The Florida Senate is proposing to reduce the state sales tax rate on commercial real property rentals again. The Senate is looking to drastically cut the rate from the current state rate of 5.7% to 4.2%! The change to the state rate on commercial rentals could go into effect as early as July 1, 2019.
The bill was just filed in the Senate on February 15, 2019. The legislative session does not officially begin until March 5, 2019, and will go until May 3, 2019. The bill will have a long way to go through for various committees as well as passing the senate and house before being signed by the governor toward the end of session if not after session has ended.
If the bill passes, this will be the third year in a row the state sales tax rate has been reduced for commercial real property rentals. The state sales tax rate on commercial rentals was originally 6% but lowered to 5.8% starting January 1, 2018. The rate was lowered again to 5.7% beginning January 1, 2019. It is important to note any county discretionary sales surtax will still apply at the full rate. In other words, there will be no reduction of the county rate based on the current language in the bill.
About the author: David Brennan is an associate attorney with Moffa, Sutton, & Donnini, P.A. His primary practice area is multistate tax controversy. David received a B.S. in Accounting and Finance, with a minor in Computer Science, from Florida State University. He worked as an accountant for a CPA firm before attending law school at Regent University. He received his Juris Doctor in 2013 and was licensed to practice law in Florida in the same year. In 2015, David earned his Masters of Laws in Taxation from Boston University. While working for the Florida Department of Revenue as a Senior Attorney, David focused sales and use tax issues. You can read his BIO HERE.
At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is Florida taxes, with a very heavy emphasis in Florida sales and use tax. We have defended Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.
AUTHORITY
Section 212.031, F.S., Tax on rental or license fee for use of real property
Rule 12A-1.070, F.A.C., Leases and Licenses of Real Property; Storage of Boats and Aircraft
ADDITIONAL ARTICLES TO READ
FLORIDA SALES TAX INFORMAL WRITTEN PROTEST, published November 17, 2018, by James Sutton, CPA, Esq.
FLORIDA SALES TAX - GBR CASE HOLDS DOR RULE INVALID, published February 10, 2019, by James Sutton, CPA, Esq. & Jeanette Moffa, Esq.
SCHOLARSHIP DONATIONS IN LIEU OF FLORIDA SALES TAX ON RENT?, published April 15, 2018, by James Sutton, CPA, Esq.
FLORIDA SALES TAX - VOLUNTARY DISCLOSURE PROGRAM, published April 9, 2018, by Jeanette Moffa, Esq.
FLORIDA FINALLY REDUCES THE SALES TAX ON COMMERCIAL RENT, published July 1, 2017, by James Sutton, CPA, Esq.
FLORIDA USE TAX AUDIT LETTER?, published June 14, 2015, by James Sutton, CPA, Esq. and Jerry Donnini, Esq.
GO TO JAIL FOR NOT PAYING FLORIDA SALES TAX?, published November 3, 2013, by James Sutton, CPA, Esq.