The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Regulated Industries
BILL: CS/SB 714
INTRODUCER: Regulated Industries Committee and Senator DiCeglie
SUBJECT: Vacation Rentals
DATE: March 15, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Oxamendi Imhof RI Fav/CS
2. AEG
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Technical Changes
I. Summary:
CS/SB 714 revises the regulation of vacation rentals. A vacation rental is a unit in a
condominium or cooperative, or a single, two, three, or four family house that is rented to guests
more than three times a year for periods of less than 30 days or one calendar month, whichever is
shorter, or held out as regularly rented to guests. Vacation rentals are licensed by the Division of
Hotels and Restaurants (division) within the Department of Business and Professional
Regulation (DBPR). Current law does not allow local laws, ordinances, or regulations that
prohibit vacation rentals or regulate the duration or frequency of rental of vacation rentals.
However, this prohibition does not apply to any local law, ordinance, or regulation adopted on or
before June 1, 2011.
The bill permits “grandfathered” local laws, ordinances, or regulations adopted on or before June
1, 2011, to be amended to be less restrictive or to comply with local registration requirements.
The bill does not affect vacation rental ordinances in jurisdictions located in an area of critical
state concern.
Under the bill, a local government may require vacation rentals to be registered. The registration
fee may not exceed $50 for an individual or $100 for a collective vacation rental registration. A
local government may impose a fine for failure to register a vacation rental. The bill establishes
limits for a local government registration program, including requiring a vacation rental owner to
obtain any required tax registrations, pay all recorded municipal or county code liens, and
designate a responsible person who is available 24/7 to respond to complaints. A local
REVISED: BILL: CS/SB 714 Page 2
government may adopt parking and garbage requirements so long as those standards are not
imposed solely on vacation rentals. Additionally, the bill requires local governments to accept or
deny a registration application within 15 days of receipt of an application. The bill authorizes the
division to issue temporary licenses to permit the operation of the vacation rental while the
license application is pending.
The bill permits a local government to terminate a local registration for violations of local
registration requirements. The bill also authorizes the division to revoke or suspend state
vacation rental licenses for violations of local registration requirements and violations of
community association property restrictions.
The bill preempts the regulation of advertising platforms to the state. An advertising platform is a
person who electronically advertises a vacation rental to rent for transient occupancy, maintains a
marketplace, and a reservation or payment system.
The bill requires the owner or operator of a vacation rental offered for transient occupancy
through an advertising platform to include the property’s vacation rental license number issued
by the DBPR and the local registration number on the vacation rental’s advertisement, and attest
that, to the best of their knowledge, those numbers are current, valid, and accurate. The vacation
rental property owner or operator must display this tax and licensure information inside the
vacation rental property.
The bill requires an advertising platform to display the vacation rental license number and the
local registration number of each property that advertises on its platform. The advertising
platform must verify the validity of the vacation rental’s license number before it publishes the
advertisement and must perform ongoing checks every calendar quarter thereafter. To facilitate
this verification, the division must maintain vacation rental license information in a readily
accessible electronic format by July 1, 2024. The advertising platform must remove from public
view any advertisement or listing that fails to display a valid vacation rental license number.
Advertising platforms are required by the bill to collect and remit any taxes imposed under
chapters 125, 205, and 212, F.S., that result from payment for the rental of a vacation rental
property on its platform. The bill allows platforms to exclude service fees from the taxable
amount if the platforms do not own, operate, or manage the vacation rental. It allows the division
to take enforcement action for noncompliance.
Additionally, the bill:
Authorizes the division to fine an advertising platform an amount not to exceed $1,000 for a
violation of the provisions in the bill or rules of the division;
Requires advertising platforms to adopt anti-discrimination policies and to inform users of
the public lodging discrimination prohibition found in section 509.092, F.S.;
Provides that the advertising platform requirements in the bill do not create a private right of
action against advertising platforms;
Allows the Department of Revenue to adopt emergency rules for six months which may be
renewed until permanent rules are adopted; and
Provides that its terms do not supersede any current or future declaration or covenant for
condominium, cooperative, or homeowners’ associations. BILL: CS/SB 714 Page 3
The Revenue Estimating Conference determined that the provisions in the bill that require
advertising platforms to collect and remit state and local sales taxes have no fiscal impact.
