Commercial leases and short-term residential rentals are generally subject to sales tax, and it is the tenant’s responsibility to pay it, but the landlord’s responsibility to collect and remit the tax to the Florida Department of Revenue. Other than writing the check to the landlord for the rent, including the sales tax, the tenant often forgets about the sales tax issues. However, there are areas where the tenant could still be responsible directly to the Department of Revenue, as well as areas for planning when negotiating the lease terms.
What if the landlord fails to pay the Department of Revenue?
Sales taxes are what are commonly referred to as “trust fund taxes,” meaning the person collecting the tax (here, the landlord) is holding those funds in trust for the state. Those monies are the state’s property at the time of collection, and if the landlord fails to pay it to the state, the state can then seek the taxes, penalties, and interest not only from the landlord-entity, but from its owners, officers, and employees who were responsible for paying (or failing to pay) the tax. Depending on the circumstances, criminal sanctions may also be sought.