Rate Increase FAQ
Tourist Development Tax (TDT)
When will the 6% Tourist Development Tax increase take effect?
Palm Beach County will implement the 6% rate beginning February 1, 2015.
I pay my Tourist Development Tax annually, semiannually, or quarterly. What do I do?
You will have to file a separate return for January 2015 at the previous 5% rate. Any property rented in February going forward will be required to pay the 6% rate regardless of filing period.
What form do I use to file and report both the 5% and 6% rates?
If your reporting period includes January 2015 and February 2015, you will use two Return forms – January 2015 will be calculated at gross rental receipts x 5% and February 1, 2015 forward will be calculated at gross rental receipts x 6%.
I have already collected TDT at 5% from my renter. Am I responsible for collecting the additional 1% increase?
Yes. In Palm Beach County, effective February 1, 2015, new 6% rate must be collected going forward.
When will penalties and interest charges begin to accrue on the unpaid 1% increase?
After 30 days, the delinquent payment will accrue penalties and interest.
I am a realtor/property owner. How will the 1% increase in Tourist Development Tax need to be reflected in leases that are already in effect?
Any lease that covers February 1, 2015 and/or going forward will need to be collecting the 6% tax rate.
When I file my TDT at the 5% rate and the 6% rate, will the 2.5% Collection Allowance Credit apply to both returns? Is the second return considered a Supplemental Filing (no collection allowance credit applicable)?
The Collection Allowance Credit will apply to both returns.