Understanding the New Rent Tax Reduction in Florida: What Landlords and Tenants Need to Know

As of June 1^st, 2024, the Florida state tax on renting, leasing, letting, or granting a license to use real property has been reduced from 4.5% to 2%.

This reduction brings about several implications that landlords and tenants must be aware of to ensure compliance and fair dealings. Firstly, landlords need to carefully adjust their financial calculations and rental contracts to reflect the updated tax rate accurately. It is recommended to issue an updated statement to the tenant reflecting this change. Failure to do so could result in inadvertent overcharging of tenants, leading to potential legal complications or disputes with tenants. Conversely, tenants should vigilantly review their lease agreements to ensure that the revised tax rate is accurately reflected in their rent payments. Any discrepancies should be promptly addressed with the landlord or property management to avoid unnecessary financial strain.

Both parties are reminded to keep thorough documentation of rent payments and tax filings, as well as any communications between them to protect their rights and interests and help mitigate potential disputes or legal issues. 

For more information on this topic, please contact Yosef Shwedel.