The bill takes July 1, 2023. However, the provisions relating to the regulation of advertising
platforms take effect January 1, 2024.
II. Present Situation:
The Division of Hotels and Restaurants (division) within the Department of Business and
Professional Regulation is the state agency charged with enforcing the provisions of
ch. 509, F.S., relating to the regulation of public lodging establishments and public food service
establishments for the purpose of protecting the public health, safety, and welfare.
The term “public lodging establishments” includes transient and nontransient public lodging
establishments.
1
The principal differences between transient and nontransient public lodging
establishments are the number of times that the establishments are rented in a calendar year and
the duration of the rentals.
A “transient public lodging establishment” is defined in s. 509.013(4)(a)1., F.S., as:
…any unit, group of units, dwelling, building, or group of buildings within
a single complex of buildings which is rented to guests more than three
times in a calendar year for periods of less than 30 days or 1 calendar
month, whichever is less, or which is advertised or held out to the public
as a place regularly rented to guests. (emphasis supplied)
A “nontransient public lodging establishment” is defined in s. 509.013(4)(a)2., F.S., as:
…any unit, group of units, dwelling, building, or group of buildings within
a single complex of buildings which is rented to guests for periods of at
least 30 days or 1 calendar month, whichever is less, or which is advertised
or held out to the public as a place regularly rented to guests for periods of
at least 30 days or 1 calendar month. (emphasis supplied)
Section 509.013(4)(b), F.S., exempts the following types of establishments from the definition of
“public lodging establishment”:
1. Any dormitory or other living or sleeping facility maintained by a
public or private school, college, or university for the use of students,
faculty, or visitors;
2. Any facility certified or licensed and regulated by the Agency for
Health Care Administration or the Department of Children and Families or
other similar place regulated under s. 381.0072, F.S.;
1
Section 509.013(4)(a), F.S. BILL: CS/SB 714 Page 4
3. Any place renting four rental units or less, unless the rental units are
advertised or held out to the public to be places that are regularly rented to
transients;
4. Any unit or group of units in a condominium, cooperative, or
timeshare plan and any individually or collectively owned one-family,
two-family, three-family, or four-family dwelling house or dwelling unit
that is rented for periods of at least 30 days or one calendar month,
whichever is less, and that is not advertised or held out to the public as a
place regularly rented for periods of less than one calendar month,
provided that no more than four rental units within a single complex of
buildings are available for rent;
5. Any migrant labor camp or residential migrant housing permitted by
the Department of Health under ss. 381.008-381.00895, F.S.;
6. Any establishment inspected by the Department of Health and
regulated by ch. 513 F.S.;
7. Any nonprofit organization that operates a facility providing housing
only to patients, patients’ families, and patients’ caregivers and not to the
general public;
8. Any apartment building inspected by the United States Department of
Housing and Urban Development or other entity acting on the
department’s behalf that is designated primarily as housing for persons at
least 62 years of age. The division may require the operator of the
apartment building to attest in writing that such building meets the criteria
provided in this subparagraph. The division may adopt rules to implement
this requirement; and
9. Any roominghouse, boardinghouse, or other living or sleeping facility
that may not be classified as a hotel, motel, timeshare project, vacation
rental, nontransient apartment, bed and breakfast inn, or transient
apartment under s. 509.242, F.S.
A public lodging establishment is classified as a hotel, motel, vacation rental, nontransient
apartment, transient apartment, bed and breakfast inn, or timeshare project.
2
A “vacation rental” is defined in s. 509.242(1)(c), F.S., as:
…any unit or group of units in a condominium, cooperative, or timeshare
plan or any individually or collectively owned single-family, two-family,
three-family, or four-family house or dwelling unit that is also a transient
public lodging establishment but is not a timeshare project.
The DBPR licenses vacation rentals as condominiums, dwellings, or timeshare projects.
3
The
division may issue a vacation rental license for “a single-family house, a townhouse, or a unit or
group of units in a duplex, triplex, quadruplex, or other dwelling unit that has four or less units
2
Section 509.242(1), F.S.
3
Fla. Admin. Code R. 61C-1.002(4)(a)1. BILL: CS/SB 714 Page 5
collectively.”
