Shareholder Matt O'Kane and Associate Samantha Duran discuss how the recent Florida Supreme Court decision that the Hillsborough County 1% transportation sales surtax is unconstitutional affects commercial landlords and property managers.
A recent Florida Supreme Court decision1 found that the Hillsborough County 1% transportation sales surtax is unconstitutional. As a result, the decision reduced the sales tax rate on commercial lease payments in Hillsborough County to 7%.
In a 4-1 decision, the Court held that the Hillsborough County charter amendment imposing the additional 1% discretionary surtax was unconstitutional. The amendment contained an elaborate directive for allocating the tax proceeds which unconstitutionally stripped the county commissioners of the authority to decide how to allocate such funds. As a result, the court struck down the entire charter amendment thereby reducing the Hillsborough County sales tax rate by 1%.
Accordingly, the new sales tax rate on Hillsborough County commercial lease payments (including base rent and additional rent) is now 7%. The sales tax on other services commonly provided by commercial landlords, such as parking, janitorial, security, and pest control services, is reduced to 7.5%. [Read more]
This is an excerpt from a blog post originally written on Lowndes Leasing Lawyers.
 Emerson v. Hillsborough County, SC19-1250 (Fla. 2021)
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