Florida will permanently eliminate sales tax on the rental of commercial real property. This change applies to commercial leases of office, retail, and industrial properties. You should stop charging and collecting sales tax on commercial rent beginning with rental periods starting October 1, 2025.

Last Sales Tax Return:

• If your only Florida sales tax activity is commercial real estate rental, your September 2025 return (filed in October) will be your final return for this activity.

• If you collect sales tax on other taxable sales (e.g., retail sales or short-term rentals), you must continue to file for those activities.

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What Remains Taxable?

Some property rentals are still subject to sales tax, including:

• Short-term residential rentals (leases under 6 months unless under a written agreement)

• Vehicle parking

• Boat docking

• Aircraft hangar/storage rentals

This change only eliminates sales tax for commercial real estate rentals under section 212.031, Florida Statutes. All other taxable sales and rentals must continue to be reported and remitted as usual.

What Action Should You Take?

• Stop charging sales tax on commercial rentals for rental periods starting October 1, 2025.

• Continue to collect and remit tax for any other taxable sales or rentals as required.

• If you have questions about your specific situation, please contact our office.

We are happy to help ensure a smooth transition. Please reach out to your usual contact or reply to this email if you have any questions or need further clarification.

Thank you for your continued trust,

Your SBC-CPA Team