On December 1, 2023, Florida’s commercial real property rent tax rate will be reduced from the current rate of 5.5% to 4.5%. Earlier this year, Florida Governor Ron DeSantis signed sales tax relief legislation providing $2.7 billion in tax breaks during the 2023-2024 fiscal year. Highlights of the plan include a reduction in the tax rate for business rentals, permanent and temporary tax exemptions and sales tax holidays.
“I will continue to push smart fiscal policy that will allow Florida families to keep more of their hard-earned money in their pockets.”
commercial real property LEase rate reduction
Effective December 1, 2023, the state tax rate for renting, leasing, or granting a license to use commercial real property in Florida will be reduced from 5.5% to 4.5%. It should be noted that any local discretionary surtax still applies.
Examples of taxable commercial real property rentals to which the rate reduction applies include commercial office or retail space, warehouses, convention and meeting rooms, and self-storage units or mini warehouses.
Temporary & permanent exemptions
Also included in the legislation are a number of temporary and permanent sales tax exemptions effective during the 2023-2024 fiscal year, including a permanent exemption for baby and toddler necessities, including cribs, playpens, strollers, safety gates, monitors, diapers and baby wipes, changing tables, clothing, and shoes.
A permanent exemption was made for oral hygiene products such as toothbrushes, toothpaste and mouthwash, as well as a temporary one year exemption on the purchase of energy star appliances and gas stoves.
Sales tax holidays
Further expanding sales tax relief, the legislation includes several sales tax holidays during which eligible items can be purchased tax-free. One such holiday is upcoming. Aligning with the second semester, a Back to School holiday will exempt the purchase of certain school supplies, clothing and shoes from January 1, 2024, through January 14, 2024.
takeaway
As described by Gov. DeSantis, it is the “largest tax relief plan in Florida’s history” and has beneficial tax breaks for businesses and individuals alike. For questions about how this legislation impacts your business, or if you would like to learn more about tax saving strategies, contact us.