Tourist Development Tax
The Tourist Development Tax is a tax on the total consideration that must be paid by the guest for the rental or lease of living quarters and accommodations in a hotel, motel, rooming house, trailer camp, condominium, apartment, multiple-unit structure, mobile home, trailer, single-family home, or any other sleeping accommodations that are rented for a period of six months or less. The authorization to levy and administer Tourist Development Taxes of up to six percent is stated in Section 125.0104, Florida Statutes, and in Chapter 212, Florida Statutes.
The current tax rate is 6%, effective as of September 1, 2006.
Tourist Development Tax is levied by the Board of County Commissioners and is administered by the Orange County Comptroller’s Office. Expenditures for the first four cents are limited by Florida Statutes to the acquisition and operation of convention centers, sports stadiums and arenas, auditoriums and museums, promotion and/or advertisement of tourism and funding of tourist and convention bureaus and tourist information centers. Expenditures for the fifth cent are limited by Florida Statutes to pay the debt service on bonds issued to finance the construction, reconstruction, or renovation of a professional sports franchise facility or subsequently a convention center or promote and advertise tourism. Expenditures for the sixth cent are limited by Florida Statutes to pay the debt service on bonds issued to finance the construction, reconstruction, or renovation of a new professional sports franchise facility or a retained spring training franchise that was not based in Florida prior to April 1, 1987.
The tax must be paid by the tenants or guests in addition to the total consideration paid for the rental for all accommodations subject to the Tourist Development Tax.
The person who collects the rental charges from the guest, regardless of whether or not that person is the owner or manager of the above mentioned facilities has the responsibility to collect the Tourist Development Tax from their tenants or guests and remit them to the Orange County Comptroller.
These taxes shall be remitted to the Orange County Comptroller monthly. They are due on the first of the month following collection from tenants and guests, and are considered delinquent if not postmarked by the 20th of the month. If the United States Post Office cancellation stamp date is different from the postage meter date on the envelope, the post office cancellation stamp date is the accepted postmark date. For convenience, online filing is also an available option for tax returns and payments. A tax return must be filed every month even if no taxes were collected for the month. There is currently no provision for acceptance of quarterly or semiannual returns.
Dealers may deduct a collection allowance of 2.5% of the first $1,200 of taxes collected to a maximum of $30 only when they:
- File tax returns online via our website: https://tdt.occompt.com/excise/login.aspx and;
- Pay tax online via our website or other electronic method (Fedwire or ACH); and
- File and pay tax on time.
You will not be entitled to a collection allowance if you file a paper tax return or pay tax by cash, check, or money order. Also, if you file and pay tax electronically or online but are late, you cannot deduct a collection allowance from the amount due with the return.
If your property is handled by a property manager, the property manager may have their own Tourist Development Tax account and will submit the Tourist Development Tax payments for all of their clients in a consolidated return. You should verify this with your property manager. However, you should be aware that as the property owner, you are ultimately responsible for the required tax being paid. Any failure by your property manager to pay the tax may result in penalties being applied against you, as the property owner. If your property is handled by a property manager, but you also directly rent the property yourself, you are responsible for submitting Tourist Development Tax returns for the taxes you collect from these rentals. You will need an individual Tourist Development Tax account on which to report these rentals.
Penalties are assessed at the rate of 10% of the tax shown due on the return or $50, whichever is greater. Interest is assessed at a variable rate that is updated on January 1 and July 1 of each year. The charge for a dishonored check is based on the current rate established by County Ordinance or Resolution. Excessive returned checks will result in the requirement to submit future tax, penalty and interest payments in cash or by money order. Fraud is dealt with very severely, in accordance with the provisions and to the full extent of Florida Law.
All Tourist Development Tax records must be retained for three years and made available for an audit at the place of business, within Orange County. Records shall include, but not be limited to, financial statements, guest folios, general ledgers, sales tax payments, federal income tax returns, and leases.