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Decrease in Florida Sales Tax on Commercial Rent

Adam D. Lustig

Effective as of January 1, 2020, the Florida state sales tax rate applicable to the lease of commercial real property has decreased from 5.7% to 5.5%.  Therefore, the state will levy a 5.5% sales tax on all rent collected from commercial properties in Florida.

This new state sales tax rate, however, does not impact county surtax rates.  Because individual counties may impose a discretionary sales surtax, the surtax rate of the county where the rental property is located must be factored in when calculating the total sales tax rate.  For example, in Miami-Dade County the surtax rate is 1%.  Therefore, the combined sales tax rate on rent collected from commercial properties in Miami-Dade County is 6.5% (5.5% state sales tax + 1% Miami-Dade County surtax).

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