As of June 1, 2024, the State of Florida reduced the state sales tax rate on commercial real property lease payments from 4.5% to 2%. All commercial leases with an occupancy period that started on or after June 1, 2024 will be impacted. The new 2% tax rate applies to both base rent and additional rent.

What if payments were made in advance of a June 1, 2024 occupancy? The new 2% rate still applies even if rent payments were paid in advance and received prior to a tenant’s June 1, 2024 occupancy.  

Be careful, however, this change to the state sales tax does not affect any local discretionary sales surtax imposed by many counties in Florida.

Please ensure that your billing and payment processes are updated to reflect this new tax rate for your commercial real estate properties.

[View source.]