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Updated over 7 years ago on . Most recent reply presented by

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55
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Ahmed Souissi
  • Rental Property Investor
  • Orlando, FL
23
Votes |
55
Posts

What is this TOURIST DEVELOPMENT TAX 6% for all rental properties

Ahmed Souissi
  • Rental Property Investor
  • Orlando, FL
Posted

My partner just received a letter from the tax collector that ask Any rental property owner is required to apply for a business tax Receipt (FKE occupational License) and pay 6% tax long term rental or short-term.!!!!  any one familiar with this information !

Please see attached picture of the letter. 

Most Popular Reply

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485
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384
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Ken Breeze
  • Investor
  • Phoenix, AZ
384
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485
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Ken Breeze
  • Investor
  • Phoenix, AZ
Replied

The world is changing and so is the ease of collecting taxes from micro-entrepreneurs and consumers. Governments and communities need to get the mullah from somewhere to pay for all the ... you fill in the blanks. And it's easiest to get it from the millions of individuals that have no lobby and just need to suck it up. That said...

It looks like Airbnb is doing a great job helping the hosts in solving what otherwise could become an entrepreneurs nightmare. They have the taxes already built in upon booking - see an example in the image below. They vary worldwide depending on city, county, region, country. So when guests pay their fees, Airbnb charges all fees and taxes and automatically channels payments to the host and the government. 

Check out "In what areas is occupancy tax collection and remittance by Airbnb available?". There are more articles on this topic where this came from. It's worth the read.

Here's a screenshot pertaining to Florida as an example:

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