Many tenants are unaware that Florida imposes a specific statewide sales tax on commercial real estate leases. The tax imposed is 5.8 percent of the total rent paid. Rental payments subject to sales tax are also subject to any locally imposed discretionary sales surtax. The surtax rate is determined by the rate imposed by the county in which the property is located. Miami Dade, Hillsborough and Pinellas Counties, among others, charge an additional 1 percent resulting in a total sales tax of 6.8 percent. The sales tax is imposed on the base rent and also on amounts paid for CAM and any other amounts paid by the tenant. The tax is collected by the landlord and remitted to the taxing authorities.
The rates quoted by landlord’s never include the sales tax. It’s important that tenants be informed of the sales tax upfront so that they can budget accordingly.