Florida hotels collect multiple taxes from guests and remit them to different government agencies. The total tax rate guests see on their bill combines state sales tax, county discretionary surtax, and the local Tourist Development Tax. Each component has its own rules for collection, reporting, and payment.

State sales tax is 6% on transient rentals, which Florida defines as accommodations rented for six months or less. County discretionary surtax adds another 0.5% to 1.5% depending on location. Both of these go to the Florida Department of Revenue, typically filed monthly using a single return. The filing deadline is the 20th of the following month, though electronic filers get a few extra days.

The Tourist Development Tax is separate and goes directly to the county. In Palm Beach County, the TDT rate is 6%, making the combined tax burden on room rentals over 13%. Broward County charges 6% TDT as well. Miami-Dade varies by location within the county. Each county has its own filing portal, deadlines, and reporting requirements. Hotels operating in multiple counties file with each one separately.

The money collected belongs to the government from the moment the guest pays. It shows up as a liability on your balance sheet until you remit it. This creates a cash flow timing issue that catches some operators off guard. You have guest payments sitting in your operating account that aren’t actually yours to spend. Proper tracking prevents accidentally using tax funds for operations and then scrambling to cover the payment.

Exemptions exist but require documentation. Government employees on official business, certain nonprofit organizations, and guests staying longer than six months may qualify. The hotel must collect and retain exemption certificates. Hotels and lodging businesses that accept verbal claims of exemption without proper documentation remain liable for the uncollected tax if audited.

Point-of-sale systems and property management software usually calculate the taxes automatically, but the rates need to be configured correctly and updated when they change. A wrong rate setting creates either undercollection, which you owe out of pocket, or overcollection, which creates refund obligations and reporting problems.

Reconciliation matters more than most hotel operators realize. The tax collected according to your PMS should match what posts to your liability account, which should match what you remit. Discrepancies indicate either system configuration issues, manual overrides that weren’t properly recorded, or posting errors. Finding these monthly is manageable. Finding them during an audit is expensive.

Controller services in Boca Raton help hotels maintain proper oversight of tax liabilities without getting buried in the daily transaction detail. The filing itself is straightforward once the numbers are right. Getting the numbers right requires consistent reconciliation and someone reviewing the accounts who understands what they’re looking at.

Late payments trigger penalties and interest that add up quickly. The state charges a minimum penalty plus interest on the unpaid amount. Counties have their own penalty structures. Being a few days late once is annoying. Being consistently late or significantly underpaying draws audit attention you don’t want.