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Tourist Development Tax Frequently Asked Questions

General Questions

Q: What is Tourist Development Tax (TDT)?
A: This is a tax on short term rental properties that strengthens our local economy by supporting our County’s tourism industry. That support includes funding for Palm Beach County tourism promotion, art and cultural events, professional sports facilities and beach restoration.

Q: Who pays Tourist Development Tax?
A: Anyone who offers accommodations for short term rental (six months or less), is required to pay TDT.

Q: How much is Tourist Development Tax?
A: TDT is 6% of total taxable rental receipts. It is an add-on tax and is collected from the tenant at the time rent or accommodation charges are collected.

Q: What kind of records should I keep for TDT?
A: All records are required to be maintained for three years after a return is filed because they are subject to audit. Records are to include, but are not limited to invoices, sales tax returns, federal income tax returns, general ledger, leases and guest checks.

Q: Do I have to file a return every month?
A: TDT returns are due by the 20th of each month and must be filed. If no tax is due for that reporting period, a return must be filed indicating $0.00 due.

Property Owner Questions

Q: What are the penalties for not filing or paying?
A: Failure to collect and remit TDT is a theft of state funds and carries felony charges. Applicable penalties and interest will be charged if a TDT return is not filed by the due date, including those with periods of no rental activity.

Q: What happens if I am out of compliance?
A: If you are out of compliance, contact us at (561) 355-3547 and we will work with you to bring the taxes into compliance.

Q: I advertise and rent my property online, are the requirements different?
A: No, all property owners must register their property, file returns and remit payments, even if you offer your property for rent through a third-party such as VRBO®, Home Away ™ or Airbnb.  

Q: What do I do if I have an agent file on my behalf?
A: Inform your agent of the new process and online payment center. Your agent will no longer have a TDT account number and will need to create an online login. You must then authorize the agent to file TDT returns and manage your account. Your agent will be notified via email when you have given authorization.

Q: I already have a TDT account number, why do I need to register my property again?
A: The tourist development tax process is moving completely online this year. Due to this change a new TDT account number must be issued for each property. Complete the registration form and return to our office no later than June 1, 2018.

Q: How do I register my property?
A: Complete the registration form and return to our office no later than June 1, 2018. Please remember to list all rental properties on the form. Registration forms can be found online www.pbctax.com/tdt

Q: Can I use my International driver license to register my rental properties?
A: Yes, you have the ability to register using your international driver license or passport.

Q: With the new online system, can I pay using a non-U.S. bank account?
A: Payments can only be accepted if from a United States (U.S.) bank account, and payable in U.S. dollars.

Q: How will I know when the online system is available?
A: We will notify you when the online system is available. At which time you will validate your account and required to use the online system for all TDT transactions.

Q: What happens if I mistakenly file my return and remit payment via post after the online system is available?
A: After the system becomes available online, you will no longer be able to file returns or remit payment via post. This can only be done online. Returns and payments sent via post will be returned to you.

Q: What do I need to do if I no longer rent short term?
A: If you no longer rent short term, you will no longer be required to pay TDT and must close your account. In order to close your account it must be in compliance. Send a signed letter to our office requesting the account to be closed due to the property no longer being rented for 6 months or less.

Q: I still have questions, what do I do?
A: For more information call the TDT Hotline (561) 355-3547 or email clientadvocate@taxcollectorpbc.com.

Agent Questions

Q: I’m an agent, filing on behalf of numerous property owners, what do I need to do?
A: Contact your property owners to make sure they are aware of the new requirements. You will no longer have a TDT account number but must have complete an application and pay Local Business Tax (BTR). Ensure each property owner authorizes you to file TDT returns and remit payments on their behalf. You will be notified via email when a property owner authorizes you in the system.

Q: Will you accept a scanned copy of my client’s Registration Form?
A: Yes, a scanned copy can be accepted, until registration is available online.

Q: I don’t currently have a BTR, what do I need to do?
A: Complete an application and mail to our office. Applications can be found http://www.pbctax.com/services/local-business-tax-services/local-business-tax-forms

Q: How will I know when a property owner has granted me access in the new online system?
A: You will be notified via email once a property owner grants authorization.

Q: What happens if I mistakenly file my return and remit payment via post after the online system is available?
A: After the system becomes available online, you will no longer be able to file returns or remit payment via post. This can only be done online. Returns and payments sent via post will be returned to you.

Q: I need further assistance with setting up the properties I manage, what do I do?
A: If you have questions or need assistance at any point during this transition, please call us. We are happy to set up an appointment to have you come in and work with one of our TDT specialists to make sure you get the help you need. We will work with you individually to make sure you and your clients are prepared for this new online process.  To set up your one-on-one meeting Email: clientadvocate@taxcollectorpbc.com or call our Help line: (561) 355 – 3929

 

 

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