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.
Your state and local tax (SALT) CPAs can guide you on the impact this law will have on your business. Please contact us if you have any questions.
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