Florida Tourist Development Tax

Additional 1% Tax in Areas of Critical State Concern

Under Section 125.0108, Fla. Stat., counties that create a land authority pursuant to Section 380.0663(1), F.S., are authorized to levy an additional 1% tax on transient rental facilities located within areas designated as areas of critical state concern under Chapter 380, F.S.

If more than 50% of the county’s total land area qualifies as an area of critical state concern, the county may impose the tax countywide. This additional 1% tax is levied on top of any other tourist development taxes already in effect.

The funds generated must be used to acquire land within the area of critical state concern and to offset the reduction in ad valorem (property) tax revenues resulting from those land purchases.

Designated Areas of Critical State Concern:

• Big Cypress Area (primarily in Collier County)
• Green Swamp Area (in Central Florida)
• Florida Keys Area (in South Florida)
• Apalachicola Bay Area (in Franklin County)

A current list of counties and their applicable tourist development tax rates—including this special 1% tax—is available in the Florida Department of Revenue’s Form DR-15TDT (Local Option Transient Rental Tax Rates).

Authority: Sections 125.0108 and 380.0663, Florida Statutes.

What Counts as a “Transient Rental”?

The statutory and regulatory definitions focus on both duration and nature of occupancy. A “transient rental” generally involves:

• A stay of six months or less
• Payment of consideration (rent or lease charges)
• Occupancy of a furnished or unfurnished space suitable for short-term lodging

Per Fla. Stat. § 125.0104(3)(a), taxable properties may include:

• Hotels and motels
• Apartment hotels
• Roominghouses
• Mobile home parks
• Recreational vehicle (RV) parks
• Condominiums
• Timeshare resorts

Additionally, counties may adopt ordinances extending the tax to:

• Campgrounds
• Boat slips or marinas (less common)
• Event spaces in qualifying facilities

Rental Exemptions and Long-Term Occupancy

A rental of more than six months, or where the tenant intends to establish permanent residency, is generally exempt from the TDT.

The exemption applies if the guest:

• Signs a lease agreement exceeding six months before occupancy
• Establishes permanent residency via actions such as:
  • Registering to vote
  • Obtaining a Florida driver’s license
  • Filing for homestead exemption
  • Changing their mailing address or utility billing records

Under Rule 12A-1.061(14), documentation must be retained to prove exempt status. This often becomes a key issue in audits and refund claims.

County-by-County TDT Rates and Administration: Who Collects What?

Although the Tourist Development Tax (TDT) is imposed at the county level, its collection and administration can vary dramatically depending on the county. Understanding these distinctions is critical for short-term rental operators, CPAs, and tax advisors working across Florida jurisdictions.

The Department of Revenue has issued two notices to assist in the implementation of Transient Rental Tax and Tourist Development Tax:

• Sales and Use Tax on Rental of Living or Sleeping Accommodations

• Local Option Transient Rental Tax Rates (Tourist Development Tax Rates) Form DR-15TDT

In addition, the Office of Economic and Demographic Research has published a helpful guide that also includes the food and beverage taxes for hotels and motels in each county:

• 2025 Local Option Tourist / Food and Beverage / Tax Rates in Florida’s Counties 

Who Administers the TDT: The County or the Department of Revenue?

Florida law allows each county to decide whether it will:

1. Administer the TDT locally, collecting and auditing directly, or
2. Have the Florida Department of Revenue (DOR) administer the tax on the county’s behalf

This distinction affects where businesses must register, where they file returns, and which entity conducts audits.

Counties That Self-Administer the TDT

These counties collect the tax directly and do not rely on the Florida DOR for compliance enforcement:

• Orange County (Orlando): Administered by the Orange County Comptroller’s Office
  Source: occompt.com
• Lee County: Administered by the Lee County Clerk of Court
  Source: leeclerk.org
• Escambia County: Remitted directly to the Escambia Clerk’s Office
  Source: escambiaclerk.com
• Seminole County: Remitted to Seminole County Tax Collector
  Source: seminolecounty.tax
• Indian River County: Administered by Indian River Clerk of Court
  Source: indianriverclerk.com
• Santa Rosa County: Administered by Santa Rosa County Clerk of Court
  Source: santarosaclerk.com
• Walton County: Local administration through the Walton Clerk of Court
  Source: co.walton.fl.us

In these counties, the business must register separately from DOR sales tax registration, and local audits are more common.

