I have found, over the years, that a lot of people in the Villages do not pay the County (Sumter, Lake & Marion Counties which all have the tax) and State tourist tax on rentals. It amazes me that most people are very honest and would not think of not paying the Federal income taxes, but will totally ignore the law when it comes to paying the tourist tax, thinking that they can just get away with it. The tax is due on any rental that is rented for less than 6 months...just like you pay a tax when you stay in a motel/hotel. If your house is rented more than 6 months to the same person, than it is a long term rental and no tax is due. The State tax is 5% and each county has it own tax rate...Lake County is 6%. You must also get a business license from the County and a Resale Certificate for Sales tax from the State. And, you need to file monthly, whether it is rented or not.
I have heard that some people have been caught not paying the tax and have had huge fines levied on them...so they must have a way of finding out, if you don't pay it.
|