Florida TaxWatch Assesses Unlicensed Vacation Rentals in Florida
Tallahassee, Fla – Today, Florida TaxWatch released The Impact of Unlicensed Vacation Rentals on Florida’s Economy, an assessment of unlicensed vacation rental properties in Florida and the consequences of not addressing this pervasive issue. The government watchdog presents this report to inform ongoing conversations surrounding House Bill 1537 and Senate Bill 280 – which will be presented in the Senate Committee on Fiscal Policy today, Thurs., Jan. 18 at 1:30 p.m. – relating to vacation rental advertising platform requirements.
Florida TaxWatch President and CEO Dominic M. Calabro said, “While vacation rental properties play a critical role in Florida’s tourism-driven economy, unlicensed vacation rentals have become all too common, posing a risk to the wellbeing of renters and, given the fraudulent withholding of tax dollars, potentially increasing the cost burden on dutiful taxpayers. As the popularity of vacation rentals continues to grow, Florida TaxWatch encourages the state to develop policies that authorize the enforcement of current law and demand transparency and accountability moving forward. We offer our thorough research as a resource to help educate legislators and staff, members of the media, and other stakeholders about this issue and the clear and present need for reform.”
According to Florida TaxWatch, Florida welcomed about 137.4 million visitors in 2022, and at the end of Fiscal Year 2021-22, the state had about 174,000 condos and dwellings licensed for use as vacation rental properties – an increase of 33 percent compared to five years prior. When considering all active listings posted on major hosting platforms in November 2023, an estimated minimum of 49,280 vacation rentals, or 28 percent, were missing proper licensing.
Unlicensed vacation rental properties avoid the costs associated with licensure and may fail to collect and remit required federal, state, and local taxes. Florida TaxWatch estimates that unlicensed vacation rental activity from a single day in November 2023 could cost Florida between $1.8 million and $6.9 million in registration costs; between $1.2 and $5.5 million in recurring licensing fees; up to $32,000 in local option transient taxes; and up to $21.3 million in property taxes due to fraudulent homestead exemption claims.
Florida TaxWatch notes that bills intending to regulate vacation rental properties in Florida have been filed nearly every legislative session in recent years, but they often failed to make it to the governor’s desk for signature. As the issue is considered again this session, Florida TaxWatch provides the following recommendations:
- Establish a source of data to track the activity of vacation rentals.
- Impose a requirement to post registration numbers on hosting platforms.
- Design a uniform way for hosting platforms to collect and remit local and state taxes, monitored by regular audits.
- Involve stakeholders – including the Department of Business and Professional Regulation, major hosting platforms, and vacation rental operators – to help determine what challenges may occur as changes are implemented.
For more information and to access the full report, please click here.
About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute for more than forty years and the trusted eyes and ears of Florida taxpayers, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it serves since 1979. For more information, please visit www.floridataxwatch.org.