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

4 Replies

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. 

Since the state has no income tax they have to get their pound of flesh somewhere.

@Ahmed Souissi the Osceola County Website indicates only short-term rentals must pay the 6% tax.

Is it possible the Business Tax Receipt and the 6% Tourist tax are two different things?  As in - all rental property owners must apply for the Business Tax Receipt, but only short-term rentals must pay the 6% tax? If so that is a very poorly worded notice!

Good Luck getting that sorted!

@Ahmed Souissi The 6% tourist tax applies to rentals if you rent the property for 180 days or less. Osceola county does have a local business tax receipt requirement, per the statutes:

Sec. 13-48. - Special provisions for rental living accommodations.

Persons engaging in the rental of single-family detached, duplex, triplex or multifamily rental units, whether short-term or long-term, shall obtain one (1) local business tax receipt of all such rental units under common ownership (e.g., one (1) corporation or person or the same persons or corporations owning and managing one (1) duplex and one (1) triplex rental need obtain only one (1) receipt and not separate receipts for each structure or unit).

All properties owned in your name need just one business tax receipt. Let me know if any questions.

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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