4
The division does not license or regulate the rental of individual rooms within a
dwelling unit based on the roominghouse and boardinghouse exclusion from the definition of
public lodging establishment in s. 509.013(4)(b)9., F.S.
5
The 63,690 public lodging establishment licenses issued by the division are distributed as
follows:
6
Hotels – 2,308 licenses;
Motels – 2,397 licenses;
Nontransient apartments – 18,315 licenses;
Transient apartments – 913 licenses;
Bed and Breakfast Inns – 261 licenses;
Vacation rental condominiums – 12,716 licenses;
Vacation rental dwellings – 26,733 licenses; and
Vacation rental timeshare projects – 47 licenses.
Inspections of Vacation Rentals
The division must inspect each licensed public lodging establishment at least biannually, but
must inspect transient and nontransient apartments at least annually. However, the division is not
required to inspect vacation rentals, but vacation rentals must be available for inspection upon a
request to the division.
7
The division conducts inspections of vacation rentals in response to a
consumer complaint. In Fiscal Year 2020-2021, the division received 306 consumer complaints
regarding vacation rentals. In response to the complaints, the division’s inspection confirmed a
violation for 31 of the complaints.
8
The division’s inspection of vacation rentals includes matters of safety (for example, fire
hazards, smoke detectors, and boiler safety), sanitation (for example, safe water sources,
bedding, and vermin control), consumer protection (for example, unethical business practices,
compliance with the Florida Clean Air Act, and maintenance of a guest register), and other
general safety and regulatory matters.
9
The division must notify the local fire safety authority or
4
The division further classifies a vacation rental license as a single, group, or collective license. See Fla. Admin. Code
R. 61C-1.002(4)(a)1. A single license may include one single-family house or townhouse, or a unit or group of units within a
single building that are owned and operated by the same individual person or entity. A group license is a license issued by the
division to a licensed agent to cover all units within a building or group of buildings in a single complex. A collective license
is a license issued by the division to a licensed agent who represents a collective group of houses or units found on separate
locations not to exceed 75 houses or units per license.
5
See s. 509.242(1)(c), F.S., defining the term “vacation rental.”
6
Department of Business and Professional Regulation, Division of Hotels and Restaurants Annual Report for FY 2020-2021
at page 8, available at http://www.myfloridalicense.com/dbpr/hr/reports/annualreports/documents/ar2021_22.pdf (last visited
Mar. 2, 2023). The total number of vacation rental licenses for each classification include single licenses and group and
collective licenses that cover multiple condominium units, dwellings, and timeshare projects.
7
Section 509.032(2)(a), F.S.
8
Supra at note 6.
9
See ss. 509.211 and 509.221, F.S., for the safety and sanitary regulations, respectively. See also Fla. Admin. Code R. 61C-
1.002; Lodging Inspection Report, DBPR Form HR 5022-014, which details the safety and sanitation matters addressed in the
course of an inspection. A copy of the Lodging Inspection Report is available at:
https://www.flrules.org/Gateway/reference.asp?No=Ref-07062 (last visited Feb. 28, 2023). BILL: CS/SB 714 Page 6
the State Fire Marshal of any readily observable violation of a rule adopted under ch. 633, F.S.,
10
which relates to a public lodging establishment.
11
The rules of the State Fire Marshall provide
fire safety standards for transient public lodging establishments, including occupancy limits for
one and two family dwellings.
12
Additionally, an applicant for a vacation rental license is required to submit with the license
application a signed certificate evidencing the inspection of all balconies, platforms, stairways,
railings, and railways, from a person competent to conduct such inspections.
13
Preemption
Section 509.032(7)(a), F.S., provides that “the regulation of public lodging establishments and
public food service establishments, including, but not limited to, sanitation standards,
inspections, training and testing of personnel, and matters related to the nutritional content and
marketing of foods offered in such establishments, is preempted to the state.”
Current law does not preempt the authority of a local government or a local enforcement district
to conduct inspections of public lodging establishments for compliance with the Florida Building
Code and the Florida Fire Prevention Code, pursuant to ss. 553.80 and 633.206, F.S.
14
Section 509.032(7)(b), F.S., does not allow local laws, ordinances, or regulations that prohibit
vacation rentals or regulate the duration or frequency of rental of vacation rentals. However, this
prohibition does not apply to any local law, ordinance, or regulation adopted on or before June 1,
2011.
