This is a developing story. More later, like Monday, Feb. 4th.
I was at a recent Lake County Tourism Development Council meeting. Their budget comes from tourism development taxes of 4%, aka bed taxes, collected by hotels in the County and paid to the County Tax Collector.
But I was told that unlike many other Florida counties, they are not always collected in Lake County because the Lake County Tax Collector would not work directly with AirBNB to efficiently ensure bed taxes were collected via AirBNB reservation systems.
However, as THIS ARTICLE explains, many cities and counties are collecting it.
And the map at left shows states that are collecting sales taxes on an organized basis as of 2017, but not Florida. (The linked article below does show that Florida specifies collection, but not efficiently through AirBNB and similar services.
AirBNB has setup a system where they can collect bed and other taxes directly from the renters and pay it to the County or City officials.
And, HERE is the AirBNB page describing the taxes due in Florida, and all the Counties coordinating with them, BUT NOT LAKE COUNTY.
Now, why would I, a taxpayer advocate, worry about NOT collecting taxes.
Because it is anti-competitive and gives a cost advantage to AirBNB renters vs the hotels who pay the taxes.
It is because AirBNB competes with local hotels, who DO pay the tax. Now the hotel bed taxes don't actually go to the County or Cities. Instead they go into a Tourism Development Fund, and the purpose is then to spend that on facilities or marketing programs that attract TRAVELERS to Lake County to boost the economy. So, I watch neighbors on my canal renting out their homes to bass fishermen, but maybe not pay bed taxes to help fund marketing to attract more tourists to Lake County. They also underprice the hotels, who do have to pay the tax, which in Lake County is 4% plus the state 6% sales tax plus the 1% Local Option Sales Tax. At this point, I don't know whether some of the AirBNB renters also avoid paying the sales taxes.
Here is the Lake County Tax Collector's webpage on the tourism taxes. Basically, they just expect renters to sign up and pay it monthly, when they could be negotiating a much more efficient system with AirBNB (and similar firms).
I plan to return with info why the Tax Collector is not working directly with the providers like AirBNB. Look for an update Monday, Feb. 4th or after.
Vance Jochim
FiscalRangers@gmail.com
