N O T I C E
On July 8, 2010, the Escambia County Board of County Commissioners passed Resolution R2010-117 declaring Financial Amnesty for Penalties and Interest for late payments of Tourist Development Tax by certain taxpayers.
Use the links below to learn more about this resolution and to download the necessary agreement form.
Resolution 2010-117
TDT Tax Amnesty Agreement Form
The Tourist Development Tax (TDT) is a tax on the total payment received for the rental or lease of living quarters and accommodations in a hotel, motel, rooming house, mobile home park, recreational vehicle park, condominium, apartment, multiple-unit structure, mobile home, trailer, single-family home, or any other sleeping accommodations that are rented for a period of six months or less. The authorization to levy and administer TDT of up to six percent is stated in Section 125.0104, Florida Statutes, and in Chapter 212.03, Florida Statutes. Sales and Use Tax as stated in Florida Administrative codes 12A-1.061, further clarifies the taxable rental charge to include any applicable reservation deposit and prepayments. The owner of the transient accommodation is required to collect and remit the applicable taxes due to the proper taxing authority on the total room rate or rental charge, including any amounts separately stated as deposits or prepayments.
Escambia County levies a TDT of 4% on all short-term rental income. Property owners in Escambia County are required to register with the Escambia County Clerk of Courts Finance Department and must collect and remit the tax monthly along with a completed TDT return. For Sales Tax purposes, the State of Florida also requires registration of property owners engaged in short-term rental activity. You must contact the Florida Department of Revenue to acquire the necessary registration forms for sales tax purposes.
The TDT is levied by the Escambia County Board of County Commissioners and is administered by the Escambia County Clerk of Court’s Finance Office. Under the guidelines of Florida Statutes Chapter 125.0104(3)(1), expenditures are limited to the acquisition and operation of convention centers, sports stadiums and arenas, auditoriums and museums, promotion and/or advertisement of tourism and funding of tourist and convention bureaus and tourist information centers.
In order to begin remitting the TDT to the Escambia County Clerk of Court, it is necessary for you to fill out a registration form, which will provide us with the required information to set up your account. It is not necessary for you to have your Federal Employer Identification Number or sales tax account number at this time, although, you will need to provide this information as soon as it is available.
For further information or to obtain a TDT registration form, please contact our office.
Who pays this Tourist Development Tax?
The tax is paid by tenants or guests who rent or lease transient accommodations subject to the TDT.
Who collects this tax?
All owners and/or managers (“Dealers”) of the above-mentioned facilities have the responsibility to collect the TDT from their tenants or guests and remit them to the Escambia County Clerk of the Circuit Court’s Finance Office.
How often are these taxes remitted?
These taxes are remitted to the Escambia County Clerk of Court depending upon the taxpayer’s reporting period. This period may be monthly, quarterly, semi-annually, or annually; consistent with your filing status with the Florida Department Of Revenue. These taxes are due on the first of the month following collection from tenants and guests, and are considered delinquent if not postmarked by the 20th of the month. Dealers must file a tax return based on their reporting period, even if no rental receipts were collected during that period. Click here for the Escambia County return form and instructions.
What do dealers receive for collecting this tax?
If the TDT return is postmarked on or before the 20th of the month following the collection month, the Dealers receive a collection allowance as compensation for collecting the tax. The collection allowance is 2.5% of the first $1,200.00 of taxes collected up to a maximum of $30.00.
What is the role of property managers?
If a property manager handles your property, the property manager may have their own TDT account and will submit the TDT payments for all their clients in a consolidated return. You should verify this with your property manager. In addition to the consolidated return, all property managers are required to provide an itemized list of all properties and rental amounts collected each month. However, you should be aware that as the property owner, you are ultimately responsible for the payment of the taxes. Any failure by your property manager to pay the tax may result in penalties being applied against you, as the property owner. If a property manager handles your property, but you also directly rent the property yourself, you are responsible for submitting TDT returns for the taxes you collect from these rentals. You will need an individual TDT account on which to report these rentals.
What are the penalties for noncompliance or late submissions?
Penalties are assessed at the rate of 10% of the taxes due for each 30 days or fraction thereof up to a maximum of 50% of the taxes due or $50.00 whichever is greater.
Interest is assessed at a variable rate that is updated on January 1 and July 1 of each year. This rate is calculated on a daily basis.
The collection allowance is not allowed for late submission or noncompliance.
The charge for a dishonored check is based on the current rate established by Escambia County Ordinance/Resolution and/or Florida Statutes. Also, the collection allowance will be disallowed and penalties and interest will be assessed at the stated rates if payment is not received on or before the delinquent date of the month in which the tax is due. Excessive returned checks will result in the requirements to submit future tax, penalty and interest payments in cash or by money order.
Fraud is dealt with very severely, in accordance with the provisions and to the full extent of Florida Law.
Are TDT Tax Returns subject to an audit and if so, what records are required?
All TDT records must be retained for five years and made available for an audit at the place of business, within Escambia County. Records shall include, but not be limited to, financial statements, guest folios, general ledgers, sales tax payments, federal income tax returns, and leases, and tax exempt forms.
I own property located in Navarre Beach that I occasionally rent on a short-term basis. Who do I pay taxes to?
Up until June 1, 2006, Escambia County was paid the tourist development taxes on property owned on Navarre Beach. After June 1, 2006, all tourist development taxes on Navarre Beach property is payable to Santa Rosa County.