Section 509.032(7)(c), F.S., provides that the prohibition in s. 509.032(7)(b), F.S., does not apply
to local laws, ordinances, or regulations exclusively relating to property valuation as a criterion
for vacation rental if the law, ordinance, or regulation is required to be approved by the state land
planning agency pursuant to an area of critical state concern designation.
15
Legislative History
In 2011, the Legislature preempted certain vacation rental regulation to the state. The preemption
prevented local governments from enacting any law, ordinance, or regulation that:
Restricted the use of vacation rentals;
Prohibited vacation rentals; or
10
Chapter 633, F.S., relates to fire prevention and control, including the duties of the State Fire Marshal and the adoption of
the Florida Fire Prevention Code.
11
Section 509.032(2)(d), F.S.
12
See Fla. Admin. Code R. 69A-43.018, relating one and two Family dwellings, recreational vehicles and mobile homes
licensed as public lodging establishments.
13
See ss. 509.211(3) and 509.2112, F.S., and form DBPR HR-7020, Division of Hotels and Restaurants Certificate of
Balcony Inspection, available at
http://www.myfloridalicense.com/dbpr/hr/forms/documents/application_packet_for_vacation_rental_license.pdf (last visited
Feb. 28, 2023).
14
Section 509.032(7)(a), F.S.
15
See s. 163.3164(43), F.S., which provides that the state land planning agency is the Department of Economic Opportunity. BILL: CS/SB 714 Page 7
Regulated vacation rentals based solely on their classification, use, or occupancy.
16
This legislation grandfathered any local law, ordinance, or regulation that was enacted by a local
government on or before June 1, 2011.
17
In 2014, the Legislature revised the preemption to its current form with an effective date of
July 1, 2014.
18
Chapter 2014-71, Laws of Fla., amended s. 509.032(7)(b), F.S., and repealed the
portions of the preemption of local laws, ordinances, and regulations which prohibited
“restrict[ing] the use of vacation rentals” and which prohibited regulating vacation rentals “based
solely on their classification, use, or occupancy.”
19
Attorney General Opinions
The office of the Attorney General issued an Informal Legal Opinion on October 22, 2013,
regarding whether Flagler County could intercede and stop vacation rental operations in private
homes that were zoned, prior to June 1, 2011, for single-family residential use.
20
According to
the opinion, “due to an increase in the number of homes being used as vacation rentals in Flagler
County, many permanent residents in neighborhoods with vacation rentals have raised concerns
about the negative effects such rentals have on their quality of life and the character of their
neighborhood.” Flagler County had no regulation governing vacation rentals before the
grandfather date of June 1, 2011, established in s. 509.032(7)(b), F.S. The Attorney General
concluded that the county’s local zoning ordinance for single-family homes that predated June 1,
2011, did not restrict the rental of such property as a vacation rental and that the zoning
ordinances could not now be interpreted to restrict vacation rentals.
The Attorney General also issued an opinion on November 13, 2014, to the City of Wilton
Manors, concluding that s. 509.032(7)(b), F.S., does not permit the city to regulate the location
of vacation rentals through zoning, and the city may not prohibit vacation rentals that fail to
comply with the registration and licensing requirements in s. 509.241, F.S., which requires
public lodging establishments to obtain a license from the division.
21
In addition, the Attorney General issued an advisory opinion on October 5, 2016, addressing
whether a municipality could limit the spacing and concentration of vacation rentals through a
proposed zoning ordinance.
22
The Attorney General concluded that the preemption in s. 509.032,
F.S., allows local governments some regulation of vacation rentals, but prevents local
governments from prohibiting vacation rentals. Consequently, the Attorney General noted that a
16
Chapter 2011-119, Laws of Fla.
17
Id.
18
Chapter 2014-71, Laws of Fla. (codified in s. 509.032(7)(b), F.S.).
19
Id.
20
Florida Attorney General, Informal Legal Opinion to Mr. Albert Hadeed, Flagler County Attorney, regarding Vacation
Rental Operation-Local Ordinances, Oct. 22, 2013, (on file with the Senate Committee on Regulated Industries).
