At the FAR (Florida Association of Realtors) Convention in August. The Realtors Commercial Alliance put forth a motion to eliminate the sales tax on ad valorem taxes (double dipping). On a commercial lease, the landlord will pass through expenses to the tenant which can and often does include property taxes. The teant then must pay sales tax on these pass through expenses which equates to tax on tax.
On Wednesday, Senator Carey Baker filed SB 228 to exempt ad valorem taxes from sales tax on rent, which would eliminate the double taxation situation. With a bill in the pipeline, we are already ahead of the game.
Rep. Frank Attkinson should be filing the bill for the House side as one of his six bill slots or as a Proposed Committee Bill. I will continiue to monitor the bill as it moves through the legislature.