Several tax changes are set to take effect in Florida on Jan. 1, 2018. They range from a new communications services tax jurisdiction to a new exemption for feminine hygiene products.
State sales tax on the rental of real property
Florida state sales tax and applicable local option discretionary sales surtax apply to the total charge for leasing, letting, renting, or granting a license to use real property such as commercial office space, retail space, self-storage units, and warehouses. As of Jan. 1, 2018, the state sales tax rate on these transactions drops from 6 to 5.8 percent.
Tax should be charged at the rate in effect when the tenant occupies, or is entitled to occupy, the space. For example, the 6 percent state sales tax rate applies for rental periods beginning prior to Jan. 1, 2018, even if rent is paid after Jan. 1. For rental periods beginning Jan. 1, 2018, or later, the 5.8 percent rate applies even if rent is paid prior to Jan. 1. Additional information.
Florida uses a bracket system to determine the tax on sales in between whole dollar amounts. The Florida Department of Revenue provides explains how the bracket system works in its Sales Tax FAQs.
New communications services tax jurisdiction
A new local jurisdiction in Palm Beach County will be established Jan. 1, 2018. The City of Westlake will have a communications services tax (CST) rate of 5.22 percent and a county surtax of 0.60 percent, for a total local CST tax rate of 6.82 percent. See additional details from the Department of Revenue.
Tampon tax exemption
“Products used to absorb menstrual flow” are exempt from sales tax under House Bill 7109 enacted this spring. Exempt products include, but aren’t limited to, menstrual cups, pantiliners, sanitary napkins, and tampons.
Tax refund on the resale of admissions to an exempt entity
HB 7019 also entitles a purchaser of an admission to a refund or credit from the Department of Revenue “for the amount of tax paid on its purchase” if he or she resells the admission “to an entity that is exempt from sales and use tax … for any reason other than sale for resale.”
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