21
Op. Att’y Gen. Fla. 2014-09, Vacation Rentals - Municipalities - Land Use (November 13, 2014), available at
http://www.myfloridalegal.com/ago.nsf/printview/5DFB7F27FB483C4685257D900050D65E (last visited Feb. 28, 2023).
22
Op. Att’y Gen. Fla. 2016-12, Municipalities - Vacation Rentals – Preemption -
http://www.myfloridalegal.com/ago.nsf/Opinions/1F9A7D9219CF89A3852587AB006DDC58 (last visited Feb. 28, 2023). BILL: CS/SB 714 Page 8
municipality may not impose spacing or proportional regulations that would have the effect of
preventing eligible housing from being used as a vacation rental.
23
The Attorney General also opined that amending an ordinance that was enacted prior to June 1,
2011 will not invalidate the grandfather protection for the parts of the ordinance that are
reenacted.
24
The new provisions would be preempted by state law if they revise an ordinance in a
manner that would regulate the duration or frequency of rental of vacation rentals, even when the
new regulation would be considered “less restrictive” than the prior local law.
Public Lodging Non-Discrimination Law
Section 509.092, F.S., prohibits an operator of a public lodging establishment from denying
service or offering lesser quality accommodations to a person based upon his or her race, creed,
color, sex, pregnancy, physical disability, or national origin. An aggrieved person may file a
complaint pursuant to s. 760.11, F.S., of the Florida Civil Rights Act. Such complaints are
mediated, investigated, and determined by the Florida Commission on Human Relations.
25
III. Effect of Proposed Changes:
Preemptions
The bill amends s. 509.032(7), F.S., to preempt the regulation of advertising platforms to the
state. The bill also amends s. 509.032(7), F.S., to preempt the licensing of vacation rentals to the
state.
The bill permits any “grandfathered” local law, ordinance, or regulation adopted on or before
June 1, 2011, to be amended to be less restrictive or to comply with local registration
requirements. Additionally, a local government that had such a grandfathered regulation on June
1, 2011, may pass a new, less restrictive ordinance.
Definition of “Advertising Platform”
The bill creates s. 509.013(17), F.S., to define the term “advertising platform.” Under the bill, an
advertising platform:
Provides an online application, software, website, or system through which a vacation rental
located in this state is advertised or held out to the public as available to rent for transient
occupancy;
Provides or maintains a marketplace for the renting by transient occupancy of a vacation
rental; and
Provides a reservation or payment system that facilitates a transaction for the renting by
transient occupancy of a vacation rental and for which the person collects or receives,
23
Id.
24
Op. Att’y Gen. Fla. 2019-07, Vacation rentals, municipalities, grandfather provisions (August 16, 2019) available at
http://www.myfloridalegal.com/ago.nsf/Opinions/933B3706FADB00CA85258458006F4CFA (last visited Feb. 28, 2023).
25
See Florida Commission on Human Relations, Public Accommodations, https://fchr.myflorida.com/public-
accommodations (last visited Feb. 28, 2023). BILL: CS/SB 714 Page 9
directly or indirectly, a fee in connection with the reservation or payment service provided
for such transaction.
Local Registration of Vacation Rentals
Under the bill, a local government may require vacation rentals to be registered. The registration
fee may not exceed $50 for processing an individual registration application, or $100 for
processing a collective registration application. A local government may impose a fine for failure
to register a vacation rental.
The bill establishes limits for a local government registration program. A local registration
program may only require an owner or operator of a vacation rental to:
Register no more than once per year; however, a new owner may be required to submit a new
application for registration;
Submit identifying information;
Obtain any required tax registrations,
Obtain a vacation rental license from the division with 60 days of after local registration;
Obtain all required tax registrations, receipts, or certificates issued by the Department of
Revenue, a county, or a municipal government;
Update required information on a continuing basis to be current;
Comply with parking standards and solid waste handling and containment requirements so
long as such standards are not imposed solely on vacation rentals;
Designate a responsible person who is available at all times to respond to complaints by
telephone; and
Pay all recorded municipal or county code liens.
Additionally, the bill requires local governments to accept or deny a registration application
within 15 days of receipt of an application. The vacation rental owner or operator may agree to
an extension of this time period. Such notice may be provided by mail or electronically.
