The information and filing deadlines covered below are specific to the State of Florida. If your property is located in another State please contact our office for information relating to that State.
All properties located in Florida, which are rented for periods of less than six months, must register to collect and pay Sales and Use Tax with the Florida Department of Revenue, and Tourist Development Tax to the Tax Collector for the county in which their property is located. A Hotel License should also be obtained from the State and a Local Business Tax receipt from the County.
Sales and Use Tax and Tourist Development Tax
In Florida, Sales and Use Tax and Tourist Development Tax (TDT) is payable on all short term rental income, regardless of where it is received. Your management company will usually collect and report all Sales Tax and TDT on the rentals that they handle. However, if you receive rental income in your home country you will need to collect and report the Tax on this income, either through your management company or directly yourself with the relevant authorities. If you choose to deal directly we can prepare and file the applications on your behalf to set up your accounts, and assist with the initial filings.
Unless otherwise advised, Sales & Use Tax and TDT returns must be completed monthly and submitted with your tax payment by the 20th of the month following the month being reported. Thus rental income received during June should be reported and tax paid by 20th July. A $50 penalty is payable to each authority for any late filing (even where there was no income received) and interest is also charged on any late tax payment.
Where income has been received and no tax paid a voluntary disclosure may be filed, enabling payment of the tax due without penalties being levied. Each County has their own process for this. Please contact our office for details.
Hotel License
The Florida Department of Business & Professional Regulation issues Hotel Licenses.
The Hotel License is renewed annually, due date determined for each County by the issuing agency, which means that your first license may be for a period shorter then twelve months. The application and renewal of this license is usually handled by your management company and the license should be on display in your property. We recommend that you request a copy to be held in your personal files.
If you do not have a management company and require assistance in applying for or renewing your license please contact our office.
Local Business Tax
A Local Business Tax Receipt is issued by most Tax Collectors Offices to all persons engaged in businesses located and/or operating in the County. If your property is situated within a city you may also be required to obtain a Local Business Tax Receipt from the City.
Local Business Tax receipts are renewed each September. The application and renewal of this is usually handled by your Management Company and this should be on display in your property. If required we can prepare and file the application on your behalf to set up your account.
Real Estate Tax
Real estate tax is levied on every Florida property, based on the assessed value of the property each calendar year. Bills are issued each November, and are due to be paid by March 31st the following year. Early payment discounts are available, starting at 4% if paid during November, and reduced by 1% each month until March, when the full amount billed becomes due. Tax bills still outstanding after April 1st will have additional costs and interest added to them and if not paid promptly after this date, the debt will be sold on at public auction.
If you have a US mortgage you may have an escrow account in place with your lender which you pay into each month with your mortgage payment. In this case the lender will pay the real estate tax bill when issued, to obtain the maximum discount. A copy of the bill will be mailed to you for information purposes only.
Tangible Tax
Tangible tax returns are required to be filed annually to the Property Appraisers’ office for the County in which your property is situated. The return is due to be filed by April 1st and a tangible tax bill is then issued in November. Payment is due by March 31st the following year, and as with the real estate tax bill, early payment discounts are available.
Tangible tax is levied on all items used by a business that enables them to conduct their business. In the case of a rental property this is the furniture and appliances placed in your property. Current Florida law allows an exemption of the tax on the first $25,000 worth of property, but this is not an automatic exemption. A new owner must file a timely first year return to obtain the exemption, which is then allowed each year.