Counties Where the DOR Administers the TDT

In counties that do not self-administer, the Florida DOR is responsible for:

• Registration and return processing
• Issuing assessments
• Conducting audits
• Handling exemption reviews and refund claims

Taxpayers in these counties report their TDT on the same DR-15 return used for sales tax.

According to the DOR’s official brochure, “Most counties self-administer the transient rental tax. In those counties, the transient rental tax is reported and remitted directly to the county. Transient rental tax imposed in counties that do not self-administer is reported and remitted to the Department” (GT-800034).

Tourist Development Tax Rates by County (2025 Reference)

The March 2025 edition of the Tourist Development Tax Rate Chart (Form DR-15TDT), published by the Department of Revenue, provides each county’s tourist development tax rates and identifies whether tax is collected by the county or by the Department of Revenue:

For a full list of all county TDT rates, see Form DR-15TDT (March 2025 edition).

With all the local option county taxes layered on top of discretionary local surtaxes and Florida’s sales tax on transient rentals (transient rentals tax), the total tax burden on short-term rentals can be 13% or more in some areas.

Exemptions from the Tourist Development Tax: The Six-Month Rule and Residency Exceptions

While the Tourist Development Tax (TDT) applies broadly to short-term accommodations, Florida law and administrative rules carve out key exemptions—primarily based on the length of stay or the intent of the guest to establish permanent residency. These exemptions often become the subject of audits, protests, and litigation.

The Six-Month Exemption (Statutory Rule)

Under Fla. Stat. §§ 125.0104(3)(a) and 212.03(1)(a), the TDT does not apply to rentals that:

• Exceed six months, and
• Are supported by a bona fide written lease or contract executed prior to occupancy

This rule applies even if the accommodation is otherwise a transient property (hotel, apartment, or vacation rental).

To qualify:

• The lease must expressly cover a term longer than six months
• The lease must be signed prior to move-in
• The guest must not be charged on a per-day or weekly basis

If a six-month lease is not signed before occupancy, the exemption is typically denied, even if the guest stays long-term.

Declaration of Permanent Residency (Administrative Rule)

Under Rule 12A-1.061(14), F.A.C., transient rentals may be exempt from TDT if the guest demonstrates intent to establish permanent residency, even without a six-month lease.

Indicators of permanent residency may include:

• Filing for homestead exemption
• Declaring Florida as a domicile
• Obtaining a Florida driver’s license
• Registering to vote in Florida
• Submitting a declaration of permanent residency form

Supporting documents may also include:

• Utility bills in the guest’s name
• Mail forwarding change-of-address forms
• Leases or agreements referencing “residency”

The burden of proof is on the taxpayer, and auditors typically require contemporaneous documentation. Without solid records, the rental is presumed taxable.

Taxpayer Must Retain Documentation

Whether claiming an exemption under the six-month lease rule or residency exception, the taxpayer must retain records to support the claim.

Required documentation may include:

• Signed lease agreements (showing dates and terms)
• Residency declarations or affidavits
• Utility bills, ID copies, or homestead records
• Booking receipts and communications with guests

Florida courts and the Department of Revenue consistently hold that oral agreements are insufficient, and that missing paperwork generally results in full tax assessments.

Common Mistakes and Audit Risks

• Allowing a guest to move in without a signed lease
• Attempting to “backdate” leases after an audit begins
• Confusing long-term intent with documented proof
• Treating rent paid monthly as a substitute for a fixed-term lease
• Assuming that payment platform records (e.g., Airbnb logs) are enough

In practice, many hosts lose exemption claims simply due to poor recordkeeping or misunderstanding how the six-month rule works.

Florida Case Law and Technical Assistance Advisements (TAAs) on Tourist Development Tax

Florida courts have addressed the Tourist Development Tax as it has encountered various nuances and emerging technology that have impacted how transient rentals are sold.  Florida’s Department of Revenue also issues Technical Assistance Advisements (TAAs) to clarify its position on the taxability of certain transactions under state law. Case law and TAAs on Tourist Development Tax cover a broad scope of issues, including online travel companies, exemptions, and responsible party liability.

1. Who Owes the TDT? – Collection and Remittance Obligations

TAA 10A-008 (March 2010) – Responsible Party for Tax Collection

Facts: A management company handled bookings for individual unit owners in a short-term rental resort. The company collected rent and passed net proceeds to owners.

Ruling: The company was deemed the “dealer” responsible for collecting and remitting TDT and state sales tax—even though it acted on behalf of owners. The tax applied to the total rent collected, not just the amount retained.