If a local government denies an application, the notice of denial may be sent by United States
mail or electronically. The notice must state with particularity the factual reasons for the denial
and the applicable portions of an ordinance, rule, statute, or other legal authority for the denial. A
local government cannot deny a registration application if the applicant cures the identified
deficiency.
Upon the acceptance of a registration application, the local government must assign a unique
registration number to the vacation rental or other indicia of registration and provide such
registration number or other indicia of registration to the owner or operator of the vacation rental
in writing or electronically.
The bill authorizes a local government to terminate a registration or to refuse to renew a
registration when:
The operation of the subject premises violates a local law, ordinance, or regulation;
The premises and its owner are the subject of a final order or judgment lawfully directing the
termination of the premises’ use as a vacation rental. BILL: CS/SB 714 Page 10
Additionally, a local government may withdraw its acceptance of a registration on the basis of an
unsatisfied recorded municipal or county code lien.
Regulation of Vacation Rentals by the Division
The bill amends s. 509.241(2), F.S., relating to the license application process for vacation
rentals, to require application for a vacation rental license to include the local registration
number, if applicable. Additionally, the bill authorizes the division to issue temporary licenses to
permit the operation of the vacation rental while the license application is pending.
The bill also amends s. 509.241(3), F.S., to require the owner or operator of a vacation rental
offered for transient occupancy through an advertising platform to display the vacation rental
license number and local registration number, if applicable.
The bill amends s. 509.261, F.S., to authorize the division to revoke, refuse to issue or renew, or
suspend for a period of not more than 30 days a vacation rental license when:
The operation of the subject premises violates the terms of an applicable lease or property
restriction, including any property restriction adopted pursuant to chs. 718, 719, or 720,
F.S.,
26
The owner or operator fails to provide proof of registration, if required by local law,
ordinance, or regulation;
The registration of the vacation rental is terminated by a local government as provided in s.
509.032(7)(b)5;
The premises and its owner are the subject of a final order or judgment lawfully directing the
termination of the premises’ use as a vacation rental.
Under the bill, the division may suspend for a period of not more than 30 days a vacation rental
license when the owner or operator has been found by the code enforcement board to have
committed two or more code violations related to the vacation during a period of 90 days. The
division shall issue a written warning or notice and provide an opportunity to cure a violation
before commencing any legal proceeding.
Requirements for Advertising Platforms
Effective January 1, 2023, the bill creates s. 509.243, F.S., to provide requirements, including tax
collection and remittance requirements for an advertising platform.
Advertising and Reporting Requirements
Under the bill, an advertising platform must:
Require that a person who places an advertisement for the rental of a vacation rental to:
o Include the vacation rental license number and the local registration number, if
applicable; and
26
Chapters 718, 719, or 720, F.S., relate to the regulation and governance of condominium, cooperative, and homeowners’
associations, respectively. BILL: CS/SB 714 Page 11
o Attest to the best of their knowledge that the license number and the local registration
number, if applicable, for the vacation rental property are current, valid, and accurately
stated in the advertisement.
Effective July 1, 2023, display the vacation rental license number in all advertisements after
it has first verified the vacation rental property’s license number with the DBPR, and then re-
verify the license number on a quarterly basis.
Remove from public view an advertisement or listing from its online application, software,
website, or system within 15 business days after being notified by the division in writing that
the subject advertisement or listing for the rental of a vacation rental located in this state fails
to display a valid license number issued by the division.
Adopt an anti-discrimination plan and inform its users of the public lodging discrimination
prohibition found in s. 509.092, F.S.
By July 1, 2023, the division must maintain vacation rental license information in a readily
accessible electronic format sufficient to facilitate prompt compliance.
The bill provides processes for the division to issue a cease and desist order for any person who
violates ch. 509, F.S. The bill authorizes the division to seek an injunction or a writ of mandamus
to enforce a cease and desist order. If the Department of Business and Professional Regulation
(DBPR) is required to seek enforcement of the notice for a penalty pursuant to s. 120.69, F.S., it
is entitled to collect its attorney fees and costs, together with any cost of collection.
The bill authorizes the division to fine an advertising platform an amount not to exceed $1,000
for a violation of the provisions in the bill or rules of the division.
The bill provides that the advertising platform requirements in the bill do not create a private
right of action against advertising platforms.
