Tax on Rentals
 

Is it Florida law that landlords that rent homes or rooms in their house collect tax on the rentals and pay it into the State? Naturally, they would have to report any rental income on their Federal income tax.

Yes if the rental is less than 6 months and 1 day the landlord is obligated to pay state and county sales tax, they normally collect the tax from the renter.

I went to Leesburg DOR office to get started with my rental about 10 years ago and they helped me fill out the proper forms. On line, here is the link for more information. The tax will vary depending which county you're in but will be in the area of 7-8%.

Florida Dept. of Revenue -


Sales and Use Tax

Rental Sale's tax
 

The owner of the house is obligated to pay the State & County Sale's tax. Each county's sale's tax is different, so you need to check with the county the house is located in, in addition to the State. The county and State will send you a payment coupon book that you fill out each month (whether it is rented or not - it most be filled in each month) and you send it to the country and State each month with the payment due. Most people in The Villages either include the sale's tax in the rental price of the home or add it to the rental price of the home - in other words $2600 including State & County Sale's tax or $2600 plus State & County Sale's tax. It is up to the owner of the property to pay the tax - not the renter, since a renter would not know how to go about paying the tax to the State or County. If the sale's tax is not paid, the tenant and the owner of the property could be assessed large fines and penalties for every month they haven't paid it (and the State has ways to know if you are renting your home out). So, the Tenant should make sure that the owner is charging the sale's tax (or they could be liable, in addition to the owner).

Sale's tax is not due or collected for a rental more than 6 months, since it is considered a long term rental...so you do not have to register with the State or County...but if it is rented week to week, month to month or less then 6 months, then you need to register and pay the sale's tax. It is like renting a hotel or motel room...the person renting the room has to pay the sale's tax and the hotel sends the sale's tax to the State & County.

You can set up an online account with the Florida Department of Revenue and make all payments online. Also if you only rent for the winter months you can get a waiver and only report for those months. Otherwise you have to report even the months you are not renting.

Thank you Dale for a very complete explanation for Folks. I just wanted to clarify that if you're going to do a long-term rental it has to be one lease to the same party all the way through. So if you rent six months and one day to two different parties or more then you are liable for the sales tax. The last I knew it was 9% for Sumter County. 10% for Marion County. 11% for Lake County.