Florida's Business Rent Tax Now Less Burdensome
Florida’s business rent tax now less burdensome
TALLAHASSEE, Fla. – Jan. 2, 2018 – A drop in Florida's business rent sales tax went into effect on Jan. 1. In 2017, the state imposed a 6 percent sales tax on landlords for rent charged on commercial property.
However, that rate in 2018 has dropped to 5.8 percent, meaning thousands in savings for commercial occupiers with large footprints of leased space.
"Florida is the only state that charges this sales tax on commercial leases," notes Florida Realtors 2017 President Maria Wells. "To stay competitive with other states and online retailers, we must reduce the business rent tax. This tax puts the Sunshine State at a disadvantage for new business and industry."
While the 2018 drop in the business tax rate is appreciated, Wells says the business tax should be eliminated altogether. Landlords will be collecting less tax in 2018, and tenants will be paying less tax in 2019, which may result in a reduction in total occupancy costs.
The lower rate only applies to leases executed following Jan 1. The 6 percent sales tax still applies to leases put in place before Jan. 1, 2018.
Source: Orlando Business Journal (12/22/17) Aslam, Sarah
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