Reduction in Commercial Rent Tax and Other Benefits of Florida’s New Sales Tax Law
Originally published on April 28, 2021
Updated on October 27th, 2023
A new Florida law requiring out-of-state retailers to collect sales tax will also bring a reduction in commercial rent tax.
Under the legislation signed on April 19 by Gov. Ron DeSantis, “marketplace providers” not located in Florida must remit sales tax “when delivering tangible personal property” to consumers in the state. The law, which takes effect July 1, exempts businesses with sales under $100,000 per year in Florida.
The legislation provides a level playing field for all companies doing business in the state. Although brick-and-mortar businesses in Florida are already subject to taxes, out-of-state online businesses have not been subject to the requirement. All companies will now have the same sales tax obligations.
Florida businesses and workers will see additional benefits as well. Revenue from these tax collections will first help replenish the state’s drastically depleted unemployment trust fund. After that, the money will go toward reducing Florida’s commercial rent tax from 5.5% to 2%—a longtime target of business lobbying groups. While there’s no timetable yet on this reduction, it should provide a much-needed boost to commercial tenants and landlords.
All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
Other Posts You Might Like