The Florida Department of Revenue (DOR) has announced an important compliance change for businesses that collect Highlands County tourist development tax. Beginning October 1, 2026, Highlands County will assume responsibility for collecting and administering its 5% tourist development tax on transient rentals. Taxpayers will no longer report and remit that local tax to DOR. Instead, filings and payments must be submitted directly to the Highlands County Tax Collector. 

The change stems from Highlands County Ordinance No. 25-26-16, adopted by the Highlands County Board of County Commissioners on June 16, 2026. The ordinance transfers administration, collection, and enforcement responsibilities from DOR to the Highlands County Tax Collector. 

Although the tax rate remains unchanged, the reporting process will change significantly for taxpayers with Highlands County lodging activity.

What Changed?

Under Ordinance No. 25-26-16, Highlands County elected to administer its own tourist development tax pursuant to section 125.0104, Florida Statutes. The county’s 5% tourist development tax applies to transient accommodations and short-term lodging transactions. 

The ordinance transfers the collection and administration function from DOR to the Highlands County Tax Collector. As a result, taxpayers must prepare for a new reporting structure beginning this fall. 

County materials indicate that local administration is expected to improve local oversight, enhance taxpayer support, and provide more detailed information regarding tourism activity within Highlands County. 

The Effective Date Is Critical

The effective date creates a clear dividing line for reporting purposes.

Tourist development tax collected through September 30, 2026, must continue to be reported and paid to DOR. Tourist development tax collected on or after October 1, 2026, must be reported and paid directly to the Highlands County Tax Collector. 

Businesses should focus carefully on collection dates. Accounting systems, reservation platforms, and reporting procedures should be reviewed before the transition occurs.

The distinction may be especially important for taxpayers that collect taxes in advance of occupancy or process large volumes of reservations through automated systems.

Not All Taxes Are Moving

One of the most important details in DOR’s publication is that the reporting change affects only the local tourist development tax.

The following taxes continue to be reported to DOR:

• Florida’s 6% state sales tax

• Highlands County’s 1.5% discretionary sales surtax

Therefore, businesses may need to report taxes arising from the same lodging transaction to multiple agencies after October 1, 2026. The tourist development tax will be reported locally, while sales tax and surtax reporting will remain unchanged. 

Taxpayers should review internal controls to confirm the correct taxes are routed to the correct government entity.

Who May Be Affected?

The reporting change potentially affects numerous participants in the hospitality industry.

Affected taxpayers may include:

• Hotels

• Motels

• Resort operators

• Vacation rental owners

• Airbnb hosts

• VRBO operators

• Property management companies

• Condominium rental programs

• Marketplace facilitators handling lodging transactions

Many businesses use software platforms to automate tax calculations and filings. Those platforms should be reviewed before the transition to ensure compliance with the new reporting requirements.