Tax Collection and Reporting Requirements
The bill creates s. 509.243(4), F.S., to require advertising platforms to collect and remit taxes due
under ss. 125.0104,
27
125.0108,
28
205.044,
29
212.03,
30
212.0305,
31
and 212.055, F.S.,
32
resulting
from the reservation of a vacation rental property and payment therefor through an advertising
platform.
The bill also amends s. 212.03(3), F.S., to include the tax collection and remittance requirements
for advertising platforms within ch. 212, F.S., and to:
Provide that the taxes an advertising platform must collect and remit are based on the total
rental amount charged by the owner or operator for use of the vacation rental.
27
Section 125.0104, F.S., relates to the local option tourist development tax.
28
Section 125.0108, F.S., relates to the tourist impact tax in areas within a county designated as an area of critical state
concern.
29
Section 205.044, F.S., relates to the merchant business tax measured by gross receipts.
30
Section 212.03, F.S., relates to the transient rentals tax.
31
Section 212.0305, F.S., relates to convention development taxes.
32
Section 212.055, F.S., relates to discretionary sales taxes. BILL: CS/SB 714 Page 12
Exclude service fees from the calculation of taxes remitted by an advertising platform to the
Department of Revenue (DOR), unless the advertising platform owns, is related to, operates,
or manages the vacation rental.
Require the DOR and other jurisdictions to allow advertising platforms to register, collect,
and remit such taxes.
The bill also amends s. 509.013, F.S., to include the “merchant business taxes” taxes imposed
under s. 205.044, F.S., as one of the tax account numbers vacation rental owners or operators
must include in their advertisement on an advertising platform and that the advertising platforms
must collect and remit.
The bill authorizes the DOR to adopt emergency rules, which are effective for six months and
may be renewed until permanent rules are adopted. This emergency rulemaking authority expires
on January 1, 2023.
Community Associations
The bill provides that the application of vacation rental provisions created by the bill do not
supersede any current or future declaration or declaration of condominium, cooperative
documents, or declaration of covenants or declaration for a homeowners’ association.
Effective Date
The bill takes effect July 1, 2023. However, the provisions of s. 509.243, F.S., relating to
advertising platforms, take effect January 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Article VII, Section 19 of the Florida Constitution requires a “state tax or fee imposed,
authorized, or raised under this section must be contained in a separate bill that contains
no other subject.” A “fee” is defined by the Florida Constitution to mean “any charge or
payment required by law, including any fee for service, fee or cost for licenses, and
charge for service.” BILL: CS/SB 714 Page 13
Article VII, Section 19 of the Florida Constitution also requires that a tax or fee raised by
the Legislature must be approved by two-thirds of the membership of each house of the
Legislature.
The bill does not impose or authorize a state tax or fee. The bill provides that a local
government may not require a registration fee of more than $100. Under the bill, a local
government is not required to charge a registration fee.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference determined that the provisions in the bill that
require advertising platforms to collect and remit state and local sales taxes have no fiscal
impact.
33
B. Private Sector Impact:
Indeterminate. Vacation rental owners may incur local registration costs of up to $100 if
the local government in which the vacation rental is located adopts an ordinance, law, or
regulation consistent with the provisions of this bill.
C. Government Sector Impact:
The Department of Business and Professional Regulation has not provided a fiscal
analysis for this bill.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 212.03, 509.013,
509.032, 509.241, 509.243, 509.261, 159.27, 212.08, 316.1955, 404.056, 477.0135, 509.221,
553.5041, 559.955, 705.17, 705.185, 717.1355, and 877.24.
33
Revenue Impact Results, Revenue Estimating Conference, Mar. 3, 2023 (on file with the Regulated Industries Committee). BILL: CS/SB 714 Page 14
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Regulated Industries on March 14, 2023:
The CS amends s. 212.03, (2), F.S., to:
Add “as amended” after "Internal Revenue Code of 1986";
Remove references to s. 205.044, F.S., relating to a tax not collected by the DOR; and
Delete the reference to “department,” i.e., the Florida Department of Revenue, in the
flush left provision because this is a provision that is only relevant to counties that
self-administer the taxes imposed or authorized in ch. 125, F.S., including the local
option tourist development tax.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.