Florida Amnesty - Commercial Property Sales Tax - Expires September 30th

Florida subjects rental of commercial real estate to sales tax. The landlord is required to collect state sales tax of 6% as well as locally imposed discretionary sales surtaxes of up to an additional 1.5%. Owners are sometimes unaware of this requirement and fail to collect and remit the tax.

Generally, the owner would be liable for all uncollected tax, penalties, and interest regardless of how long ago the rental took place. However, Florida is currently offering a tax amnesty program. Under the program, penalties are eliminated and interest is reduced on the state portion of the liability if the taxpayer agrees to pay the past three years of tax. In many instances the local taxes will also qualify for amnesty but that determination must be made on a county by county basis.

Time is of the essence since the amnesty program expires at midnight September 30, 2010. To qualify, a short application must be filed and all returns and payment must be made prior to the program’s expiration.

Please call Elliott Davis state and local tax advisors Jack Schmoll at 704.808.5202 or Jason Sweatt at 864.242.2602 for additional information.