Due to the numerous hurricane-related loss claims in recent years in Florida, there has been uncertainty regarding whether insurance claim proceeds for lost rent on commercial rental properties should be included in your monthly Sales and Use Tax Return (Form DR-15).
According to tax regulations, sales tax applies to payments made by tenants or occupants to landlords for the use, occupancy, or right to use any real property. Insurance claim proceeds for lost rent, however, do not constitute payments made by tenants for the privilege of using or occupying the property. Therefore, these insurance proceeds are not subject to sales tax and do not need to be reported as commercial rent on Form DR-15.
If you own commercial property in Florida, and have any questions about the tax implications of owning that property, please contact a ShindelRock tax professional.
