(Source: South Florida Times)
MIAMI – Florida has eliminated sales tax on commercial rental properties as part of its effort to give tax relief for tenants struggling to pay the fees.
House Bill 7031 repeals the 2 percent of Florida sales tax for commercial property such as office, warehouse, storage, and retail space.
The new law takes effect on October 1, 2025, when Florida sales tax will no longer be owed on commercial rent payments.
Landlords or property managers should alert tenants to this change and remove Florida sales tax from rental and license fee invoices for commercial property tenants for all rent applicable to periods of occupancy on the effective date.
Landlords should, however, exercise caution to ensure tenants continue to pay sales tax on rent due for periods prior to October 1.
For example, if a tenant pays rent late (for instance, pays September’s rent in October) or if rent is reassessed, or recalculated, for a period of occupancy prior to October 1, sales tax remains due on those rental payments.
