Florida has officially passed a significant change that will directly impact commercial leasing arrangements. As part of House Bill 7031, the state will eliminate the sales tax on commercial rent beginning October 1, 2025. This change also repeals any applicable county surtaxes on commercial rents.
For landlords, tenants, and property managers, this is a welcome development that will simplify transactions and reduce costs. However, it also comes with important compliance considerations.
Key Details of the Change
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Effective Date: October 1, 2025
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What’s Changing: Florida’s state sales tax and any county surtaxes on commercial rent will no longer apply.
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Applies To: Commercial properties including office, retail, warehouse, and industrial spaces.
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Important Note: Rent paid for periods before October 1, 2025, remains subject to the current tax rates.
Filing Requirement – Zero Returns Still Required
Although the sales tax is being eliminated, businesses are still required to file a zero return with the Florida Department of Revenue for the period beginning October 1, 2025, and beyond. This filing confirms that no sales tax is due, and it remains a mandatory compliance step.
What Landlords & Property Managers Should Do
This change affects more than just tax payments—it requires updates across your leasing and accounting processes. Landlords and property managers should:
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Review lease agreements to ensure rent schedules reflect the tax repeal.
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Update invoicing systems to distinguish between pre- and post-October rent periods.
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Prepare for zero return filing with the Florida Department of Revenue.
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Document changes carefully to maintain compliance and avoid future disputes.
How We Can Help
Our team is here to guide you through this transition. We can:
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Review and update your lease terms.
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Ensure accurate invoicing for rent periods before and after the change.
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Assist with filing zero returns.
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Provide compliance and documentation support.
Final Thoughts
The repeal of Florida’s sales tax on commercial rent is a positive shift for property owners and tenants alike, but it requires careful planning. By taking proactive steps now, landlords and managers can ensure a seamless transition and remain fully compliant.
To learn more about how our team supports property owners and managers, visit our Property Management Page
If you’d like to discuss how this change may affect your leases or have specific questions, please don’t hesitate to reach out.
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Janicsy Diaz
Property Manager
