F.S (3) -- Filing a return not accompanied by a tax payment is evidence of tax evasion.

Transcription

1 IT S FLORIDA LAW F.S (8)(a) -- Any person (agent or employee) who is taxable and fails or refuses to charge and collect Tourist Development Tax is held personally liable for taxes due. F.S (1) -- The purchaser of any business is personally liable for any outstanding Tourist Development Tax, interest, or penalty not remitted by the seller of the business. Outstanding Tourist Development Tax liability should be considered in the purchase price. F.S (2)(c) -- Any person or business who knowingly, and with willful intent to evade taxes, fails to file six consecutive Tourist Development Tax returns is guilty of a third degree felony. F.S (2),(5)(a) Each dealer shall secure, maintain, and keep a complete record of property leased or rented and shall make the records available for inspection upon 60 days written notification by the Tax Collector s Office of Palm Beach County. F.S (3) -- Filing a return not accompanied by a tax payment is evidence of tax evasion. F.S (1) Tourist Development Tax becomes government funds at the moment the tax is collected from the renter and shall be submitted between the first and twentieth day of the following month. Taxes are considered delinquent if submitted on or after the 21st day of the month. F.S (2) Those who unlawfully divert or convert tax monies to their own use or the benefit of others are guilty of theft of state funds. F.S (1) -- Any Florida corporation that has an outstanding tax warrant which has existed for more than three consecutive months is subject to revocation of its charter.

2 FREQUENTLY ASKED QUESTIONS Q: I rent my property on the Internet. Are Internet rentals taxable? A: Yes. Taxability is based on the location of the rental property, not the location of the financial transaction. Q: Do I have to collect Tourist Development Tax (TDT) on the cleaning fee I charge my guests? A: Yes, if the charge is mandatory. Examples include charges for cleaning, amenities, extra persons, in-room safes, refrigerators, and microwaves. Non-refundable pet fees as well as application fees (if used to offset rent) are also subject to Tourist Development Tax. Q: Do I have to pay sales tax also? A: Yes, but we do not collect the sales tax. Taxpayers are also charged Florida Sales & Use Tax by the Florida Department of Revenue. For more information on the Sales & Use Tax call, the Department of Revenue at (561) Q: My property is used by friends and relatives at times during the year. Am I required to collect Tourist Development Tax? A: Yes, if you collect rent, or accept any form of compensation in lieu of rent. Q: All my rentals are handled by a property management company. What are my Tourist Development Tax responsibilities?

3 A: If your property management company is collecting Tourist Development Tax for your property rental(s) under their number, you are not required to register and file returns. Be aware that under Florida law, property owners are ultimately responsible for Tourist Development Tax if a property manager defaults or fails to collect and/or pay taxes. Q: I have been renting for some time now and I was not aware of my responsibility to collect and pay Tourist Development Tax. What do I do? A: Contact us as soon as possible. Please be assured that we will work with you to bring your property into compliance. Application available at (561) bedtax@pbcgov.org Mailing Address: Anne M. Gannon, Constitutional Tax Collector Attention: Tourist Development Tax P. O. Box 3715 West Palm Beach, FL Revised

4 Renting your house, condo, townhouse, or a room? Everything you need to know about the Tourist Development Tax 301 North Olive Avenue, 3rd Floor West Palm Beach, FL Serving you.

5 WHO MUST PAY? Anyone who rents or leases transient accommodations (e.g. hotel, bed & breakfast, apartment, motel, townhouse, condominium, timeshare, rooming house, mobile home, single family home, beach house or cottage) for a period of six (6) months or less must pay Tourist Development Tax (TDT). GET REGISTERED! Tourist Development Tax is to be paid the month following the month the tax is collected, but first you must file a Tourist Development Tax application. After an application is submitted, the owner/operator will receive a monthly, quarterly, semi-annual, or annual tax return in order to report and pay collections to the Constitutional Tax Collector, serving Palm Beach County. KEEP YOUR RECORDS All records are to be maintained for three (3) years after a return is filed, as all records are subject to periodic audit.. The records are to include, but are not limited to guest checks, general ledger, sales tax, federal income tax returns, and leases.

6 HOW IS TOURIST DEVELOPMENT TAX CALCULATED? The Tourist Development Tax is 5% of your gross rental which is submitted to the Constitutional Tax Collector, serving Palm Beach County. GET YOUR COLLECTION ALLOWANCE: The owner/operator is entitled to a collection allowance of 2.5% of the first $1,200 (maximum $30) of the tax collected from tenants and guests, provided the tax return is postmarked or paid to the Constitutional Tax Collector, serving Palm Beach County by the 20th of the following month. COLLECTION ALLOWANCE EXAMPLE: Gross Rent Received: $8, Total Tax Collected (5%): $ Less Collection Allowance: $10.75 (2.5% of tax collected up to $30.00) Total Amount Due: $ TAX COMPLIANCE The Tax Collector s Office of Palm Beach County enforces tax compliance statutes. Written notices of audits are sent at least 60 days prior to any Tourist Development Tax audit.

7 PENALTIES FOR NON-COMPLIANCE: Late or delinquent tax returns have penalties: Loss of your collection allowance. A penalty of 10% of tax due, but not less than $ Interest is accrued based on a floating rate of interest per Florida Statute , for all late and non-payment of taxes. Rates are subject to change January 1 and July 1 of each year. Contact the Florida Department of Revenue at (561) for details. Certain situations can result in more severe penalties. The charge for a returned check is $ Sports Commission 7.00% Film Commisson 3.92% Beach Restoration 14.10% Tourist Development Council 52.47% Cultural Arts 22.51%

8 WHO BENEFITS FROM THIS TAX? We all do. Tourist Development Tax goes right back to Palm Beach County to promote and enhance tourist attractions. The Palm Beach County Tourist Development Council can provide further information on the following activities that benefit from the Tourist Development Tax: Tourism Promotion Beach Restoration Cultural Arts Film and Television Commission Professional Sports Facilities The Sports Commission Please call (561) or visit for details. Conveniently Located Service Centers Throughout Palm Beach County Downtown: 301 North Olive Ave. West Palm Beach, FL Glades: 2976 State Rd. 15 Belle Glade, FL Lake Worth: 3551 South Military Tr. Lake Worth, FL North County: 3188 PGA Blvd. Palm Beach Gardens, FL South County: 501 S. Congress Ave., Delray Beach, FL Royal Palm Beach: 200 Civic Center Way, Royal Palm Beach, FL 33411