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Ways to Increase Tourist Development Tax Collections through Collaboration

Explore strategies to enhance enforcement of tax collection laws and address issues such as vacation rental non-compliance, property ownership by out-of-state individuals, collecting from campgrounds, and improving reporting systems.

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Ways to Increase Tourist Development Tax Collections through Collaboration

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  1. Ways to Increase Tourist Development Tax Collections through Collaboration

  2. About FACVB • Members are county tourism promotion agencies. • Could be convention and visitors bureaus, visitor and convention bureaus, tourist development councils, county agencies or chambers of commerce.

  3. Investigation “Probably the number one issue is....enforcement of the laws relating to tax collection. I've heard that complaint more often than not. Evidently many tax collectors don't see this area of their operation as a priority. Aggressive tax collection pays for itself, many times over.” “What I hear from our partners is that many believe--some emphatically--that vacation rental folks from mom & pops to multi unit property managers are not collecting the bed taxes. They believe that county tax collectors don't have the staffs to pursue these lodging providers, even via web site review, and as such simply let them slide. Those who are among the most fervent believers in this feel that by allowing it to continue they are at a competitive disadvantage to the ‘bed tax cheats.’”

  4. Investigation

  5. Investigation

  6. Investigation

  7. Investigation Property ownership by state, “9 times out of 10, an out of State property owner is renting the unit while they're not using it Send letter so them, explaining that they have to pay bed tax or they have to be using an approved rental property management company that pays for bed tax. And that's helped bring in new accounts considerably, because sometimes they don’t realize that.

  8. Investigation Collecting from Campgrounds • Campgrounds, many have outdated exception • How big of an issue is it in other counties? • Has anyone protested the DOR exemption for an account? • Has anyone requested an audit on an exemption from DOR?

  9. Investigation • Since all three major accounts in Leon County are openly advertising for short-term stays, would the organization be willing to support the reexamination of Chapter 212.03 during the next legislative session? • “Tax Amnesty program and how to best convince non-registrants to register. Are there too many things they must agree to in order to feel comfortable about registering.”

  10. Enforcement “A system that required more substantive reporting of room revenue...right now it is sort of an ‘honor’ system.”

  11. Research • “Share more information about tax collections by zip code or types of hotel classifications. We are often asked about this and we cannot respond. It would also help with performance measurement.” • “We're challenged with bed tax reports that don't tell the full picture, ie. is the 6% decrease we see due to several properties not filing their reports?  Are some waiting several months to file?”

  12. Research • “I think we need to address the fact that TDC's cannot get a list of bed tax collectors in order to help determine those that may be avoiding collecting/paying the tax.” • “I think it would be interesting to know if they are seeing hotels delay or not pay their taxes even property taxes.”

  13. Collaboration “Our best chance to resolve the internet retailer issue was 2004, since then the problem has only gotten worse and the internet retailers, more powerful.

  14. Issues Specific to BP Oil Spill “Hi Robert, It is my understanding that the County (TDC) should apply to BP for lost bed tax collections. We are to supply 2 or 3 years previous collections to claim the losses each month this year. I am planning to also claim an additional 10% - collections were up 10% for the fiscal year before the oil crisis. Is this your understanding, also?”

  15. Issues Specific to BP Oil Spill • BP Staff and Contractors: • “BP subcontractors trying to score ‘government’ rates. BP employees are not doing it, but the subs are trying to.” • 2. “BP has signed annual contracts for rooms. We think they still pay TDT on them since the primary use of the property is transient lodging, but we're not sure.”

  16. Contact Information Robert Skrob, CPA, CAE 335 Beard St Tallahassee, FL 32303 Phone: 850-222-6000 Fax: 850-222-6002

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