12.5% Tax question

[maryjanelle3701]

I was informed by someone willing to rent me points that when I see a post that says "100 points at $10 pp" this does not include the 12.5% Florida tax and I would still be required to pay this upon check in. Is this correct? Can someone help me understand?

 

[Paging Tom Morrow]

That information is completely incorrect.

 

[maryjanelle3701]

thanks for the info! I appreciate the help. I am new to this and certainly feel like I have a HUGE target on my forehead!

 

[RobDoc]

I was informed by someone willing to rent me points that when I see a post that says "100 points at $10 pp" this does not include the 12.5% Florida tax and I would still be required to pay this upon check in. Is this correct? Can someone help me understand?

If any FL tax would be collected, it would be by the person renting the reservation - and they would need to forward that to the state of FL. No tax will be collected at the resort (since they are not renting the reservation to you) and unless the person you spoke with demands the tax you will not have any responsibility to pay it.

Enjoy!

 

[Mike]

..... unless the person you spoke with demands the tax you will not have any responsibility to pay it.

I would add that if they do demand the tax I would send them a separate check for that amount made payable to the State of Florida.

 

[maryjanelle3701]

thanks all. I think it is in my best interest to just find someone else to rent from!!! thanks again!

 

[cutakenta]

Our state sales tax is 6%.

 

[Mike]

Our state sales tax is 6%.

Sales tax is 6.5% (I believe it varies by county) and there is a 6% Resort tax.

 

[Plutofan]

Florida timeshares rentals are subject to the Florida sales tax and county tax. This includes DVC members renting their points. It is spelled out on the Florida website. I have had many conversations with state and county auditors along with tax professionals. This is a total different issue than should a DVC member or renter tax their chances. Everyone needs to make their own decision. There is actually a thread on the disboards that addresses this issue.

Disney does not collect the tax since they are not renting the room. They only collect and pay the sales tax on their rentals. The person renting out the room is obligated to collect the tax from the renter so Disney has no obligation. Each person has to make their own decision based upon their own situation.

 

[Plutofan]

FYI - here is the information from the state of Florida website regarding what is taxable. My point is everyone needs to make their own decision. Taking tax advise on a boards and not doing your own reserach is not recommended.

What is Taxable?
Sales tax is due at the rate of 6 percent on rental charges or room rates paid for the right to use or occupy living or sleeping accommodations. Florida law refers to these living or sleeping accommodations as “transient accommodations.”
If you rent or lease any of these types of transient accommodations, you must collect sales tax and pay it to the Department of Revenue:
• Hotel or motel
• Apartment house or any other multiple unit structure (for example: duplex, triplex, quadraplex, condominium)
• Rooming house
• Tourist or mobile home court (for example: trailer court, motor court, recreational vehicle camp, fish camp)
• Single-family dwelling
• Garage apartment
• Beach house or cottage
• Cooperatively owned apartment
• Condominium parcel
• Timeshare resort
• Mobile home
• Any other house
• Vehicle or other structure, place, or location held out to the public to be a place where living quarters or sleeping or housekeeping accommodations are provided to transient guests in exchange for payment.
• Boats with a permanent fixed location at a dock and not operated on the water away from the dock by the tenant
Rental charges include any charge for the use of items or services required to be paid as a condition of the use or possession of the accommodation.
Most counties have a discretionary sales surtax, local option tax, tourist development tax, convention development tax, or tourist impact tax on rentals of transient accommodations. More information can be found in the Discretionary Sales Surtax brochure (Form GT-800019) and on the list of surtax counties and rates (Form DR-15DSS). You can find these and other publications on our web site at www.myflorida.com/dor. For specific county rates, go to our Tax Law Library and do a search for “DOR Local Option.”
Landlords should contact us or their local county taxing agency to determine whether a county has a local tax(es) and whether you are required to report and pay this amount directly to your county or if you should report it on your sales and use tax return.
Florida Department of Revenue, Sales & Use Tax on Rental of Living or Sleeping Accommodations, Page 1
Florida Department of Revenue, Sales & Use Tax on Rental of Living or Sleeping Accommodations, Page 2
What is Exempt?
Certain leases and rentals are exempt from sales tax. The owner or owner’s representative must keep documentation to support the exempt transaction. These transactions are exempt:
• Rental charges or room rates paid by a person who has a signed, bona fide written lease for a continuous residence longer than six months. If there is no written lease, and a person has continuously resided at any one location for a period longer than six months and has paid the tax on the rental charges or room rates due at that location for the first six months, additional charges for continuous residence at that location are tax-exempt.
• Rental charges or room rates paid by a full-time student enrolled in an institution offering postsecondary education. A written statement from an official of the student’s institution, documenting that the student attends the institution full time, is proof of the student’s full-time enrollment.
• Rental charges or room rates paid by military personnel who are on active duty and are present in the community under official orders. The military personnel must provide a copy of:
�� The official orders supporting the active duty status of the military personnel and making it necessary to occupy the accommodation.
• Rental of accommodations in a migrant labor camp.
Trailer Camps,

 

[cutakenta]

Sales tax is 6.5% (I believe it varies by county) and there is a 6% Resort tax.

State sales tax is 6%. Some counties tack .5-1% on top of that but the state tax is 6%

 

[Mike]

State sales tax is 6%. Some counties tack .5-1% on top of that but the state tax is 6%

Exactly. And at WDW the sales tax is 6.5% and the resort tax is 6%.

 

[Plutofan]

Florida tax is 6% and county tax is 6% for Orange County which are where most of the DVC resorts are located. There is a .5 surplus tax until Dec 2015 which brings the total tax to 12.5%.

 

[cutakenta]

Florida tax is 6% and county tax is 6% for Orange County which are where most of the DVC resorts are located. There is a .5 surplus tax until Dec 2015 which brings the total tax to 12.5%.

No, that is not right. Orange has .5% levy. 12.5% I don't think many people would live there.

The other 6% is some kind of resort tax.

 

[Plutofan]

You can call it what you want but orange county gets 6%. The surplus is collected by Florida on line 15 (d) "amount of discretionary sales tax collected". I thought that it evently goes to the county but I could be wrong.

 

[cutakenta]

You can call it what you want but orange county gets 6%. The surplus is collected by Florida on line 15 (d) "amount of discretionary sales tax collected". I thought that it evently goes to the county but I could be wrong.

Yea it is a bed tax just like rental cars get.

 

[Plutofan]

Here is information directly from their website:

For the Tourist Development Tax Registration form click here.


WHAT IS THE TOURIST DEVELOPMENT TAX?


The Tourist Development Tax is a tax on the total payment received for the rental or lease of living quarters and accommodations in a hotel, motel, rooming house, trailer camp, condominium, apartment, multiple-unit structure, mobile home, trailer, single-family home, or any other sleeping accommodations that are rented for a period of six months or less. The authorization to levy and administer Tourist Development Taxes of up to six percent is stated in Section 125.0104, Florida Statutes, and in Chapter 212, Florida Statutes.

HOW MUCH IS THE TOURIST DEVELOPMENT TAX?


On July 18, 2006, the Orange County Board of County Commissioners increased the Tourist Development Tax rate from five percent (5%) to six percent (6%). The new rate was effective September 1, 2006.