In the State of Florida, effective October 1, 2025, the state sales tax imposed on rent or license fees for the use of real property (commercial rentals) under section 212.031, Florida Statutes (F.S.), is repealed. This means no state sales tax or discretionary sales surtax applies to rent or license fees for rental or occupancy periods beginning on or after October 1, 2025. Examples of commercial rentals subject to the repeal include rentals paid by operators to real property owners for the license to use the real property.

If you prepaid annual rent plus sales tax for periods on or after October 1, 2025, the landowner owes the operator a refund.  This refund is owed even if the landowner already remitted the sales tax to the State.  In fact, for the landowner to get a refund of the post-October 1st tax from the State, the landowner has to prove that they already refunded the tenant the sales tax paid for periods on or after October 1, 2025.

All operators in Florida should advise their accounting office/bookkeeper of this change, effective October 1, 2025.

Any further questions should be directed to the Florida Division of Revenue at fdortaxpayerservices@floridarevenue.com

If you have legal questions regarding the removal of the sales tax contact the Law Office of Jennifer Sloane, PLC, 407-599-7400, JSloane@Sloanelawoffice.com

To receive a free morning newsletter with each day’s Billboard insider articles email info@billboardinsider.com with the word “Subscribe” in the title.  Our newsletter is free and we don’t sell our subscriber list.

Paid Advertisement