If you are a landlord signing new leases in 2018, remember that the state sales tax on commercial leases has dropped from 6% to 5.8%. As a result, the sales tax rate in Miami-Dade County will drop to 6.8% and in Broward it will drop to 5.8%. Although the drop in rate may not sound like much, it amounts to an estimated $60 million a year savings to businesses.
Florida is the only state in the nation that charges a sales tax on all commercial leases and Florida Realtors, Florida Chamber, International Council of Shopping Centers, Florida Ports Council, and many others have been working diligently to get the tax reduced in order to keep Florida competitive with other states. The sales tax is levied on all businesses leases, large and small, regardless of profitability and therefore disproportionally affects small businesses and start ups. Florida Realtors will continue to work with legislators to get the tax on leases reduced further.
