PSA for Florida Residents

I wanted to let you know about a recent passage of House Bill 7603 which reduces the Florida sales tax rate on commercial rental real estate property from 5.5% to 4.5%.  The law does not change the discretionary local-option sales surtax property owners may be required to collect on the total rent they charge. This rate change is effective for rental periods on or after December 1, 2023, even if such amounts are prepaid prior to that time.

Therefore, if a commercial real estate rental property is located in Duval County (a 1.5% county surtax) and has a rental period of November 2023 but paid in December 2023, the required sales tax would be 5.5% + 1.5% = 7% of the total rent paid.  If the same property has a rental period for December 2023 but rent is prepaid in November 2023, the required sales tax would be 4.5% + 1.5% = 6% of the total rent paid.

So if you are an owner of commercial real estate or you rent commercial real estate, please review your specific facts scenario, the applicable rules and adjust your billing/payments if necessary.