Since 1969, Florida has imposed a sales and use tax on rental, lease or licenses
of real property. In 2024, the rate was reduced, from 4.5% on a state level to 2.0%, though alongside this state level percentage there were local surtaxes that could be added depending on the location of the property. On July 24, 2025, the Department of Revenue of Florida formally repealed the state sales tax, and local surtaxes, for specific types of property.
INCLUDED PROPERTY:
- Rentals of commercial office or retail space
- Warehouses
- Self-storage units
EXCLUDED PROPERTY:
- Rentals or leases of living, sleeping or housekeeping accommodations for six months or less (transient rentals)
- Parking or storage spaces for motor vehicles in parking lots or garages
- Docking or storage spaces for boats in boat docks or marinas
- Tie-down or storage spaces for aircraft at airports
This decision, effective October 1, 2025, impacts both tenants and property managers in different ways.
FOR PROPERTY MANAGERS:
- Sales tax must be collected if receiving payment after October 1, 2025, for any period prior to that date.
- Sales tax is NOT to be collected for any payments received before October 1, 2025, for periods after that date.
- A request for refund for sales tax collected for periods after October 1, 2025 that were collected prior to that date, can be made to the Department of Revenue.
- Tax accounts will be updated by the Department of Revenue of Florida based on the law change following the final reporting period. No special request is needed for this.
- No new Florida Tax Credit Scholarship Program credit allocations relating to commercial rentals will be issued after July 1, 2025. Credits earned from contributions from this date can be applied against sales tax due on rent or licenses fees paid before October 1, 2025.
FOR TENANTS:
- Any tenants that had paid sales tax with rent covering periods after October 1, 2025 may request a refund from the property manager.
- Review lease agreements, specifically any section referencing sales tax, as after October 1, 2025, any section referencing the sales tax will no longer apply.
To discuss how this repeal could affect your lease agreements, rental income, or compliance requirements, contact us today.
