Florida Legislation to Reduce the Sales Tax on Commercial Leases
Florida is the only state of the union that has a sales tax charge on the commercial leases. Finally we had made some progress thanks to the RCA of the Florida Association of Realtors and the Florida CCIM Chapter that have been lobbying this for over two years.
The legislation will reduce the sales tax on commercial leases. Florida currently requires that sales tax be collected from businesses that lease commercial property. Senator Hukill’s legislation would reduce the applicable sales tax by 1%. The reduction would provide some of the much needed financial relief to businesses that are burdened by this tax. It would also decrease the disadvantage Florida’s businesses are at compared to other states that do not charge this tax. “Florida businesses are at a distinct disadvantage compared to every other state with the burden of the commercial lease sales tax,” said Senator Hull. “Reducing the burden will allow Floridian’s to grow their businesses, create jobs and be more competitive.” The bill will be heard next in the Appropriations Subcommittee on Finance and Tax.
It is some achievement but we need to keep working on it, to eliminate this non sense tax. In the NNN leases this tax is charge on both the base rent portion and the additional rent or operating expenses portion. The operating expenses represent a pass thru and it is not income to the owner, however the State collects this portion as well; this should be completed removed.
Thanks to FAR and the Florida CCIM Chapter for having worked and keep working so diligent in this matter.
Comments(3)