Delinquent tourist tax filers could get swept into Florida's tax amnesty days



Thursday, June 12, 2003

By DENISE ZOLDAN, dczoldan@naplesnews.com



Southwest Florida owners of vacation rental properties who've taken a vacation from paying tourist taxes could be given all summer to get their rental houses in proper tax order.

Collier County and Lee County commissioners approved ordinances Tuesday that tie local tourist tax amnesty days to the proposed tax amnesty days the state plans to offer. The Florida Department of Revenue is aiming to create tax amnesty days from July 1 through Oct. 31 in the hope of reeling in $75 million statewide in overdue state taxes.

If Gov. Jeb Bush signs the legislation, for the first time in 10 years, Floridians will have a chance to get right with the government without fear of retribution.

"Tax amnesty is a great opportunity for Floridians to save money on the money they owe," said David Bruns, spokesman for Department of Revenue.

Those who turn themselves in must pay the back taxes with interest but avoid paying penalties.

Local officials said they have no estimates of how many property owners have failed to register. Collier County says most likely those not in compliance are aware of the law.

"Much of this in our county would be directed toward condo owners who might rent their condos out a portion of the year and may not be aware that if they rent it out for six months or less, they need to collect the tourism tax and sales tax," said Jack Wert, tourism director for the county and director of the Naples Area Visitors and Convention Bureau.

The amnesty days would apply to all state-administered taxes except unemployment taxes. The local county commissions that levy tourist taxes on short-term lodgings had to pass ordinances to include the levies in the state's program. Lee and Collier counties' laws require anyone who rents living space for less than six months and a day to collect and submit the same 3 percent bed taxes. Hotels and motels must charge the same tax.

Also, included on the state's list of qualifying amnesty taxes are sales taxes, fuel taxes, corporate income taxes, communications service taxes, gross receipts taxes, and Florida intangible taxes. Bruns said most of the taxes are paid by Florida businesses.

The Department of Revenue anticipates Bush will either allow the legislation to become law or sign it into law within the next several days.

The Collier County ordinance that commissioners adopted Tuesday joining the amnesty program sets a Wednesday, June 18, deadline to apply for the county tourist tax amnesty.

Collier County takes in between $8 million and $9 million a year in tourist taxes. Lee County brings in $11 million. The money stays within each county and is used to renourish beaches, advertise and promote tourism and tourist attractions.

In Collier County the tourist tax revenue is paid mainly by the county's 83 hotels and 115 owners of rental properties managed by professional realty agents. Another 1,700 private property owners have registered vacation rental property with the Collier County Tax Collector's Office, officials said. Deputy Tax Collector Claude Haynes would not reveal, under the confidentiality protection of Florida Statute 213.053, how much money the county takes in from each of the three sources.

Lee County Clerk of Courts Charlie Green said about 75 percent of the tourist tax revenue comes from hotel and real estate companies. He estimated about $3 million of the money comes from the 3,500 to 4,000 individual property owners who rent their property for less than six months and a day a year.

Green thinks there are many other property owners who should be paying the taxes. His office has attempted to catch the scofflaws by watching the Internet to see who is advertising rental property; checking Homestead Exemption filings to see who is not claiming the exemption, meaning it is not their primary residence; and checking with the state to see who is paying sales tax but not paying bed taxes. The tax on short-term rentals is 9 percent, but 6 percent is a sales tax and 3 percent is the local tourist tax.

Green says the hotels and rental companies are penalized by individual property owners who fail to collect the 9 percent tax, because they can offer a 9 percent discount on the cost of a rental unit.

Green's goal is to bring those who are not paying into compliance.

"Our job is to collect taxes, not penalize someone who doesn't pay," Green said.

Under the amnesty program, people will still have to pay what they owe, but the penalty will be eliminated.


Note: Starting 01/01/2006 The local tourest tax rate has increased to 5% for a total tax of 11% for rentals under 6 months.

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