NOTE:
In addition to Florida sales tax, short-term or transient rentals in Walton County for properties that are located south of the Intracoastal Waterway, are subject to Walton County Tourist Development tax, also known as “bed tax”. For rentals stays beginning on January 1, 2020, the tax rate for this tax has increased from 4% to 5%.
So keep that in mind about reports from last year that showed increases in tourism were probably based on an increase of tax collected at the higher rate. And that increases reported this year may be due to lower numbers last year due to the pandemic.
[The best measure of tourism in SoWal is occupancy levels that come from bookings of rental properties.]
Tourist Development Tax collection showed a 33.47% increase in South Walton for February 2021 compared with the previous year. Total collections for February 2021 were $1,215,402.
The Tourist Development Tax, or bed tax, is a five percent tax collected on hotels, condos and other short-term rentals. It is the best way to gauge visitation and demand trends in South Walton. The revenue supports tourism marketing and beach operations including cleaning and maintaining beaches, lifeguards, destination improvements and preservation initiatives.
Walton Co. Tourist Development Tax Rates:
Effective 3/1/21, Walton County has two seperate Tourist Development Tax districts with different tax rates depending on the location of the rental property.
If your rental property(ies) is located SOUTH of the Choctawhatchee Bay, the TDT rate that should be charged to short-term renters is 5% of the rent charged for that stay plus any required, non-refundable fees (cleaning fees, pet fees, resort fees, etc.) This is the TDT rate for the following zip codes: 32550, 32459, & 32461.
If your rental property(ies) is located NORTH of the Choctawhatchee Bay, then effective for March 2021 stays going forward, the TDT rate that should be charged to short-term renters is 2% of the rent charged for that stay plus any required, non-refundable fees (cleaning fees, pet fees, resort fees, etc.) This is the TDT rate for the following zip codes: 32462, 32439, 32578, 32435, 32455, 32433, 32539, 32464, & 32567.
Rules for Collecting and Remitting Tourist Development Tax:
Tourist Development Tax returns are due on the 1st of the month following when the rental stay occurred and delinquent if postmarked or submitted after the 20th. When the 20th falls on a weekend or county/state/federal holiday, the postmark/submittal deadline is the next business day. A collection allowance (i.e. discount) is available for those that both file and pay online and on time.
If a return is delinquent, the collection allowance is disallowed and penalty and interest will be charged. Per FL Statute, the penalty is 10% of the tax due or $50, whichever is greater. Interest accrues daily at a variable rate established by the FL Dept. of Revenue. If noncompliance continues, collection action is taken as outlined in the FL Statutes.
Managers/owners are also required to keep all records associated with rental revenue for a period of three years in accordance with generally accepted accounting principles. These records must be made available for audit upon 60 days notice from the Walton County Clerk of Court.
Exemptions from the Tourist Development Tax
If a written rental lease for terms of longer than six months was executed, that tenant is exempt from paying Tourist Development Tax. Six-month leases and month-to-month rentals are subject to the tax. If a month-to-month tenant stays longer than six months, they become exempt beginning with the seventh month based on the continuous stay.
Also, rentals made for business purposes by government-employed individuals, non-profit organizations, etc. may be exempt if certain conditions are met. Examples of tax-exempt rentals and your requirements for exempting these rentals may be obtained from the FL Department of Revenue or the Walton Co. TDT Dept.
In addition to Florida sales tax, short-term or transient rentals in Walton County for properties that are located south of the Intracoastal Waterway, are subject to Walton County Tourist Development tax, also known as “bed tax”. For rentals stays beginning on January 1, 2020, the tax rate for this tax has increased from 4% to 5%.
So keep that in mind about reports from last year that showed increases in tourism were probably based on an increase of tax collected at the higher rate. And that increases reported this year may be due to lower numbers last year due to the pandemic.
[The best measure of tourism in SoWal is occupancy levels that come from bookings of rental properties.]
Tourist Development Tax collection showed a 33.47% increase in South Walton for February 2021 compared with the previous year. Total collections for February 2021 were $1,215,402.
The Tourist Development Tax, or bed tax, is a five percent tax collected on hotels, condos and other short-term rentals. It is the best way to gauge visitation and demand trends in South Walton. The revenue supports tourism marketing and beach operations including cleaning and maintaining beaches, lifeguards, destination improvements and preservation initiatives.
Walton Co. Tourist Development Tax Rates:
Effective 3/1/21, Walton County has two seperate Tourist Development Tax districts with different tax rates depending on the location of the rental property.
If your rental property(ies) is located SOUTH of the Choctawhatchee Bay, the TDT rate that should be charged to short-term renters is 5% of the rent charged for that stay plus any required, non-refundable fees (cleaning fees, pet fees, resort fees, etc.) This is the TDT rate for the following zip codes: 32550, 32459, & 32461.
If your rental property(ies) is located NORTH of the Choctawhatchee Bay, then effective for March 2021 stays going forward, the TDT rate that should be charged to short-term renters is 2% of the rent charged for that stay plus any required, non-refundable fees (cleaning fees, pet fees, resort fees, etc.) This is the TDT rate for the following zip codes: 32462, 32439, 32578, 32435, 32455, 32433, 32539, 32464, & 32567.
Rules for Collecting and Remitting Tourist Development Tax:
Tourist Development Tax returns are due on the 1st of the month following when the rental stay occurred and delinquent if postmarked or submitted after the 20th. When the 20th falls on a weekend or county/state/federal holiday, the postmark/submittal deadline is the next business day. A collection allowance (i.e. discount) is available for those that both file and pay online and on time.
If a return is delinquent, the collection allowance is disallowed and penalty and interest will be charged. Per FL Statute, the penalty is 10% of the tax due or $50, whichever is greater. Interest accrues daily at a variable rate established by the FL Dept. of Revenue. If noncompliance continues, collection action is taken as outlined in the FL Statutes.
Managers/owners are also required to keep all records associated with rental revenue for a period of three years in accordance with generally accepted accounting principles. These records must be made available for audit upon 60 days notice from the Walton County Clerk of Court.
Exemptions from the Tourist Development Tax
If a written rental lease for terms of longer than six months was executed, that tenant is exempt from paying Tourist Development Tax. Six-month leases and month-to-month rentals are subject to the tax. If a month-to-month tenant stays longer than six months, they become exempt beginning with the seventh month based on the continuous stay.
Also, rentals made for business purposes by government-employed individuals, non-profit organizations, etc. may be exempt if certain conditions are met. Examples of tax-exempt rentals and your requirements for exempting these rentals may be obtained from the FL Department of Revenue or the Walton Co. TDT Dept.
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