Although Florida doesn’t have an income tax, it does have plenty of other taxes your business may be required to pay. See below for the different types of taxes you may be subject to as a Florida Business, as researched by a Tampa Accountant.
This list of Florida taxes is expansive, which is why you should consult a Tampa Accountant before applying for any of the below! But first up: Sales and Use Tax
What is sales tax? Sales tax is a tax added to the price of taxable goods or services and collected from the purchaser at the time of sale. Florida's general sales tax rate is 6%, then you collect an additional % based on the county of the purchaser. Example: Hillsborough County has a 1.5% rate of sales tax, so if you sell taxable goods in Tampa, you must collect 7.5% at the time of sale.
What is use tax? Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase. The most common example of this is If you buy an item tax-exempt intending to resell it, and then use the item in your business or for personal use, you owe use tax.
There are many tangible items that are exempt from sales and use tax in Florida, which is why is critical that you consult a Tampa Accountant before applying for anything. Examples include clothing, groceries, medical devices, and custom software.
Whether or not the product you sell is taxable or not, you are still responsible for filing sales and use tax returns with the Florida Department of Revenue. Additionally, whether your business is big (i.e. selling on your own Shopify or Amazon) or small (i.e. selling at farmers markets), you are still responsible for filing sales tax returns.
What about Real Estate? There are a few different taxes you will need to pay if you manage or own real estate properties in Tampa or Florida.
If any of the below apply to you, please consult a Tampa Accountant, as you may be liable for collecting, remitting, and reporting sales tax as well as transient rental tax.
Rent or lease commercial real property to individuals or businesses
Manage commercial real property for individuals or businesses
Rent or lease living or sleeping accommodations to others for periods of six months or less
Manage the rental or leasing of living or sleeping accommodations belonging to others
Rent or lease parking or storage spaces for motor vehicles in parking lots or garages
Rent or lease docking or storage spaces for boats in boat docks or marinas
Rent or lease tie-down or storage spaces for aircraft at airports
Examples include rentals or leases of accommodations in hotels, motels, apartments, rooming houses/hostels, mobile home parks, RV parks, condominiums, timeshares, air BNBs, and etc. accommodations that are shorter than six months.
But what about if I am a service-based business? Does that mean I am exempt from any type of Florida Taxes?
Surprisingly, no. There are a handful of service-based businesses that are still subject to the collection of state taxes. If any of the below apply to you, please consult a Tampa Accountant, as you may be liable but always consult a Tampa Accountant before moving forward.
Pest control services for nonresidential buildings
Interior cleaning services for nonresidential buildings
Detective services
Protection services
Security alarm system monitoring services
Interior Design/Staging Services
Selling tickets to events, tradeshows, etc.
Please keep in mind that this is a guideline, and you should consult with a Tampa Tax Accountant to determine if the services your business provides should be taxed. To schedule a free tax consultation with one of our Tampa Accountants, click here!
Other Miscellaneous types of Florida Taxes that you may be subject to as a Florida Business:
Tax for selling secondhand goods (includes consignment but does not include books, gym equipment, clothing, coins, costume jewelry, motor vehicles, office furniture, pianos and a few more items)
Tax for selling salvaged scrap metals
Tax for operating vending machines (even if they belong to others)
Tax for selling prepaid phones
Tax for alterations, laundry mats, and dry cleaning service (solid waste tax)
Tax for Peer-to-Peer Car-Sharing Programs
Tax for hiring employees (Reemployment Tax)
There are more types of taxes than those listed above, but these are the most common for small businesses. It is highly recommended that you consult with a Tampa Accountant before applying for any of these through the Florida Department of Revenue. Additionally, it is important to contact a Tampa Accountant if you received any notices from FLDOR acknowledging that you are out of compliance with any types of tax liabilities.
Why Work With Taxes Tampa?
For over a decade, Taxes Tampa has sought out to be a communication-focused Tampa Accounting firm. We don’t operate on a volume-based business model which allows us to check in with our clients more than the average accountant in Tampa and offer our clients a more hands-on and advisory tax experience. We want to ensure you understand the ABCs of LLCs, Taxes, and everything in between. Contact us today for a free tax consultation with one of our Tampa Tax Accountants!
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