LONG-TERM RATES
This rate is for a year and can be modified for shorter terms; i.e.:
6 month plus one day rate is yearly rental rate times 1.25;
3 mo. rate is the yearly rate times 1.5 plus 11.0% tax;
SEASONAL RATES
This is a vacation rental for a furnished unit and:
Is taxed if for less than 6 months plus one day;
May include averaged utility allowances;
Typically includes all household items; and,
On townhomes/single families, utility costs will be added.
It wastes considerable time to negotiate for pricing leverage by inappropriately applying terms for price vs. the actual proposed rental conditions.
LENGTH OF RENTAL TERM
Home and Condo Owners Associations set minimum rental periods.
Brevard County regulates min. 3-mo. rentals in residential housing.
Look on website index for more information on these subjects – Thank you!
There is a 5% TOURIST DEVELOPMENT TAX ON RENTALS
IT'S NOT JUST A GOOD IDEA IT'S THE LAW
Lisa Cullen, C.F.C.Brevard County Tax Collector, Tourist Development Section
400 South Street, 6th Floor PO Box 2500 Titusville, FL 32781-2500
400 South Street, 6th Floor PO Box 2500 Titusville, FL 32781-2500
Phone: (321) 264-6915 Fax:(321)264-6792,
Website: www.brevardtaxcollector.com
WHAT IS THE TOURIST DEVELOPMENT TAX?
The Tourist Development Tax is a 5% tax on the total rental amount collected from every person or other party who rents, leases, or lets for consideration living quarters or accommodation in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, or condominiums for a period of 6 months or less. According to Florida Law (F.S. 125.0104), exercising this privilege, which is subject to taxation, and the requirements and conditions of that taxation are set forth by the State of Florida, as well as various County Governments within the State unless exempt under the provisions of Chapter (212. F..S.) The responsibility for the collection and enforcement of this Tax was assigned to the Brevard County Tax Collector, who has prepared this brochure to assist the public in understanding, and complying with their Tourist Development Tax responsibilities as property owners.
WHERE DOES THE MONEY GO?
The use of the revenue collected from the Tourist Development Tax is regulated by Florida Statute (F.S. 125.0104). The law requires that the monies shall be placed in the county tourist development trust fund of the respective county. The revenue from the Tourist Development Tax benefits our tourism industry and is governed by Florida Law and Brevard County Code Chapter 102,"Taxation," Article III, as authorized by (F.S.125.0104).
WHO MUST PAY?
Any person who rents or leases any accommodation for six months or less must collect from the tenant, State Sales Tax and Tourist Development Tax along with the rent payment. This tax applies to hotels, motels, apartment buildings, single or multi-family dwellings, mobile home parks and vessels.
WHO IS EXEMPT?
Anyone who has entered into a bona fide written lease in excess of six months is exempt from Sales Tax and Tourist Development Tax on the rent payments. If there is not a written agreement, the owner is required to collect and remit the State Sales Tax and Tourist Development Tax for the first six months. The seventh month and every month thereafter will be exempt provided the renter continues to reside at the same location.
Anyone who is exempt from paying State Sales Tax is also exempt from the Tourist Development Tax. These classifications include full-time students, active duty military personnel, churches and non-profit organizations that have a sales tax exemption number from the Florida Department of Revenue. Contact the Tax Collector's Office for further clarification.
COMMONLY ASKED QUESTIONS
Friends and relatives use my property during the year. Am 1 required to collect the Tourist Development Tax from them?
A. If you collect rent from them or accept any other form of compensation in lieu of rent, you will be required to file a tax return and collect Tourist Development Tax based upon the amount of rent paid, or upon the fair market value of the compensation received in lieu of rent.
A Rental Agent always handles my rental property. Do I need to apply for a Tourist Development Tax Account Number and submit monthly reports?
A. In most cases, the Rental Agent has their own Tax Account Number, and will submit your Tourist Development Tax information on a Consolidated Tax Return that includes the rental property of all their clients. However, you should be aware that you, as the property owner, are ultimately responsible for the required tax being paid. Any failure by your Rental Agent to pay the tax may result in penalties being applied against you.
If I use a Rental Agent, but also rent periodically on my own, must I have a Tourist Development Tax Account Number, and submit returns in those months that I rented the property?
A. Yes. You will need an Account Number since you will be responsible for collecting, reporting, and remitting the Tourist Development Tax during those months in which the unit was rented without the use of a Rental Agent.
AUDIT PROCEDURES’The Brevard County Tax Collector will
send written notification at least 60 days prior
to an audit. All business records must be maintained and made available to our auditors upon request in Brevard County.
ENFORCEMENT AND PENALTIES
Is the Tourist Development Tax enforced at the local level, and by whom?
A. Yes, the Tourist Development Tax is enforced and collected by the Brevard County Tax Collector.
What remedies does the Tax Collector have available if someone fails to collect the Tourist Development Tax as required, or collects the tax but does not report or remit the funds to the Tax Collector?
A. Among other statutory remedies, a Warrant can be issued and filed in Brevard County Official Records, creating a lien against your Real and/or Personal Property in Brevard County.
How often are taxes remitted?
A. Tourist Development Taxes are payable on the first of the month following the month collected from the tenants land guest. Taxes are delinquent if not remitted by the 20th of the month following the month collected. The owner/operator will receive coupons to report and remit collection to the Tax Collector of Brevard County.
What is the Collection Fee?
A. You are entitled to a collection allowance of 2.5% of the first $1,200.00 of taxes collected when remitted on time. There is NO allowance if payment is delinquent. The penalties for fraud are severe.
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