What facilities are subject to the Tourist Development Tax?
Living quarters and accommodations in a hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, single family dwelling, beach house, cottage, condominium, or any other sleeping accommodations that are rented for a period of six months or less. Rentals longer than six months must have a bona fide written lease or they are also subject to the tax for the first six months.
Who collects this tax and for how much?
The tax (5% of the total rental charges) shall be charged by the person receiving the consideration for the lease or rental and collected from the lessee, tenant or customer at the time of payment for the rental. The person collecting the consideration should receive, account for and remit the tax to the Broward County Tourist Development Tax Section. Rental records are subject to audit by Broward County Records, Taxes and Treasury Division.
How often are these taxes remitted?
In accordance with Florida Statute 212.11, these taxes shall be remitted to the County monthly, quarterly, semi-annually or annually. Tax payments are due on the first of the month following the months of collection from tenants or guests, and are considered delinquent if not postmarked by the 20th of that month. All owners/dealers must submit a tax return even if no taxes were collected for the month.
What is the collection allowance? Who is entitled to a collection allowance?
The collection allowance is a 2.5% deduction of tax due (maximum $30.00) intended as compensation for collection of the tax. Effective July 1, 2012, in order to receive a collection allowance, you must timely file and pay the tax electronically. You will not be entitled to a collection allowance if you file a paper return or pay the tax by cash, check or money order. Also, if you file and pay tax electronically but are late, you cannot deduct a collection allowance.
What are the penalties for noncompliance?
In accordance with Florida Statute 212.12, if a tax return is delinquent:
- The minimum penalty assessed for filing a late tax return is $50.00.
- There will be a penalty of 10% of the total tax if not more than 30 days late. An additional 10% will be added for each additional 30 day period, or fraction thereof, during which the failure continues, not to exceed a total penalty of 50% of the total tax due for each period.
- Interest will be computed based upon a variable rate adjusted semiannually by the State of Florida.
(Current rates can be found at: http://www.myflorida.com/dor/tips/)
If the owner/dealer fails to pay the tax:
- The Tax Collector may place a tax warrant lien on the property and issue a tax execution to enforce the collection.
- The Tax Collector may request a writ of garnishment be issued to subject any indebtedness due to the delinquent owner/dealer by a third person.
- The owner/dealer is guilty of violating a County Ordinance which is punishable by a fine in an amount not to exceed $500.00 or imprisonment in the county jail not to exceed 60 days This is in accordance with Florida Statute 125.69(1).
If the owner/dealer fails or refuses to charge and collect the tax from the person paying any rental or lease, the owner/dealer is in addition to being personally liable for the payment of the tax, guilty of a misdemeanor of the first degree, punishable by a term of imprisonment not to exceed one year.
This is in accordance with Florida Statute 125.0104(8)(a).
What is the procedure for an audit of my rental records?
The Broward County Tax Collector will send written notification at least 60 days prior to any audit. All tax records must be made available for an audit and be retained for three years. These records shall include, but not be limited to, guest checks, general ledgers, sales tax returns, Federal income tax returns, financial statements, bank statements, and leases.
A Tourist Development Tax Warrant Lien was placed on my property. How do I obtain a release of lien?
Tourist Development Tax Warrant Liens are recorded in Broward County Public Records. Delinquent tax, penalty and interest may be owed in addition to the amount stated on the lien. Requests for a current payoff amount must be made in writing by the property owner or authorized representative and sufficient time must be allowed for the calculation of amounts due. A release of lien will be recorded within 30 days of satisfaction of payment. Contact this office for additional information.
Where can I find out more about the rental of transient accommodations?
Is there a Tourist Development Tax Tip Hotline?
Yes! If you know of or suspect a person or business is evading the Tourist Development Tax, you can report a possible tax violation to our office and remain anonymous.
Please provide us with as much information as possible.
You can contact us by:
Mailing Address: Tourist Development Tax Section
Broward County Tax Collector
115 S. Andrews Avenue, Room A-110
Fort Lauderdale, FL 33301
The Tourist Development Tax is frequently called such names as Resort Tax, Bed Tax, Local Option Tourist Tax, Transient Rental Tax, etc. but in all cases it is still the 5% Tourist Development Tax added to short term rentals.