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  4. Unrelated Business Income, Sales, and Local Tax
  5. Sales and Use Tax
  6. Real Property Rental, Lease, or License

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.  Rental charges paid on or after January 1, 2019, for rental periods prior to January 1, 2019, are subject to 5.8% state sales tax, plus any applicable discretionary sales surtax.  Rental payments made prior to January 1, 2019, that entitle the tenant to occupy the real property on or after January 1, 2019, are subject to 5.7% 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 Office conducts a review of the Educational Business Activity (EBA) sales based on the Department of Revenue Guidelines for Colleges and Universities to ensure all required taxes are remitted to the Florida Department of Revenue.

Reason for Directive

Effective January 1, 2019, 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 5.8% to 5.7%, plus any applicable discretionary sales surtax.  See Florida Tax Information Publication (TIP) #18A01-14 for additional information.

The Auxiliary 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

Educational Business 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 Office no later than the 10th of every month via email (ga-aux@ad.ufl.edu).

Use the Report Sales Use Tax – Long Form or Report Sales Use Tax – Short Form to report this information.

Definitions

Educational Business Activity

Revenue-generating activity from the provision of goods and/or services.  Such activity enhances, promotes, or supports the University’s instruction, research, public service and campus support functions, and other educational and support functions in order to meet the needs of students, faculty, staff, and members of the public participating in University events and programs.

Last Reviewed

05/01/2020: reviewed content

Contacts

Educational Business Activity/Auxiliary Accounting: (352) 294-7236

Tax Services: (352) 294-7266