What is the Tourist Development Tax?
The tourist development tax is a 5% charge on the revenue
from rentals of six months or less. This tax is in addition
to the state sales tax (6.5% in Palm Beach County). The state
sales tax is sent to the Florida Department of Revenue. The
5% tourist development is sent to the Palm Beach County Tax
Collector.
Where does the money go?
The use of revenue collected from the Tourist Development
Tax is regulated by State Law (F.S. 125.0104), which requires
that the monies “shall be placed in the county tourist
development trust fund of the respective county.
Who must pay?
Any renter who resides for a period of six (6) months or less
in a facility located in Palm Beach County.
How often are these taxes remitted?
These taxes are due on the 20th of the month following the
month of collection. Payments are considered delinquent if
not postmarked by the 20th of the following month. For example
your January Tax Return must be postmarked by February 20th
to be considered timely.
What do owners and agents of these short-term
facilities receive for collecting the tax from guests?
A collection allowance of 2.5% of the tax collected when the
tax return is timely filed. There is a maximum collection
allowance of $30. The collection allowance is compensation
for keeping records, proper accounting and remitting the taxes
on a timely basis.
Which renters are exempt from the tax?
Renters who have signed a bona fide written lease in excess
of six (6) months are exempt from the tax. If there is no
lease, renters who have paid the Tourist Development Tax for
the first six months will become exempt in the seventh month
and remain exempt as long as they reside at the same location.
Anyone who is exempt from paying State Sales Tax will also
be exempt from paying the Tourist Development Tax.
If I rent to a resident of Florida or
to a Palm Beach County resident, do I have to collect the
Tourist Development Tax from them since they are not transients?
Yes, this tax is applicable to all guests who rent an accommodation
for six months or less, whether or not they are residents
of Florida or Palm Beach County.
I allow friends and relatives to use my
property during the year. Am I required to collect the Tourist
Development Tax from them?
If you collect rent from them, or accept any other form of
compensation in lieu of rent, you are required to register
with our office to collect and remit the tax, based upon the
amount of rent received, or upon the fair market value of
the compensation received in lieu of rent.
A rental agent always handles my rental
property. Do I need to apply for a Tourist Development Tax
Account and submit monthly tax returns?
The rental agent should have their own account number to report
their rental properties. However, you should be aware that
as the property owner you are ultimately responsible for the
required tax to be paid in case the rental agent fails to
do so.
Do I have to file a tax return even if
I don’t owe any tax?
Yes, Florida law requires that a tax return must be filed
for each collection period, even if no tax is due for that
period. A late-filed tax return is subject to a minimum $50.00
penalty, even if no tax is due.
What remedies does the Tax Collector
have available if someone breaks the law and does not collect
the Tourist Development Tax as required, or collects the Tax
but does not remit it?
Among other statutory remedies, a warrant may be issued and
filed in Palm Beach County Official Records, creating a lien
against their Real and/or Personal Property in Palm Beach
County.
What records must be kept?
Any business dealing in guest/tenant/transient accommodations
is responsible for maintaining records such as guest checks,
general ledgers, tax payments and federal income tax returns.
All tourist development tax records must be kept for five
years and made available for audit at the place of business.
If I rent my property, what else must
I do?
*Tangible Personal Property Tax In addition to collecting
the 5% tourist tax and the 6.5% state sales tax, an owner
is required to pay tangible personal property taxes annually
on the value of the rental furnishings. A return is filed
each year with the Property Appraiser’s Office declaring
the value of the furnishings and appliances. Any questions
about filing a tangible tax return can be directed to the
Property Appraiser’s Office at (561)355-2896. *Business
Tax If a rental unit is available for rent for one month or
less at a time, the owner is required to purchase a Palm Beach
County Business Tax Receipt from the Tax Collector’s
Office. The fee for the occupational license is $1.64 per
sleeping room with a minimum of $27.50. If your property is
located in the city limits, you may also need a city license.
Contact your city hall for more information.
What if I sell or no longer rent the
property?
If you sell or no longer rent property, please notify the
Tax Collector and the Property Appraiser immediately.
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