News & Knowledge

Florida Commercial Lease Sales Tax Rate Further Reduced

Florida Commercial Lease Sales Tax Rate Further Reduced
by lowndes

March 26, 2018

By: Matthew R. O’Kane and Joaquin E. Martinez

Late Friday, Governor Rick Scott signed Senate Bill 620 into law, further reducing the State of Florida’s sales tax rate on rental payments for the lease of commercial real property.  Effective January 1, 2019, the sales tax rate for such rental payments will be reduced from 5.8% to 5.7% for rental payments received for occupancy periods beginning on or after January 1, 2019.  This will be second reduction in the last two years.

Note that the sales tax reduction does not affect the local discretionary sales surtax imposed by many Florida counties. The combined sales tax and discretionary sales surtax rate for certain Florida counties for 2018 and 2019 are listed below:

 

County 2018 2019
Brevard County 6.8% 6.7%
Hillsborough County 6.8% 6.7%
Lake County 6.8% 6.7%
Orange County 6.3% 6.2%
Osceola County 7.3% 7.2%
Pinellas County 6.8% 6.7%
Polk County 6.8% 6.2%*
Seminole County 6.8% 6.7%
Volusia County 6.3% 6.2%

 

*The half-cent discretionary surtax for schools in Polk County is scheduled to end on December 31, 2018.

For more information, contact the Tax Group or the Commercial Leasing Group at Lowndes, Drosdick, Doster, Kantor & Reed P.A.

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