These types of structures need to be especially mindful of the sales tax rules because, even though the two businesses have the same owner, sales tax is still due on any rental payments (or payments construed as rent) made from the business to the real estate holding company. FL is an important decision that should not be based solely upon advertisements. If you're an online business, you can connect TaxJar directly to your shopping cart, and instantly calculate sales taxes in every state. Fort Lauderdale, Suite 230, Miami-Dade fixes the rate at 7 percent. 100 West Cypress Creek Road experience. They will charge a late fee ofa minimum of $50 if 10% of Line 10 is less than $50 or 10% of the amount due on Line 10. Currently, the tax is imposed at the rate of 6 percent in every county except Miami-Dade which fixes the rate at 7 percent by reason of an add-on at the county option. 1 In specific situations, counties are authorized to levy an additional discretionary sales surtax on the charges subject to sales tax. For example a Florida commercial tenant prepaying January 2020 rent in December 2019 will pay tax on such rent at the new reduced sales tax rate of 5.5%. We read every comment! Communications Services Tax Rate Table Discretionary Sales Surtax Rate Table Local-Option Tourist Development Tax Rate Table However, as of January 1, 2019, Hillsborough County's overall sales tax has increased to 8.5%. However, most people will pay more than 5.5% because commercial rent is also subject to the local surtaxes at a rate where the building is located. Suite 330, None of the cities or local governments within Lee County collect additional local sales taxes. 33637 Click here for a larger sales tax map, or here for a sales tax table. Lee County, Florida Sales Tax Rate 2021 Up to 6.5% The Lee County Sales Tax is 0.5% A county-wide sales tax rate of 0.5% is applicable to localities in Lee County, in addition to the 6% Florida sales tax. We value your feedback! 33309 To get the full experience of this website, 8875 Hidden River Parkway may be accessed through this website. While Florida is the only state that still taxes commercial rents, there is some good news for 2020. Simplify Florida sales tax compliance! The Currently, the tax is imposed at a rate of 6 percent in every county, with the exception of Miami-Dade County. Click here for a larger sales tax map, or here for a sales tax table. All rights reserved. You can also download a Florida sales tax rate database. ACCOUNTING FOR LAWYERS, AND FEDERAL INCOME TAX." Florida requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. FL GOV SCOTT CALLS FOR PHASE OUT OF COMMERCIAL RENT SALES TAX, published January 29, 2014, by James Sutton, CPA, Esq. Counties marked with a in the list below have a county-level sales tax. The bill reduces the state sales tax rate on rental of commercial real estate from 5.5 percent to 5.4 percent, beginning January 1, 2021. This unusual tax on the owners of commercial real estate has been in effect in Florida since 1969. This rate includes any state, county, city, and local sales taxes. 2020 rates included for use while preparing your income tax deduction. In the map of Florida above, the 67 counties in Florida are colorized based on the maximum sales tax rate that occurs within that county. For example a Florida commercial tenant prepaying January 2020 rent in December 2019 will pay tax on such rent at the new reduced sales tax rate of 5.5%. please update to most recent version. A complete list of sales tax rates (as of the date of publication of this article) on commercial rent is provided below (taken directly from DOR’s website). This is the total of state, county and city sales tax rates. The Florida sales tax rate is currently %. FLORIDA SALES TAX – VOLUNTARY DISCLOSURE PROGRAM, published April 9, 2019, by Jeanette Moffa, Esq. Mr. Sutton handles audits, protest, litigation, criminal cases, revocations, collections, and consulting engagements all in the area of sales tax. The County sales tax rate is %. Suite 930, Combined with the state sales tax, the highest sales tax rate in Florida is 8.5% in the cities of Tampa, Tampa, Brandon, Riverview and Valrico (and twenty other cities). 2021 Florida Sales Tax Commercial Rent. legal advice nor the formation of an attorney-client relationship. Calculating the sales tax on commercial rent is more difficult than one would imagine. SalesTaxHandbook is a free public resource site, and is not affiliated with the United States government or any Government agency, Sales Tax Handbooks By State | Before you decide, you should review any attorney's qualifications and Specifically, Florida levies a sales tax at the rate of 5.7% for commercial rent and allows counties to levy an additional surtax that ranges from 0% to 2.5%. Fees that are refundable, such as damage deposits, are generally not subject to lodging taxes unless the deposit is kept. Otherwise, you can learn more about Mr. Sutton in his firm bio HERE. Accordingly, do not disclose any non-public, confidential information The minimum combined 2021 sales tax rate for Miami, Florida is . About the author: James Sutton is a Florida licensed CPA and attorney as well as a partner in Moffa, Sutton, & Donnini, PA. Mr. Sutton is charge of the Tampa office of the firm and practices almost exclusively in the area of Florida Sales & Use Tax Controversy. FLORIDA SALES TAX INFORMAL WRITTEN PROTESTS, published November 17, 2019, by James Sutton, CPA, Esq. 2020 rates included for use while preparing your income tax deduction. Please note that any emails or other © 2011 - 2021 - Moffa, Sutton, & Donnini, PA - All Need an updated list of Florida sales tax rates for your business? There are a total of 300 local tax jurisdictions across the state, collecting an average local tax of 1.072%. privilege. FL SALES TAX vs RESTAURANT MANAGEMENT AGREEMENTS, published October 29, 2018, by Jeanette Moffa, Esq. Short-term rentals have their own set of taxes which are normally shifted to the tenant in the lease agreement. Our partner TaxJar can manage your sales tax calculations, returns and filing for you so you don't need to worry about mistakes or deadlines. "MR. MOFFA IS A FREQUENT LECTURER AND AUTHOR ON STATE TAX TOPICS." Pasco County's sales tax has not changed and remains 7%. Effective January 1, 2018, the Florida state sales rate applicable to the lease of commercial real property will decrease from the present rate of 6% to 5.8%.The decrease only applies to the state sales tax rate and does not impact county surtax rates. The general 6 percent state-level tax was reduced to 5.8 percent for 2018. OF LAW AT STETSON UNIVERSITY COLLEGE OF LAW TEACHING STATE AND LOCAL TAX, FL Let us know in a single click. Identifying taxable rent is only the first step, however. Florida is the only state in the nation that subjects commercial rent to sales tax, which puts Florida at a competitive disadvantage when trying to get major businesses to locate in Florida. However, most people will pay more than 5.5% because commercial rent is … We represent taxpayers and business owners from the entire state of Florida. The State of Florida has imposed a sales tax on commercial rents since 1969. 32312 Florida has state sales tax of 6%, Florida's general sales and use tax rate is 6% with the following exceptions: 4% on amusement machine receipts, 5.5% on the lease or license of commercial real property, and 6.95% on electricity. Click HERE. Download our Florida sales tax database! Note: A newer version of this blog post was published December 20, 2018. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you. 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