On June 1, 2024, Florida's business rental tax will automatically decrease from 4.5% to 2.0% with the implementation of the Wayfair Bill of 2021. The passage of Chapter 2, Florida Statutes, adopted the concept of economic nexus related to retail sales of tangible personal property by remote sellers and marketplaces. Part of the bill included a temporary freeze on Florida's unemployment tax rate and the diversion of General Revenue Fund funds to replenish the Unemployment Compensation Trust Fund, which was significantly depleted during the pandemic. Once the trust fund reaches pre-pandemic levels, the state legislature enacted a system that will automatically reduce the state's business rental tax rate to 2.0%.
Florida is the only state in the nation that imposes a sales tax on commercial real estate leases and permits. Beginning on January 1, 2018, the Florida Legislature began reducing the tax rate from 6.0% to 5.8%. Since then, the rate has been slightly reduced several times, but due to 2023 Legislative action, the rate will not drop below 5.5% until December 1, 2023. Currently, the rate will be reduced to 2.0% effective June 1, 2024.
This rate reduction applies to state sales taxes only. Locally imposed discretionary sales taxes are in addition to the state rate of 2.0%.