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.