Florida sales tax changes effective January 1, 2018
Several tax changes are set to take effect in Florida on January 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 January 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 January 1, 2018, even if rent is paid after January 1. For rental periods beginning January 1, 2018, or later, the 5.8 percent rate applies even if rent is paid prior to January 1, 2018. 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.”
Sales tax guide for Florida businesses
Our free, online guide covers all aspects of managing Florida sales tax compliance. Topics include:
- Business registration
- Collecting sales tax
- Filing sales tax returns
- State nexus obligations
- And more!
Starting May 1, 2018, businesses in Highlands County, Florida, must collect and remit a 2 percent tourist development tax.
The Highlands County tourist development tax should be reported to the Florida Department of Revenue, along with sales tax, on the Florida Sales and Use Tax Return (Form DR-15). The department will send new coupon books to Highlands County dealers who report the tourist development tax on paper; if you think you should receive one and don’t, contact the Department of Revenue. Electronic filers won’t receive a coupon book.
The rate of tax for transient rentals in Highlands County as of May 1 is 9.5 percent and comprised of the following: sales tax (6 percent), local government infrastructure surtax (1 percent), school capital outlay surtax (0.5 percent) and the tourist development tax (2 percent). Additional information.
Need more local rates in Florida? Download a free Florida sales tax table.
The tourist development tax rate on transient rental transactions in Jefferson County jumped from 2 to 3% on Nov. 1, 2017. The new combined tax rate is 10%.
The tourist development tax rate on transient rental transactions in Dixie County increased from 2 to 3%. The new combined rate is 10% as of Oct. 1, 2017.
The tourist development tax rate on transient rental transactions in Pasco County rose from 2 to 4%, for a combined rate of 11% as of Oct. 1, 2017.
A local sales and use tax rate change is set to take effect in Florida on March 1, 2017. The tourist development tax rate on transient rental transactions within Citrus County will increase from 3% to 5%, for a total transient rental tax rate of 11% (6% state sales tax, 5% local tax).
This tax applies to all charges for renting, leasing, or letting any accommodations or living quarters in Citrus County for a period of six months or less. Taxable lodging includes apartments (privately or cooperatively owned), beach houses/cottages, condominiums, garage apartments, hotels, mobile home courts, motels, multiple unit structures (e.g., duplex, triplex), and single family dwelling units. Additional information is available from the Florida Department of Revenue.
A number of local sales and use tax rate changes are set to take effect in Florida on January 1, 2017.
New Sales Tax
|County||Tax Type||Old Rate||Additional Tax||New Rate|
|Alachua County||Local Government Infrastructure Surtax||6.0%||0.5%||6.5%|
|Bay County||Local Government Infrastructure Surtax||6.5%||0.5%||7.0%|
|Brevard County||Local Government Infrastructure Surtax||6.5%||0.5%||7.0%|
|Hardee County||Tourist development tax for transient rental transactions||7.0%||2.0%||9.0%|
|Highlands County||School Capital Outlay Surtax||7.0%||0.5%||7.5%|
|Liberty County||Emergency Fire Rescue Services Surtax||7.5%||0.5%||8.0%|
|Manatee County||Local Government Infrastructure Surtax||6.5%||0.5%||7.0%|
|Marion County||Local Government Infrastructure Surtax||6.0%||1.0%||7.0%|
|Osceola County||Local Government Infrastructure Surtax||7.0%||0.5%||7.5%|
|Palm Beach County||Local Government Infrastructure Surtax||6.0%||1.0%||7.0%|
|Santa Rosa County||Local Government Infrastructure Surtax||6.5%||0.5%||7.0%|
Extended Sales Tax
Rates in the following counties will remain the same due to the extension of existing Discretionary Sales Surtaxes:
Additional information, including discretionary sales surtax expiration dates, is available through the Florida Department of Revenue.
Numerous local communications services tax (CST) rates in Florida are set to change beginning July 1, 2016. The new rates will apply to all bills issued on or after July 1, regardless of when the service was rendered.
Local CST rates include the following:
- Local communications services tax
- Local discretionary sales surtax
The July CST rate changes are the result of a sales and use tax rate change for Jackson County. Effective July 1, 2016, the combined state and local sales and use tax rate for Jackson County increases to 7.5% (6% state sales tax, 1% small county surtax, 0.5% capital outlay surtax). As a result, CST rates in Jackson County are as follows:
Numerous changes are coming to Florida local discretionary sales surtax (DSS) rates and communications services tax (CST) rates, effective January 1, 2016. Many of the local communications services tax rate changes are due to changes in discretionary sales surtax, which is included in the CST.
- Hernando County will levy a new 0.5% school capital outlay surtax, effective January 1, 2016. The combined state and local sales and use tax rate will be 6.5%.
- Johns County will levy a new 0.5% school capital outlay surtax, effective January 1, 2016 through December 31, 2025. The combined state and local sales and use tax rate will be 6.5%.
Reenacted or extended DSS
- Jackson County will reenact the 0.5% school surtax that expires on December 31, 2015, but not until July 1, 2016. The combined state and local sales and use tax rates are as follows:
- 7% for the period January 1, 2016 - June 30, 2016 (includes 1% small county surtax).
