Tourist Development Tax

Current District

Effective January 1, 2023, This rate will be six percent (6%).

Expanded District

On October 5, 2021, the voters in Okaloosa County voted to expand the tourist development tax district to the entire county. The “Expanded District” is the remaining area outside of the Current District. Effective January 1, 2023, This rate will be five percent (5%).

Click here to see: Tourist Tax District Map

The Florida Local Option Tourist Development Tax, Florida Statute 125.0104 permits the Board of County Commissioners of Okaloosa County, Florida to levy a tourist development tax. Florida Statutes Chapter 212 Tax on Sales, Use, and Other Transactions authorize how the local option tax is to be administered, enforced, and audited by Okaloosa County, Florida.

Okaloosa County Ordinance 21-22, the local ordinance created the Tourist Development Council, established the tax rate collection, and identifies the taxing district within Okaloosa County and authorizes the Clerk of the Circuit Court to locally administer the tourist development tax (effective February 1, 2022 for rentals in January 2022).

The Tourist Development Department is required to promote the area and meet the following objectives below:

• Promote tourism sales and increase overall visitation through marketing and advertising of our beautiful area to the outside world, generating a maximum return on investment for the local economy. Visit destinfwb.com to learn about our destination
• Operation of Visitor Welcome Centers, Convention Center, and Film Commission
• Beach safety and funding of the Beach Safety Life Saving Program (funding of beach lifeguards) Click HERE for important tips on beach safety and the beach flag warning system.
• Special event funding
• Research and evaluation of the success of all programs and local economy
• Protection and improvements to the natural environment through funding of the artificial reef program, public beach access parks, beach trash removal, beach restoration improvements, Sea Turtle Conservation. Learn about ecotourism at destinfwb.com/explore/ecotourism-hotspots
• Ensure compliance with state statutes and local ordinances as required

All facilities that are rented for six months or less are subject to the 5% tourist development tax. These facilities include living quarters and accommodations in a hotel, apartment hotel, motel, resort motel, apartment motel, rooming house, tourist or trailer camp, mobile home park, condominium, cooperatively owned apartment, multiple-unit structure, single-family dwelling, beach house, cottage, or watercraft.

As addressed in Florida Statutes Chapter 196.061: “The rental of an entire dwelling previously claimed to be a homestead for tax purposes shall constitute the abandonment of said dwelling as a homestead and said abandonment shall continue until such dwelling is physically occupied by the owner thereof. However, such abandonment of such homestead after January 1 of any year shall not affect the homestead exemption for tax purposes for that particular year so long as this provision is not used for 2 consecutive years.”

The tourist tax is calculated on the total fees and fair market value of consideration paid by the tenant for the benefit of the accommodations. All fees and consideration that are required by the tenant for the benefit of the accommodations are considered as the total rental charge and are taxable. These fees include but are not limited to room rental charges, cleaning fees, rollaway beds, and cribs.

All owners or operators of the above listed facilities are subject to the tourist development tax. All owners or operators are required to register the facilities and collect this tax from their tenants or guests. Collected taxes are remitted to the Clerk of Circuit Court of Okaloosa County. (effective February 1, 2022 for rentals in January 2022).

All the above listed facilities are subject to the tourist development tax except as stipulated:

* Tenant presents Florida Consumer’s Certificate of Exemption. Payment for accommodations must be made by the holder of the exempt certificate (except federal government employees) to be considered tax exempt, even if they will be reimbursed by the exempt agency.

* Tenant and owner/operator have implemented a bona fide lease agreement for a period greater than six months continuous.

* Tenant has occupied and paid tax continuously for greater than six months the remainder of the rental period for this same tenant is tax exempt.

* As documented in the Florida Statutes for Sales and Use Tax exemptions.

Tax return and payment are remitted monthly. A tax return is due even when no rental activity has occurred during the reporting period. The tax return and payment are due the first day of the month following collection from tenants and are considered delinquent if not postmarked by the 20^th of the month following the close of the reporting period. For example, the January reporting period is from January 1 through January 31, the tax return and full payment must be postmarked no later than the February 20^th. There is an exception allowable for quarterly filing where payment history is $1,000 or less of tax paid annually.

Owners and operators are compensated for their effort to collect and remit the tourist tax by receiving a collection allowance. The collection allowance is 2.5% of the first $1,200 in tax collected, provided timely filing of the tax return.

Florida Statutes permit penalties and interest to be assessed on the tax receipts due to Okaloosa County when filling and/or full payment is not received by the 20^th of the month. If the tax return is delinquent, the collector may be subject the following assessments:

* Collection allowance is disallowed.

* A penalty of 10% for each 30 days delinquent or fraction thereof up to a maximum of 50% of the taxes due or a minimum of $50. Zero balance returns are assessed the minimum $50 penalty.

* Florida law provides a floating rate of interest on tax returns and tax payments. The floating rate applies to underpayments and late payments. Florida Department of Revenue quotes the floating rate each January 1 and July 1. Interest charges are assessed from the date the tax return is due until full payment has been remitted.

*Consequences for failure to file a tax return are outlined in the Florida Statutes.

All records that substantiate all the transient rental sales including, but not limited to cash receipts, guest ledgers, general ledger, Florida Consumer’s Certificate of Exemption, sales tax payments, Federal income tax returns and lease agreements must be kept for a period not less than three years from the date the return was filed or was required to be filed, whichever is later.

Transient rental sales and activity are subject to tax audits. Documents referenced above are a sample of the documents necessary to perform a thorough audit. The Clerk of the Circuit Court, Business Systems Department will send written notification of an audit. This notification will be submitted at least 30 days prior to any audit. In addition, the assigned auditor will telephone to confirm the audit three working days in advance.

The owner or operator must make the records available at their place of business, if located in Okaloosa County. If the records are not immediately available in Okaloosa County, the owner or operator must return the records to Okaloosa County Clerk of the Circuit Court for examination prior to the audit date.