When is my TDT return due?
The TDT return is due on the 1st of the following calendar month and must be postmarked on or before the 20th of the following calendar month for which the liability applies (June rental is due July 1—must be postmarked by July 20th).
Am I required to remit returns even though I may not rent my beach house for the winter months?
Per Florida Statutes, you must file a return even though no monies were collected (a zero return).
I sometimes rent my condo for a couple of weeks out of the year. Because it is a condo and not a house I do not have to collect and remit taxes do I?
According to Florida Statute 212 transient accommodations means any living quarters or sleeping accommodations in any hotel, motel, condo, apartment, campground, trailer park, rooming house, etc. For a more definitive listing please review the statute.
If I rent a motel room to my customer for longer than three months I no longer am required to remit this tax right?
Transient rentals (short-term rentals) apply to rentals, leases, etc. of a period of time up to six (6) months. These short-term rental owners must collect and remit taxes. Any person who exclusively enters into a bona-fide written lease for a period of six months or longer does not have to remit these taxes and does not need to register with the Finance Department.
What can I claim as an exemption on my TDT return?
If a tax exemption certificate were presented at the time of rental, the individual or company, etc. would be exempt. It is important that the owner make a copy of this exemption to keep for their records. If a person continuously resides at one location for a period longer than six months, that person is exempt. Other examples include full-time students enrolled in an institution offering post-secondary education with proof of status from institution, military personnel on active duty providing written orders, rentals by governmental entities (i.e., city, county, municipality, etc.), governmental employees and representatives of exempt organizations that provide proper exemption certification and do not use the transient accommodations for personal use, and charitable organizations’ representatives with proper exemption certification and are subject to the “method of payment” restrictions or have the charges directly billed to the charitable organization. Please refer to Florida Statute 212 for a more detailed explanation of exemptions.
How much can I claim on the collection allowance?
The collection allowance lets the taxpayer keep a portion of the money that must be remitted for submitting the return in a timely manner. The collection allowance is 2.5% of total tax due up to $30.00, if the return is postmarked by the 20th of the month following collection.
If I have an agent handling my short-term rentals do both the agent and I have to remit returns?
Your agent may collect taxes and remit returns on your behalf. Even though there is a written agreement between the property owner and the agent, the property owner still remains responsible for the tax obligation if the agent fails to collect and remit these taxes.
I previuosly owned a bed and breakfast in another county, but I was able to remit all taxes directly to the State. Why do I have to remit some taxes to Escambia County?
Escambia County, per Florida Statutes 125 and 212 and Escambia County Ordinance 98-39, is a self-administering County of the tourist development plan and fund. This means that instead of the taxpayer remitting all taxes directly to the Florida Department of Revenue (FDOR) which in turn remits monies back to the County, that portion should be remitted directly to the County.
What are the tax funds used for?
Per Florida Statutes 125 and 212, Escambia County may use these tax monies to acquire, construct, improve, etc. publicly owned and operated convention centers, sports stadiums or arenas. Monies are used to promote and advertise tourism. Monies may be used to fund convention bureaus, tourist information centers, etc. Monies also may be used in beach improvement, maintenance, restoration, etc. For more information please review the statutes.
How much do I need to collect in taxes for both the Sales Tax and the TDT?
If your short-term rental property is located in Escambia County, you must collect 11.5%--7.5% is for the State Sales Tax and 4% is for Escambia County’s TDT.
Why does Escambia County require that I give them my bank name and account information?
Per Florida Statutes 125 and 212 and Escambia County Ordinance 89-7, the County is responsible for collection and administration of the tax and allows Escambia County to collect information it deems reasonable and neccessary. Part of the information required by Escambia County, is information on the individual’s or company’s bank account (please review registration form).
Are cleaning fees taxable?
If cleaning fees, processing fees, amenities fees or other fees appear on the guest’s bill and are a required fee for the use of the accommodation, then “yes”, those fees should be considered taxable for both State and County tax rates.
Are my tax records confidential?
Per Florida Statute Section §213.053, the details of taxpayer information is exempt from public records requests. However, the County is allowed to exchange information regarding taxpayers and businesses with the State of Florida Department of Revenue.
How does Escambia County make sure that the TDT is collected and remitted?
The Escambia County Clerk of the Circuit Court Finance Department staff is currently involved in several areas of enforcement and auditing. The staff is currently involved in locating owners who have not registered with either/or Escambia County or the State. When it is determined that a property owner is not registered or remitting taxes, the owner is contacted and requested to complete and return a registration form to the Finance Department. The owner may be assessed the taxes due plus penalties and interest at the time the registration information is sent. The local FDOR office is also contacted and given the research information on this property. It is important that the property owner be aware that FDOR and Escambia County may impose costly back taxes, interest, and penalties on property owners who do not comply with the laws and ordinances of the State and County.
Another enforcement tactic that staff is involved with is the auditing of current taxpayers in Escambia County. Per Florida Statues 125 and 212 and Escambia County Ordinance 897, the Clerk's office can and does request taxpayers to provide records to verify that revenue claimed is recorded correctly. During an audit, if it is determined that records are inaccurate, the company/individual may be assessed these back taxes plus penalty and interest fees. With this effort, administering the local TDT will be more streamlined and efficient and also be of benefit to the local tourism market.