What is Tourist Development Tax
Okaloosa County Tourist Development Tax is payable on all short term rental income (individual bookings of less than six months). Filed monthly to the Clerk of Court’s Office, due by 1st of month; late filing penalties effective after 20th of month.
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 TDT on the rentals that they handle. However, if you receive rental income, you will need to collect and report TDT on this income either through your management company or direct to our office. If you choose to deal directly, you can make application to the Clerk of Court’s Office to set up an account online at https://okaloosatouristtax.munirevs.com/.
TDT is on the total rental charged to every person who rents, leases or lets for consideration any living quarters or accommodations in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, condominium, condominium hotel, timeshare resort, residential dwelling or campground for a term of six months or less.
Collecting and Remitting this Tax
We will require a monthly or quarterly return to be filed. A quarterly filing requires tax returns to be filed four times a year; however, the total tax paid for each quarter cannot exceed $250.00.
To compensate owners and operators for the collection of taxes from their tenants and guests, the owners/operators are entitled to keep an allowance of 2.5% of the first $1,200 of the tax due (up to a maximum of $30) provided the tourist tax is filed online. If the tax is filed in person or by mail, no allowance will apply
If a return is delinquent, the collection allowance is disallowed, and penalty and interest will be charged. Per FL Statute, the penalty is 10% of the tax due or $50, whichever is greater. Interest accrues daily at a variable rate established by the FL Dept. of Revenue.
Dealers/Owners/Managers will be required to remit gross, exempt, and taxable amounts for every unit/property they manage.
ATTENTION ALL AIRBNB, HOMEAWAY, & VRBO CUSTOMERS: Please note that Okaloosa County is NOT contracted with ANY platform including the ones mentioned above to receive taxes on your behalf. Therefore, it is your responsibility to collect & remit any Okaloosa Co. Tourist Development Tax (TDT or “bed tax”) to the Okaloosa Co. Clerk of Court & Co. Comptroller. The Florida Department of Revenue contract to collect for Okaloosa County will not continue after December 31, 2021.
We do not accept any cash payments.
How do I register my account and file my taxes?
Registration, filing, and payment can be completed through an online web portal at https://okaloosatouristtax.munirevs.com. Please be advised that failure to comply with short-term rental licensing requirements may result in additional fees, penalties, and/or a lien on your short-term rental property.
We do not accept any cash payments.
If you need assistance or have questions, please email [email protected] or call 850-651-7200 x3490.
Tourist Tax Reports/Links:
Click here to get the monthly Tourist Tax Collection Report.
Find out more about Okaloosa County Short Term Rentals at https://myokaloosa.com/bcc/short-term-rentals.
Frequently Asked Questions
WHAT IS THE OKALOOSA COUNTY TOURIST DEVELOPMENT TAX RATE?
Current District
Effective January 1, 2023, This rate will be six percent (6%).
Expanded District
On October 5, 2021, the voters in Okaloosa County voted to expand the tourist development tax district to the entire county. The “Expanded District” is the remaining area outside of the Current District. Effective January 1, 2023, This rate will be five percent (5%).
Click here to see: Tourist Tax District Map
BY WHAT AUTHORITY ARE THESE GUIDELINES ISSUED?
The Florida Local Option Tourist Development Tax, Florida Statute 125.0104 permits the Board of County Commissioners of Okaloosa County, Florida to levy a tourist development tax. Florida Statutes Chapter 212 Tax on Sales, Use, and Other Transactions authorize how the local option tax is to be administered, enforced, and audited by Okaloosa County, Florida.
Okaloosa County Ordinance 21-22, the local ordinance created the Tourist Development Council, established the tax rate collection, and identifies the taxing district within Okaloosa County and authorizes the Clerk of the Circuit Court to locally administer the tourist development tax (effective February 1, 2022 for rentals in January 2022).
HOW ARE THE MONIES USED?
The Tourist Development Department is required to promote the area and meet the following objectives below:
- Promote tourism sales and increase overall visitation through marketing and advertising of our beautiful area to the outside world, generating a maximum return on investment for the local economy. Visit destinfwb.com to learn about our destination
- Operation of Visitor Welcome Centers, Convention Center, and Film Commission
- Beach safety and funding of the Beach Safety Life Saving Program (funding of beach lifeguards) Click HERE for important tips on beach safety and the beach flag warning system.
- Special event funding
- Research and evaluation of the success of all programs and local economy
- Protection and improvements to the natural environment through funding of the artificial reef program, public beach access parks, beach trash removal, beach restoration improvements, Sea Turtle Conservation. Learn about ecotourism at destinfwb.com/explore/ecotourism-hotspots
- Ensure compliance with state statutes and local ordinances as required
WHAT FACILITIES ARE SUBJECT TO THE TOURIST DEVELOPMENT TAX?
All facilities that are rented for six months or less are subject to the 5% tourist development tax. These facilities include living quarters and accommodations in a hotel, apartment hotel, motel, resort motel, apartment motel, rooming house, tourist or trailer camp, mobile home park, condominium, cooperatively owned apartment, multiple-unit structure, single-family dwelling, beach house, cottage, or watercraft.
CAN THE HOMESTEAD EXEMPTION BE CLAIMED?
