Florida Transient Rental Tax (Airbnb Tax)

What is Transient Rental Tax?

Transient rental tax in Florida is a tax levied on rentals of living accommodations for a period of six months or less. The tax applies to both private property owners and businesses engaged in short-term rentals, including vacation homes, condos, and apartments. This tax is in addition to the standard sales tax and is meant to generate revenue to support local tourism and infrastructure.

Key Aspects of Transient Rental Tax

1. Tax Rate: The transient rental tax rate varies by county. The state of Florida imposes a base tax rate of 6%, but counties have the authority to levy additional local taxes. Depending on where your property is located, the total tax rate can range from 6% to over 12%.
2. Definition of a Transient Rental: For tax purposes, a transient rental is defined as a rental period of six months or less. If a tenant stays for more than six months, the rental is not subject to transient rental tax, but it may still be subject to other types of taxes.
3. Who is Liable: Property owners or managers who rent out accommodations on a short-term basis are responsible for collecting and remitting the transient rental tax. This applies to both direct rentals and rentals managed through online platforms or property management companies.

Steps to Ensure Compliance

1. Register with the Florida Department of Revenue: Before you start renting out your property, you must register with the Florida Department of Revenue to collect and remit transient rental tax. You can register online through the department’s website.
2. Determine the Correct Tax Rate: Identify the total tax rate for your county. This includes the state rate of 6% plus any applicable county surtax. The Florida Department of Revenue provides resources and tools to help you find the correct rate.
3. Collect the Tax: When you rent out your property, make sure to collect the appropriate amount of transient rental tax from your guests. This tax should be added to the rental fee and clearly communicated to the tenant.
4. File and Remit the Tax: You must file periodic tax returns with the Florida Department of Revenue and remit the collected taxes. Typically, returns are filed monthly, but some smaller operators may be permitted to file quarterly or annually. Ensure you adhere to the filing deadlines to avoid penalties.
5. Maintain Accurate Records: Keep detailed records of all rental transactions, including the amount of tax collected, rental periods, and payment receipts. Proper documentation is essential for accurate tax reporting and for resolving any potential issues during audits.
6. Stay Updated on Local Regulations: Counties may have specific rules or additional requirements related to transient rental tax. Stay informed about any local ordinances or changes in tax rates that could affect your rental business.

Common Pitfalls to Avoid

1. Inaccurate Tax Collection: Failing to collect the correct amount of tax or forgetting to include it in your rental charges can lead to compliance issues and penalties.
2. Missed Filing Deadlines: Missing deadlines for tax filings or payments can result in fines and interest charges. Set up reminders or use accounting software to stay on track.
3. Non-Compliance with Local Regulations: Each county may have different rules or additional taxes. Ensure you are aware of and compliant with all local regulations to avoid surprises.

Conclusion

Navigating Florida’s transient rental tax can be complex, but understanding and adhering to the requirements is essential for successful property management and avoiding penalties. If you need assistance in determining the amount of tax you owe and where to remit, please feel free to reach out to me.

12A-1.061 Rentals, Leases, and Licenses to Use Transient Accommodations.