Real Property Rental, Lease, or License
Directive Statement
Sales tax is due at the rate in effect during the time the tenant occupies, or is entitled to occupy, the real property regardless of when the rent is paid. These rental charges are subject to 5.5% (4.5% effective December 1, 2023) state sales tax, plus any applicable discretionary sales surtax.
The decrease in the state sales tax rate for renting, leasing, letting, or granting a license to use real property (commercial rentals) does not apply to the tax imposed on parking or storage of motor vehicles, docking or storage of boats, or tie-down or storage of aircraft. All real property rentals, leases, or licenses must be clearly identified on the monthly department reporting since these sales and taxes are separately stated on the University’s filing to the Florida Department of Revenue.
Periodically, the Auxiliary Accounting Office conducts a review of the Fee-for-Service Educational Activity (FSEA) sales based on the Department of Revenue Guidelines for Colleges and Universities to ensure that required taxes are remitted to the Florida Department of Revenue.
Reason for Directive
Effective December 1, 2023, the state sales tax rate imposed under section 212.031, Florida Statutes, on the total rent charged for renting, leasing, letting, or granting a license to use real property decreases from 5.5% to 4.5%, plus any applicable discretionary sales surtax. See Florida Tax Information Publication (TIP) #23A01-20 for additional information.
The Auxiliary Accounting Office is responsible for remitting the University’s sales and use taxes on Form DR-15, the Sales and Use Tax Return.
Examples of Real Property Rentals
The following are examples of real property rentals subject to tax under Section 212.031, Florida Statutes:
- commercial office or retail space
- conference, convention, and meeting rooms
- warehouses or mini-warehouses
- self-storage units
Procedures
Fee-for-Service Educational Activity units are responsible for reporting and paying sales and use taxes on sales with external customers. Departments should submit the Sales and Use tax reports to the Auxiliary Accounting Office no later than the 10th of every month via email (ga-aux@ad.ufl.edu).
Use the Report Sales Use Tax – Long Form (for all Commercial Real Property Rentals or other sales tax rates) or Report Sales Use Tax – Short Form (sales at 6.0%, 7.0%, or 7.5% tax rates) to provide this information.
Last Reviewed
Last reviewed on 03/20/2024
Contacts
Auxiliary Accounting: (352) 294-7236
Tax Services: (352) 294-7266