ORLANDO, Fla. — Tenants renting commercial real estate in Central Florida will soon get a break on sales tax charged as part of their lease.


What You Need To Know

  • Starting June 1, the tax rate for renting commercial property statewide will drop from 4.5% to 2%
  • The reduction was originally scheduled to take effect on July 1
  • The tax cut will not apply to rentals for living, sleeping or accommodations for six months or less, and commercial parking or storage spaces for boats and motor vehicles

Starting June 1, the tax rate for the rental of commercial property statewide will drop from 4.5% to 2%.

The reduction was originally scheduled to take effect on July 1.

Property agent Amy Calandrino of Beyond Commercial said she believed the lower rate will generate more business, including those from out of state.

“I think it’s going to be a welcome relief for many tenants, including those beyond the state of Florida,” said Calandrino.

She said the tax cut can make a big difference, especially for those who pay large amounts for rent for their commercial properties.

“If you’re talking a hundred thousand dollars in rent, that translates to a lot of other money you can use for other things in your business or portfolio,” said Calandrino.

Mosaic Hair Studio owner Mike Van den Abbeel, who owns two different locations, said the rental property tax cut will really help small businesses owners.

“So, I think it’s important that when Tallahassee does something, that it actually benefits everyone, and not a few particular players or special interest groups,” said Van den Abbeel.

The business owner has over 50 workers and plans to open up a third shop in Winter Garden. He said rental rates are high across central Florida and paying less tax is appealing.

“The rent in Winter Garden is astronomical," Van den Abbeel said. "I believe the latest lease I heard is $50 a square foot."

The reduced sales tax rate on commercial rentals does not apply to the state sales tax rate on rentals or leases of living, sleeping or housekeeping accommodations for six months or less.

The change will also not apply to commercial parking or storage spaces for boats and motor vehicles.