August 24, 2009 by Barbara
COULD BE FEELIN’ THAT PEA …….
Dear Readers…When the Town of LBTS decided to go for the new “Vacation Rental” Ordinance 2009-19 recently, we wonder if the newly licensed abodes realize they will now be receiving a “Bed Tax” from Broward County to boot?…
According to the below information any type of “rental”property agreement for 6 months and less is subject to the tax….Are the newly licensed residences throughout town having their licenses “shared” with the County ala the recent Broward Business Tax Licenses (“Occupational licenses”) the Town said they searched out before they sent out citations for those in town who did not also have one in LBTS ?…. OUCH!….
FROM BROWARD COUNTY……..BED TAX…
‘Q. What facilities are subject to the Tourist Development Tax?
A. 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.
Q. Who collects this tax and for how much?
A. All owners and/or dealers of the facilities listed above are subject to the Tourist Development Tax and must collect these taxes (5% of the rental charges) from their tenants or guests and remit them to the Broward County Revenue Collector.
Q. How often are these taxes remitted?
A. 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 their 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.
Q. What do owners/operators receive for collecting this tax?
A. To compensate owners/dealers for their collection of this tax from their tenants or guests, the owners/dealers are entitled to an allowance of 2.5% of the first $1,200.00 in taxes collected (not to exceed $30.00), provided the tax is remitted on time.
Q. What are the penalties for noncompliance?
A. In accordance with Florida Statute 212.12, if a tax return is delinquent:
• There will be no collection allowance and a minimum penalty of $50.00 will be assessed for filing a late tax return.
• There will be a penalty of 10% of the total tax due 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: www.myflorida.com/dor/tips/)
B. There is a returned check fee of $25 for any item not exceeding $50, $30 for items exceeding $50 but not exceeding $300 and $40 or 5% of the face value (whichever is greater) for items that exceed $300 if your check, draft or money order is returned by your bank or savings and loan. This is in accordance with Florida Statute 125.0105.
C . If an owner/dealer fails to pay the tax:
• The Revenue Collector may place a tax warrant lien on the property and issue a tax execution to enforce the collection.
• The Revenue 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).
D. 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).
Q. What is the procedure for an audit of my rental records?
A. The Broward County Revenue 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.
Q. A Tourist Development Tax Warrant Lien was placed on my property. How do I obtain a release of lien?
A. 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.
Q. Where can I find more information on the rental of transient accommodations?
A. The Florida Administrative Code, 12A-1.061 Rentals, Leases, and Licenses to Use Transient Accommodations.
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 the short term rentals.
For more information contact our office at 954-357-8455, write to:
Broward County Revenue Collection Division
Tourist Development Tax Section
540 S.E. 3rd Avenue Room 202
Ft. Lauderdale, FL 33301
Or email us at: email@example.com’
more to come………..