- 7.5% for the period July 1, 2016 – December 31, 2025 (includes 1% small county surtax).
- Lake County will extend its 1% infrastructure surtax through December 31, 2032. The combined state and local sales and use tax rate will continue at 7%.
- Putnam County will extend its 1% infrastructure surtax through December 31, 2032. The combined state and local sales and use tax rate will continue at 7%.
- The 0.5% charter county and regional transportation system surtax in Walton County will expire on December 31, 2015. The combined state and local sales and use tax rate will be 7% (6% state and 1% small county surtax).
CST rate changes due to local ordinance
- Columbia County (unincorporated), 5.22%
- Estero, in Lee County, 3.61%
CST rate changes due to discretionary sales surtax rate changes
- Hernando County
- Unincorporated Hernando County, 2.14%
- Brooksville, 5.52%
- Weeki Wachee, 0.40%
- Jackson County
- Unincorporated Jackson County, 2.34%
- Alford, 2.00%
- Bascom, 1.82%
- Campbellton, 5.72%
- Cottondale, 5.72%
- Graceville, 5.72%
- Grand Ridge, 5.72%
- Greenwood, 5.72%
- Jacob City, 5.72%
- Malone, 5.72%
- Marianna, 5.72%
- Sneads, 5.72%;
- St. Johns County
- Unincorporated St. Johns County, 2.14%
- Hastings, 5.52%
- Marineland, 0.70%
- Augustine, 5.52%
- Augustine Beach, 5.52%
- Walton County
- Unincorporated Walton County 1.30%
- DeFuniak Springs, 5.42%
- Freeport, 1.90%
- Paxton, 3.20%
The above CST rates apply to all bills issued on or after January 1, 2016, no matter the date of service. See Florida Tax Information Publication No. 15A19-04 for additional information on the CST changes.
Last updated, 2.1.2015: The Department of Revenue has updated the History of Local Sales Tax and Current Rates.
The Florida Department of Revenue has released discretionary sales surtax information for 2015. The notice reminds sellers in Florida to verify, collect and remit the proper amount of surtax for each transaction--on taxable sales, services, use or delivery made within each county.
The following counties have new rates beginning January 1, 2015:
- Brevard: imposes a new 0.5% surtax.
- Charlotte: extends the 1% infrastructure surtax that was set to expire on December 31, 2014.
- DeSoto: imposes a new 0.5% indigent health care surtax, for a total local rate of 1.5%. In addition, the tourist development tax, which applies to all taxable transient rental charges, increases from 2% to 3%.
- Gulf: increases the local option tourist development tax from 4% to 5%.
- Hernando: the 0.5% surtax expires on December 31, 2014. No new surtax.
- Seminole: imposes a new 1% infrastructure surtax.
Other county surtax changes:
- Escambia: extends the 1% infrastructure surtax to 2028 and the 0.5% school surtax to 2027. Both were set to expire in 2017.
- Highlands: the 1% infrastructure surtax set to expire in 2018 is extended to 2033.
- Leon: extends the 1% infrastructure surtax set to expire in 2019 to 2039; the current 0.5% surtax remains in effect until 2027, for a total rate of 1.5%.
- Monroe: the 0.5% school surtax set to expire in 2015 is extended to 2025; the current 1% surtax remains in effect until 2033, for a total rate of 1.5%.
- Orange: the 0.5% school surtax set to expire in 2015 is extended to 2025.
- Volusia: the 0.5% school surtax set to expire in 2016 is extended to 2031.
Additional information, including other county discretionary surtax rates and expiration dates, is on the Florida Department of Revenue website.
In addition to the tax rate changes described above, the Florida Department of Revenue has opted to buck the national trend and, on January 1, 2015, increase tax rates on motor fuel and diesel fuel.
The state tax rate on motor fuel will increase ever so slightly, from 17.1 cents per gallon to 17.3 cents per gallon. The inspection fee on motor fuel remains the same, at 0.125 cents per gallon.
County motor fuel tax rates vary and 2015 rates are available on the revised 2015 Florida Fuel Tax, Collection Allowance Refund, and Pollutants Tax Rate charts. Calming breathing exercises are advised prior to viewing, as the charts are quite detailed and complex.
Like motor fuel, the state tax rate on diesel fuel will jump from 17.1 to 17.3 cents per gallon. Unlike motor fuel, all counties impose the same rate, which is increasing from 14.2 to 14.3 cents per gallon. The combined state and county rate for diesel fuel will increase from 31.3 to 31.6 cents per gallon.
The state tax rate is remaining the same, at 6.9 cents per gallon.
Special rates for fuel terminals
A minimum local option tax is imposed on motor fuel collected at fuel terminals. Terminal suppliers must pay a minimum local option fuel tax of 11.1 cents per gallon and an inspection fee of 0.125 cents per gallon of motor fuel sold to licensed wholesalers. With the state fuel tax of 17.3 cents, the total motor fuel taxes collected by terminal suppliers on sales to licensed wholesalers will be 28.525 cents per gallon.
In addition to the 11.1 cents per gallon collected by the terminal suppliers, wholesalers are required to remit the local option tax rate above the minimum on motor fuel sold to retail dealers or other end-users.