Sun-Soaked Surcharges: A Guide to Taxes and Fees in the Sunshine State

Exploring the tax landscape in hospitality and leisure reveals complex responsibilities for businesses and travelers alike. Compliance with state sales tax and Tourist Development Tax is vital for Airbnb hosts and vacationers in Florida. This article navigates these obligations and offers insights for planning a Florida vacation, ensuring a well-budgeted and enjoyable trip.

Short Term Rentals (Airbnb)

Businesses or individuals offering short-term rentals, such as Airbnbs, must comply with state sales tax requirements and tangible personal property tax. A lease is a rental or license to use tangible personal property, allowing the lessee to possess or use it for a fee without transferring ownership. Tax applies to the gross proceeds from the lease of tangible personal property for the entire lease term when the lessor is an established business or part of one. Sales tax is due and payable when the lessee and lessor agree on the payment timing.

From the lessee’s perspective, renting an Airbnb accommodation entails an obligation to pay the Tourist Development Tax, the rate of which varies by county. This tax is calculated as a percentage of the total listing price, inclusive of any associated cleaning fees, for reservations lasting 182 nights (six months) or fewer. Understanding this tax is crucial for lessees to accurately budget their stay, as it adds to the overall cost of short-term rentals. This tax ensures that local governments can support tourism infrastructure and services, benefiting both visitors and the community.

Attractions

Many places of amusement, sport, or recreation, as well as venues offering the privilege of entry or stay charge admission fees in addition to collecting sales tax. Businesses that fall under this scope are required to collect sales tax on any admission of 10 cents or more. Some examples of places this applies to are:

• Amusement Parks - Walt Disney World, Busch Gardens, and Universal to name just a few, are subject to sales tax on admission tickets, along with associated fees. During holidays and at the start of the summer season, these parks often provide exclusive bundles allowing visitors to enjoy additional days at discounted rates.
• State Parks – State Parks offer diverse entrance fees based on group size, with vehicles accommodating 2-8 people receiving the most favorable rates. Larger groups may incur additional per-person fees, and certain counties may impose supplementary charges. It's essential to note that separate fees may apply for camping, tours, or equipment rentals.
• Sightseeing Tours - Taxes are applied to admission fees or lengths of stay aboard vessels for sightseeing, dinner cruises, sports, recreation, or similar activities, including fishing, except when a boat or vessel is chartered solely for fishing with a furnished crew, which is exempt. Additionally, taxes are imposed on admission fees or lengths of stay for rides on sightseeing trolley cars, buses, trains, or any amusement rides where participants typically return to the starting point.

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state, and local tax compliance and consulting for large US and global corporations.  Allyn tax professionals utilize their expertise in sales tax regulations to ensure full compliance, minimize tax liability, and expertly handle sales tax returns in every US state.

We minimize your time spent on sales tax issues by handling the details and keeping you updated on progress and findings. Additionally, we do it all with our renowned dedication to customer service.

Get in touch with us, and we'll tailor a cost-effective solution specifically for your company's needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

Contributors: Brenda Morales and Megan Bryarly

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, go to www.allynintl.com