self-storage units, and mini-warehouses.
Tax applies to the “total rent” charged, which includes all consideration due and payable by a tenant for the privilege or right to use or occupy the real property. Any local option discretionary sales surtax imposed by the county where the real property is located continues to apply to the total rent charged.
The sales tax is due at the rate in effect when the tenant occupies or is entitled to occupy the real property, regardless of when the rent is paid. For example, rental charges paid on or after December 1, 2023 for rental periods prior to December 1, 2023 are subject to the 5.5% tax rate. Rental payments made prior to December 1, 2023 that entitle the tenant to occupy the real property on or after December 1, 2023 are subject to the 4.5% tax rate.
The Department notes that the reduced state sales tax rate on commercial rentals does not apply to the tax rate imposed on parking or storage of motor vehicles, docking or storage of boats, or tie-down or storage of aircraft. (Tax Information Publication 23A01-20, September 25, 2023, Florida Department of Revenue)