Key takeaway: Property managers who collect or handle rent are generally responsible for tax, even if acting as agents.

TAA 20A-006 – Responsibility When Platform Facilitates Payment

Facts: An online travel company facilitated bookings but did not collect or remit TDT in self-administered counties. The platform argued it wasn’t the “dealer.”

Ruling: The DOR ruled that county ordinances govern whether online platforms are liable to collect TDT. For state-administered counties, platforms must collect TDT if they handle payments.

Key takeaway: Platform responsibility varies by county administration structure and payment flow.

Hale v. Department of Revenue, DOAH Case No. 19-0529 (2020)

Facts: A taxpayer claimed an exemption for long-term rental use but failed to provide a valid lease signed before occupancy.

Ruling: The lease was executed after the guest moved in. The court held the taxpayer failed to meet the statutory exemption, and the TDT applied. Oral or retroactive agreements were not acceptable.

Key takeaway: Strict compliance with the pre-occupancy lease requirement is essential to claim the six-month exemption.

1. Online Travel Companies – Gross Receipts and Markups

Alachua County v. Expedia, Inc., 228 So. 3d 83 (Fla. 1st DCA 2017)

Facts: Online travel companies (OTCs) like Expedia collected payment from travelers, retained a portion as compensation, and passed the net rate to hotels. The county sought tax on the retail rate paid by the traveler.

Ruling: The court held the TDT applied only to the amount paid to the hotel, not the markup retained by the OTC. The ruling emphasized the tax was on “consideration paid for occupancy,” which did not include platform service fees.

Key takeaway: Counties cannot tax the markup or facilitation fee unless explicitly authorized by ordinance or statute.

Gannon v. Airbnb, Inc., 2023 WL 2396613 (Fla. 11th Cir. Ct. App. Feb. 3, 2023)

Facts: Plaintiffs sued Airbnb for failing to collect TDT in various Florida counties. Airbnb argued it was not liable in counties where ordinances did not specifically require collection by intermediaries.

Ruling: The court dismissed claims against Airbnb, agreeing that collection obligations must be expressly imposed by ordinance in each jurisdiction.

Key takeaway: Platform liability depends on county-level legislative authority, and blanket collection is not required.

III. Refunds and Overpayment Litigation

TAA 20A-014 – Refund Claim for Overcollected TDT

Facts: A hotel operator overcollected TDT and sought a refund from DOR. The department denied the refund, claiming the hotel must first refund the customer.

Ruling: The TAA confirmed that a refund of overpaid tax must be passed through to the customer before DOR will process the return.

Key takeaway: You must first return funds to the customer before requesting a refund from the state or county.

1. Exemption Disputes and Documentation Failures

TAA 17A-026 – No Lease Signed Prior to Occupancy

Facts: A property owner allowed guests to stay for long periods but did not execute six-month leases prior to occupancy. The owner claimed the rentals were long-term.

Ruling: The DOR ruled that the failure to sign a lease in advance disqualified the exemption, even if the actual stay exceeded six months.

Key takeaway: Duration of stay alone is not enough—you need a pre-signed lease.

Broward County v. Fairfield Resorts, Inc., 915 So. 2d 662 (Fla. 4th DCA 2005)

Facts: The county sought TDT on maintenance fees charged by a timeshare operator to owners using their weeks. The operator argued that no “consideration” was paid for occupancy.

Ruling: The court held that maintenance fees were not subject to TDT because they were not paid in exchange for a specific transient rental. Only transactions involving payment for occupancy are taxable.

Key takeaway: Timeshare owner use without separate payment may be exempt.

1. Special Assessments and Related Taxes

Facts: In 1978, Miami-Dade County passed an ordinance to impose the Tourist Development Tax (TDT) and proposed using the revenues in part to fund renovations to the Orange Bowl stadium. The ordinance was submitted to voters for approval by referendum, as required by Fla. Stat. § 125.0104. The Miami Dolphins, along with other plaintiffs, challenged the legality of both the ordinance and the referendum.

Legal Challenge:
The Dolphins raised multiple objections:

• They argued the referendum was invalid because the County’s “tourist development plan” lacked specific feasibility studies and cost data, allegedly violating § 125.0104(4)(c), Fla. Stat.
• They also claimed the tax plan would unconstitutionally transfer control of the stadium from the City of Miami to the County without the voter approval required under Article VIII, § 4 of the Florida Constitution.

