The Florida Department of Revenue has issued a new Tax Information Publication (TIP) outlining surtax changes in accordance with Florida Statutes.
This update follows a previous change we reported on in December, when Hillsborough County’s sales tax rate was reduced to 6.5% effective January 1, 2025. With this new guidance, surtaxes that had been previously temporarily suspended are now scheduled to resume.
Effective June 1, 2025, dealers must resume collecting the following two surtaxes in Hillsborough County:
- 0.5% indigent care surtax
- 0.5% local government infrastructure surtax
In this context, a “dealer” is any business or individual responsible for collecting and remitting sales tax such as retailers, service providers, and commercial landlords.
What This Means for Your Business
Starting June 1, 2025, dealers should collect a combined rate of 7.5% in Hillsborough County, which includes:
- 6.0% state sales tax
- 0.5% school capital outlay discretionary sales surtax
- 0.5% indigent care surtax
- 0.5% local government infrastructure surtax
For commercial rental periods beginning on or after June 1, 2025, Hillsborough County dealers should collect a combined tax rate of 3.5%, which includes:
- 2.0% state sales tax on commercial rentals (Section 213.031, F.S.)
- 0.5% school capital outlay discretionary sales surtax
- 0.5% indigent care surtax
- 0.5% local government infrastructure surtax
Why Were the Taxes Temporarily Suspended?
In 2021, the Florida Supreme Court ruled that the 1% Hillsborough County transportation discretionary sales surtax was unconstitutional. In response, the 2024 Florida Legislature established procedures for how surtaxes should be handled when invalidated.
As a result, certain surtaxes were temporarily suspended under Section 212.054(9), F.S., with funds from the previously invalidated surtax used to offset the impact. This suspension lasted through May 31, 2025.
For more details, see TIP #24A01-15 from the Florida Department of Revenue.
Stay Compliant with Tax Changes
Navigating sales and surtax changes, like those now affecting Hillsborough County, requires staying current on local tax regulations and understanding their impact on your business operations.
At Rivero, Gordimer & Company, our experienced CPAs are here to help you stay compliant and confident.
From sales tax guidance to accurate financial reporting and strategic planning, we support businesses of all sizes through every tax update. Contact us to ensure your business is prepared for these surtax changes and any future regulatory shifts.
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