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News & Knowledge

Notice: Florida Commercial Lease Sales Tax Rate Reduced

December 19, 2017

By: Matthew R. O'Kane

Beginning on January 1, 2018, the State of Florida’s sales tax rate on rental payments for the lease of commercial real property will be reduced from 6.0% to 5.8% for rental payments received for occupancy periods beginning on or after January 1, 2018. Commercial landlords and management companies sending out invoices for occupancy periods beginning on or after January 1, 2018 should revise their invoice software to account for this sales tax reduction.

Note that this 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 are listed below:

CountyDiscretionary Sales Surtax Rate
Brevard County6.8%
Hillsborough County6.8%
Lake County6.8%
Orange County6.3%
Osceola County7.3%
Pinellas County6.8%
Polk County6.8%
Seminole County6.8%
Volusia County6.3%

See the Florida Department of Revenue’s Form DR-15DSS “Discretionary Sales Surtax Information for Calendar Year 2018” for information regarding other Florida counties.

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


Matthew

Matt O’Kane has a broad background in federal tax, Florida state tax, estate planning and U.S. taxation of foreign investors. He counsels clients on a broad range of federal tax issues and business planning issues from entity selection and formation to dissolutions. He advises clients on Florida state tax issues and represents clients in controversies involving the Florida Department of Revenue. He has lectured on Florida sales tax, documentary stamp tax and intangible tax. He also counsels clients on a broad range of wealth transfer issues including estates, gift and generation skipping transfer tax planning, irrevocable trust planning, charitable planning, and family limited partnerships. He also advises nonresident clients with regard to their U.S. investments.

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