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TOURIST DEVELOPMENT TAXES Section 125.0104, Florida Statutes Brief Overview Counties
are authorized to levy five separate tourist development taxes on transient rental transactions pursuant to s. 125.0104, F.S. Depending on the particular tax, the levy may be authorized by vote of the governing body or
referendum approval. Tax rates vary by county depending on a county=s eligibility to levy particular taxes; however, the absolute maximum rate is 6 percent. Generally, the revenues may be used for capital construction
of tourist-related facilities, tourist promotion, and beach and shoreline maintenance; however, the authorized uses vary according to the particular levy. Authorization to Levy
Any county may levy and impose a tourist development tax on the exercise within its boundaries of the taxable privilege. These levies require the adoption of an authorizing ordinance by a vote of the governing body.
In addition, some require referendum approval or provide the option for the tax to be approved by referendum. At least 60 days prior to the enactment of the ordinance levying the 1 or 2 percent tax pursuant
to s. 125.0104(3)(c), F.S., the county=s governing body shall adopt a resolution establishing and appointing the members of the county tourist development council and indicating the intention of the county to consider
the enactment of an ordinance levying and imposing the tax. The tourist development council, prior the enactment of the ordinance, shall prepare and submit to the county=s governing body for its approval a plan for
tourist development. The plan shall set forth the anticipated net revenue to be derived by the county for two years following the levy of the tax as well as indicate the tax district in which the tourist
development tax is proposed. In addition, the plan shall provide a list, in order of priority, of the proposed uses of the tax revenue by specific project or special use as well as the approximate cost or expense
allocation for each specific project or special use. The governing body shall adopt the county plan for tourist development as part of the ordinance levying the tax. Some limitations exist on the exercise
of this taxable privilege. First, there shall be no additional levy of a tourist development tax in any municipalities presently imposing the Municipal Resort Tax. Second, no county authorized to levy any of the
convention development taxes shall be allowed to levy more than 2 percent of tourist development tax; however, this limitation does not apply to the levy of the Professional Sports Franchise Facility Tax pursuant to s.
125.0104(3)(l), F.S., and the Duval County levy of the Additional Professional Sports Franchise Facility Tax pursuant to s. 125.0104(3)(n), F.S. A county may elect to levy and impose the tourist development
tax in a subcounty special district of the county. However, if a county elects to levy and impose the tax on a subcounty special district basis, the district shall embrace all or a significant contiguous portion of the
county. The county shall assist the Department of Revenue in identifying the rental units in the district that are subject to the tax. The effective date of the levy and imposition of the tax shall be the
first day on the second month following approval of the ordinance by vote of the governing body or referendum (depending on the particular tax), or the first day of any subsequent month as may be specified in the
ordinance. Administrative Procedures It is the intent of the Legislature that 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, roominghouse, mobile home park, recreational vehicle park, or condominium for a term of six months or less is exercising a taxable privilege.
These taxes are to be charged by the person receiving the consideration for rent or lease at the time of payment for such lease or rental. Such person is responsible for receiving, accounting for, and remitting to the
Department of Revenue any applicable tax proceeds under the provisions outlined in s. 212.03, F.S. The Department shall keep records showing the amount of taxes collected, including records disclosing the
amount of taxes collected from each county in which a tax is levied. The Department shall promulgate such rules and publish such forms as necessary to enforce these taxes. A county may exempt itself from
the requirements that the tax be remitted to the Department before being returned to the county and administered according to Chapter 212, Florida Statutes, if the county adopts an ordinance providing for local
collection and administration of the tax. Such an ordinance shall include provision for, but need not be limited to, the following:
- Initial collection of the tax to be made in the same manner as the tax imposed under Part I of Chapter 212, Florida Statutes.
- Designation of the local government
official to whom the tax shall be remitted as well as the
official's powers and duties with respect to collection and
administration of the tax.
- Requirements relating to the keeping of
appropriate books, records, and accounts by those responsible for
collecting and administering the tax.
- Provision for payment of a dealer's credit as required under Chapter 212, Florida Statutes.
- A portion of the tax collected may be retained by the county for administrative costs; however, such portion shall not exceed 3 percent of collections.
A county, collecting and administering the tax on a local basis, shall also adopt an ordinance electing either to assume all responsibility for auditing the records and accounts of dealers and assessing,
collecting, and enforcing payments of delinquent taxes, or delegate such authority to the Department. If the county elects to assume such responsibility, it shall be bound by those applicable rules promulgated by the
Department as well as those rules pertaining to the sales and use tax on transient rentals imposed by s. 212.03, F.S. The county may use the powers granted to the Department to determine the amount of tax,
penalties, and interest to be paid by each dealer and to enforce payment of such tax, penalties, and interest. If the county delegates such authority to the Department, the Department shall distribute to the county any
collections so received, less the administrative costs solely and directly attributable to auditing, assessing, collecting, processing, and enforcing payments of delinquent taxes. The Department shall audit only those
businesses in the county that it audits pursuant to Chapter 212, Florida Statutes. Reporting Requirements For each levy, the county is responsible for furnishing the
Department with a certified copy of the ordinance within 10 days after approval of such ordinance. If applicable, the county shall also notify the Department, within 10 days after approval of the ordinance by
referendum, of the time period during which the tax will be levied. Distribution of Proceeds Tax revenues, less the Department's costs of administration, shall be paid monthly to
the county which imposed the particular tax or taxes. The funds shall be placed in the county tourist development trust fund of the respective county, which shall be established by each county as a pre-condition to the
receipt of such funds. This trust fund is not subject to the 7.3 percent General Revenue Service Charge. Inquiries regarding the Department's estimation of these proceeds should be addressed to the Office
of Research and Analysis at (850) 488-2900 or Suncom 278-2900. For more information GO TO - http//fcn.state.fl.us/acir |
