The State of Florida is the only state in the U.S. that requires sales tax on total collected revenues of real property (including lease revenues, letting revenues, renting revenues or license to use real property revenues). Effective January 1, 2020, section 212.031 of the Florida Statutes will decrease the sales tax rate on real property from 5.7% to 5.5%. This tax does not apply to parking or storage of motor vehicles, docking or storage of boats, or tie-down or storage of aircraft. A complete list of exempt properties can be viewed HERE. Properties subject to this tax include commercial office, retail space, warehouses, and myriad other commercial property types
In Northwest, Florida, Escambia County also charges an additional 1.5% discretionary sales surtax which means applicable Escambia real properties are subject to a 7% state sales tax rate. For comparison, neighboring Okaloosa County applies a .5% surtax (6% total tax applied to real property rental/lease revenue), Santa Rosa County applies a 1.5% surtax (7% total tax applied to real property rental/lease revenue), and Bay County also applies a 1.5% surtax. In South Florida, Miami-Dade County applies a 1% surtax, resulting in a 6.5% sales tax rate on applicable real property. In Central Florida, Polk County also charges a 1% surtax.
The Florida Legislature indicates that it has not scheduled any additional decreases in real property state sales tax rates.
When consulting with your property manager or landlord, Beck Partners encourages Florida tenants to discuss state sales tax, and its collection. Beck Partners’ property management team includes a skilled accounting team in addition to responsive property managers assigned to ensure each tenant’s needs are properly addressed.