Florida Commerical Rent for Conventions and Industry Trade Shows

If you do not understand the concept of Florida commercial rent, please read this article: https://donovanniles.com/2020/12/22/florida-commercial-rent-tax/

If you do not understand the concept of Florida commercial rent on sub-leases, please read this article: https://donovanniles.com/2020/12/22/florida-commercial-rent-on-sub-leases/

When space is subleased to a convention or industry trade show in a convention hall, exhibition hall, or auditorium, the rental consideration of the prime lease is subject to tax while the sublease rental consideration is exempt. For example, if ComicCon holds a convention and subleases spaces for “booths”, ComicCon will be responsible for remitting the tax to the state or to the landlord for the prime lease, but the rent consideration from the renting of booth space will not be subject to commercial rent tax. Tax is still due on the taxable rent consideration of the prime lease even if all the space is subleased to an exempt convention or trade show.

If you sublet all the leased premises or retain only an insignificant portion of the real property, you may choose not to pay sales tax to your landlord if you register as a dealer and collect and remit all commercial rent tax due on the prime lease and sub-leases. You would then owe “use tax” on that portion of the property you retain for your own use. In this case, you must present a signed copy of your Annual Resale Certificate to your landlord. The amount you are responsible for remitting is the full $5.50 on the sub-lease plus $2.25 for the other half of the square footage for the prime lease.

If you have been collecting commercial rent and have not been remitting the correct amount of tax, you are liable for the tax due and may incur additional penalties and interest when audited. If you have been audited and are liable for commercial rent tax, we may be able to help you reduce your audit assessment and ensure all emptions are being applied. If you have not yet been audited but would like to remit tax due and avoid the risk of an audit, then a voluntary disclosure may be the option for you.

Authority

Florida Statute Sec 212.031 (Tax on rental or license fee for use of real property)

Additional Resources

Florida Department of Revenue Guide: Sales and Use Tax on Commercial Property Rental