Ruling: The Florida Supreme Court rejected the challenge and upheld the TDT. The Court held that:

• The tourist development plan complied with statutory requirements, even without detailed feasibility studies at the referendum stage.
• The proposed use of funds did not violate constitutional limits on transferring governmental powers.

Key Takeaway: The Court affirmed counties’ broad authority to adopt and implement tourist development taxes—even for projects like stadium improvements—so long as minimum statutory procedures are followed. This case validated the foundational constitutionality of Florida’s TDT framework.

Compliance Risks, Audit Triggers, and Best Practices for Operators

While many businesses treat the Tourist Development Tax (TDT) as just another line item on a rental invoice, Florida’s TDT is a major source of audit risk for hotels, vacation rental operators, property managers, and online platforms. Understanding how enforcement works—and how to protect yourself—is essential.

Common TDT Audit Triggers

The Florida Department of Revenue (DOR), as well as self-administering counties, initiate TDT audits based on:

• Data mismatches between state sales tax filings and reported TDT revenue
• Sudden drops in reported taxable rental activity
• Complaints or tips from competitors, neighbors, or local officials
• Discovery of unregistered properties on platforms like Airbnb, Vrbo, or Booking.com
• Noncompliance with filing frequency or return due dates

In counties that self-administer the tax (e.g., Orange, Escambia, Santa Rosa), local auditors may be more aggressive or apply rules differently from DOR auditors.

Key Compliance Pitfalls

1. Misclassifying Exempt Rentals
   • Failing to sign six-month leases before occupancy
   • Relying on oral agreements or unverified guest claims of residency
2. Underreporting Gross Receipts
   • Excluding platform fees or cleaning charges (both typically taxable)
   • Reporting only net rental income (instead of total rent charged)
3. Platform Confusion
   • Assuming Airbnb or other intermediaries always collect and remit TDT
   • Failing to understand that liability depends on county rules
4. Poor Recordkeeping
   • Not retaining signed leases, residency declarations, or supporting documents
   • Inadequate guest logs, receipts, or digital records
5. Incorrect Application of Rates
   • Applying state sales tax but omitting local TDT or surtaxes
   • Using outdated county rate charts or ignoring local ordinance changes

Best Practices for TDT Compliance

To minimize audit exposure and ensure correct compliance:

Register for TDT and Sales Tax in every applicable county
Know who administers the tax: DOR vs. self-administered county
Apply current rates using the Form DR-15TDT
Sign six-month+ leases before move-in to claim long-term exemption
Collect documentation for all exemptions, including utility bills, IDs, and voter registration
Understand platform responsibilities—verify what is collected by Airbnb, Vrbo, etc.
Keep digital and paper records for at least 3–5 years (or longer, in disputed cases)
File returns on time and ensure full remittance of all transient taxes
Seek legal guidance or a Technical Assistance Advisement (TAA) if your situation is unclear

Conclusion: Navigating Florida’s Tourist Development Tax

Florida’s Tourist Development Tax is far more than a local surcharge—it’s a legally complex, revenue-critical tax that affects nearly every short-term rental operator in the state. Between the overlapping layers of state and local law, the variations in county administration, and the growing enforcement against platforms and hosts, the TDT has evolved into one of the most scrutinized and litigated local taxes in Florida.

Whether you’re a hotel operator in Miami-Dade, a property manager in Orlando, or a vacation rental owner in the Florida Keys, TDT compliance isn’t optional—it’s fundamental. Failure to understand the six-month exemption rules, properly remit taxes, or maintain adequate documentation can result in significant liability, denied refunds, and costly audits.

Key takeaways:

• Know your county: Not all TDT rules are the same.
• Get it in writing: Verbal agreements don’t count in tax audits.
• Collect before you remit: Taxes must be charged up front—and you’re liable whether or not you collect them.
• Watch for rule changes: TDT enforcement and legislation continue to evolve, especially around online platforms.
• When in doubt, get a TAA: The Florida Department of Revenue offers private-letter guidance to clarify gray areas in advance.

For business owners, attorneys, and CPAs working with short-term rental clients, staying ahead of Florida’s TDT rules is a necessary part of doing business in a tourist economy. The combination of statutes, rules, ordinances, TAAs, and case law makes this a field where compliance requires both diligence and expertise.

If your company needs help interpreting a county ordinance, handling a tax audit, or requesting a refund or ruling, consult a professional familiar with Florida’s state and local tax landscape.