With the Florida legislature just beginning its 2018 session, it is a good time to look back on one of the benefits that the business community reaped from the 2017 session. The 2017 legislature reduced the lease tax rate that businesses pay on commercial space. Effective January 1, 2018, the lease tax rate was reduced from 6% to 5.8%. It is not a big deal, but it makes a difference.
If you are a tenant, it is important to check your monthly bills to ensure that your tax rate has been adjusted to the new rate. On a typical $2,500 monthly lease payment, it is equivalent to a $5.00/month or $60/year rent reduction. Not a lot, but every little bit helps.
If you are a landlord, you need to adjust the rate or possibly be forced to refund the difference if the Department of Revenue reviews your returns.
For any questions about commercial tenancies, please feel free to contact Patrick Neale at Patrick Neale & Associates – www.patrickneale.com – 239-642-1485.