By Jennifer Sloane, The Law Office of Jennifer Sloane, PLC.

It’s not often that we get to warn you that your tax liability is going DOWN.  Yes, that’s right … down!

If you are an out of home operator in Florida and comply with the State laws requiring a tax payment on commercial rent paid to a lessor, you should be aware that, effective December 1, 2023, Florida’s state sales tax rate on commercial lease payments (including base rent and additional rent) will decrease from 5.5% to 4.5%. The reductions are a result of House Bill 7063, which was enacted earlier this year.  Most County discretionary tax rates have remained the same.  For example, if your leased location was in a county with a .5% discretionary tax rate and you were paying a cumulative 6% tax on the rent payments (5.5% state tax plus the .5% discretionary tax), you would now be paying a cumulative 5% tax on the rent paid (4.5% state tax plus the .5% discretionary tax).

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