Florida Legislature Drops Self-Storage Sales Tax Effective Dec. 1

Starting Dec. 1, sales tax collected in Florida on commercial real estate lease payments, including monthly self-storage rent, will drop from 5.5% to 4.5%. The reduction also applies to office, retail and warehouse rentals. The move was part of a $1.3 billion tax-relief package signed in April by Gov. Ron DeSantis.

“If rent is due on the first of the month, operators can apply the new tax on December rent,” according to a Nov. 20 email newsletter sent by the national Self Storage Association (SSA) to its members. “Operators who use an anniversary rent due date will apply the new tax rate to rents collected on or after Dec. 1, 2023.”

The new state tax rate doesn’t affect local rates, which can add .5% to 1.5% to the total amount collected, according to the SSA.

“Florida sales tax on commercial rent only applies to amounts paid as rent by commercial tenants,” according to Lowndes, a Florida-based law firm. “Sales of tangible personal property and certain services provided by commercial landlords to their tenants are subject to Florida’s 6% sale tax, which is not impacted by this rate reduction.”

Sources:
SSA Magazine Weekly 11/20/23, Florida Legislature Reduces Sales Tax on Self Storage to 4.5%
Axios, What to Know About Florida's $1.3 Billion Tax Relief Package
Lowndes, New Law Reduces Florida’s Sales Tax Rate on Commercial Rent