As addressed in Florida Statutes Chapter 196.061: “The rental of an entire dwelling previously claimed to be a homestead for tax purposes shall constitute the abandonment of said dwelling as a homestead and said abandonment shall continue until such dwelling is physically occupied by the owner thereof. However, such abandonment of such homestead after January 1 of any year shall not affect the homestead exemption for tax purposes for that particular year so long as this provision is not used for 2 consecutive years.”
HOW IS THE TOURIST TAX CALCULATED?
The tourist tax is calculated on the total fees and fair market value of consideration paid by the tenant for the benefit of the accommodations. All fees and consideration that are required by the tenant for the benefit of the accommodations are considered as the total rental charge and are taxable. These fees include but are not limited to room rental charges, cleaning fees, rollaway beds, and cribs.
WHO COLLECTS THIS TAX?
All owners or operators of the above listed facilities are subject to the tourist development tax. All owners or operators are required to register the facilities and collect this tax from their tenants or guests. Collected taxes are remitted to the Clerk of Circuit Court of Okaloosa County. (effective February 1, 2022 for rentals in January 2022).
WHO IS EXEMPT FROM THIS TAX?
All the above listed facilities are subject to the tourist development tax except as stipulated:
* Tenant presents Florida Consumer’s Certificate of Exemption. Payment for accommodations must be made by the holder of the exempt certificate (except federal government employees) to be considered tax exempt, even if they will be reimbursed by the exempt agency.
* Tenant and owner/operator have implemented a bona fide lease agreement for a period greater than six months continuous.
* Tenant has occupied and paid tax continuously for greater than six months the remainder of the rental period for this same tenant is tax exempt.
* As documented in the Florida Statutes for Sales and Use Tax exemptions.
HOW OFTEN ARE THESE TAXES REMITTED?
Tax return and payment are remitted monthly. A tax return is due even when no rental activity has occurred during the reporting period. The tax return and payment are due the first day of the month following collection from tenants and are considered delinquent if not postmarked by the 20th of the month following the close of the reporting period. For example, the January reporting period is from January 1 through January 31, the tax return and full payment must be postmarked no later than the February 20th. There is an exception allowable for quarterly filing where payment history is $1,000 or less of tax paid annually.
WHAT DO OWNERS AND OPERATORS OF THESE FACILITIES RECEIVE FOR COLLECTING THE TAX?
Owners and operators are compensated for their effort to collect and remit the tourist tax by receiving a collection allowance. The collection allowance is 2.5% of the first $1,200 in tax collected, provided timely filing of the tax return.
WHAT ARE THE PENALTIES FOR NONCOMPLIANCE OR LATE SUBMISSION?
Florida Statutes permit penalties and interest to be assessed on the tax receipts due to Okaloosa County when filling and/or full payment is not received by the 20th of the month. If the tax return is delinquent, the collector may be subject the following assessments:
* Collection allowance is disallowed.
* A penalty of 10% for each 30 days delinquent or fraction thereof up to a maximum of 50% of the taxes due or a minimum of $50. Zero balance returns are assessed the minimum $50 penalty.
* Florida law provides a floating rate of interest on tax returns and tax payments. The floating rate applies to underpayments and late payments. Florida Department of Revenue quotes the floating rate each January 1 and July 1. Interest charges are assessed from the date the tax return is due until full payment has been remitted.
*Consequences for failure to file a tax return are outlined in the Florida Statutes.
WHAT RECORDS ARE REQUIRED AND HOW LONG SHOULD THEY BE KEPT?
All records that substantiate all the transient rental sales including, but not limited to cash receipts, guest ledgers, general ledger, Florida Consumer’s Certificate of Exemption, sales tax payments, Federal income tax returns and lease agreements must be kept for a period not less than three years from the date the return was filed or was required to be filed, whichever is later.
WHAT IS THE PROCEDURE FOR AN AUDIT OF MY RENTAL RECORDS?
Transient rental sales and activity are subject to tax audits. Documents referenced above are a sample of the documents necessary to perform a thorough audit. The Clerk of the Circuit Court, Business Systems Department will send written notification of an audit. This notification will be submitted at least 30 days prior to any audit. In addition, the assigned auditor will telephone to confirm the audit three working days in advance.
WHERE WILL THE AUDIT OCCUR?
The owner or operator must make the records available at their place of business, if located in Okaloosa County. If the records are not immediately available in Okaloosa County, the owner or operator must return the records to Okaloosa County Clerk of the Circuit Court for examination prior to the audit date.
ADDITIONAL REGISTRATIONS THAT MAY BE REQUIRED FOR TRANSIENT RENTALS
*State of Florida
Department of Revenue
703 W 15th Street, Suite A
Panama City, FL 32401-2238
(850) 872-4165
https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx
*State of Florida
Department of Business and Professional Regulation
Division of Hotels and Restaurants
Beach Shopping Center
7946 Front Beach Road
Panama City Beach, FL 32407-4817
(850) 233-5170
(800) 370-5170
https://www.myfloridalicense.com/intentions2.asp
*Okaloosa County Tax Collector
Business Tax Receipt
1250 N Eglin Pkwy Suite 101
Shalimar, FL 32579
(850) 651-7310
https://www.okaloosatax.com/services/business-tax-receipt/
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