The Florida sales tax rate imposed on commercial rentals will decrease from 5.7 to 5.5 percent, effective January 1, 2020. The tax applies to the total rent charged for renting, leasing, letting, or granting a license to use real property. Some examples of real property rentals include:
The decreased rate does not apply to parking or storage of motor vehicles, docking or storage of boats, or tie-down or storage of aircraft.
Sales tax is due based on when the tenant occupies, or is entitled to occupy, the real property, not when rent is paid. Rental payments paid on or after January 1, 2020, for rental periods prior to January 1, 2020, are subject to the 5.7% state sales tax, plus any applicable discretionary sales tax. Rental payments that entitle occupancy for 2020 but are made prior to January 1, 2020 are subject to the 5.5% state sales tax rate, plus any applicable discretionary sales tax. (Tax Information Publication, No. 19A01-11, Florida Department of Revenue, October 30, 2019 and Section 5, Chapter 2019-42, Laws of Florida; Sections 212.031(1)(c) and (e) and 212.099, Florida Statutes)