Thinking about listing your Pace property as a short-term rental but worried about taxes tripping you up? You are not alone. Between state sales tax, county surtax, and Santa Rosa’s bed tax, it can feel complex fast. This guide walks you through the exact taxes that apply, how to register and file, and practical steps to stay audit ready in Pace. Let’s dive in.
Taxes that apply in Pace
Florida transient rental tax (6%)
Florida taxes transient rentals at 6% when the stay is six months or less. See the statewide rules in Florida Statute §212.03 for the base requirement and definitions of transient rentals. Review the statute.
Santa Rosa local sales surtax (1% in most areas)
Santa Rosa County adds a 1% discretionary surtax that is collected with the state sales tax. Confirm your exact rate based on the property address and DOR guidance on discretionary surtax. You can see the current county surtax rate on Avalara’s Santa Rosa County page and learn how surtax works from Florida DOR’s discretionary surtax page.
Santa Rosa County Tourist Development Tax (5%)
Santa Rosa County imposes a 5% Tourist Development Tax on rentals of six months or less. This is filed and paid to the Santa Rosa County Clerk of Court, not the state. Learn more on the County’s Tourist Development Tax page and the Clerk of Court’s TDT page.
What guests typically pay
Most Pace bookings incur about 12% tax on the rental charge. That is 6% state tax, 1% county surtax, and 5% county TDT. Example: $600 rent results in $72 tax, for a $672 guest total.
Register and file your taxes
Register with Florida DOR
If you rent for six months or less, register as a sales tax dealer so you can collect and remit the 6% state tax and the local surtax. Apply online using the Florida Business Tax Application (DR‑1). You will file sales tax on Form DR‑15 through the DOR’s File and Pay system. See filing details on the Florida Sales and Use Tax page.
Register for Santa Rosa’s TDT
Sign up with the Santa Rosa County Clerk of Court to collect and remit the 5% TDT. Returns are typically due monthly. Get instructions and due date details on the County’s TDT page and the Clerk’s site.
Filing cadence and payments
- State sales and surtax: file on your assigned schedule using Form DR‑15.
- Santa Rosa TDT: file monthly with the Clerk of Court unless the Clerk assigns a different schedule.
What charges are taxable
Florida and Santa Rosa County generally tax the total rental charge for stays of six months or less. That often includes items like cleaning fees, damage waivers, and other mandatory charges paid by the guest. Treat these fees as taxable unless a specific exclusion applies. See the County’s TDT guidance for definitions and examples.
Platforms and your responsibility
Some marketplaces collect certain taxes, and others do not. Santa Rosa County notes that a prior Airbnb TDT collection agreement ended in 2021. Do not assume platforms remit TDT or state tax for you. Ask your platform which taxes it collects in Santa Rosa County, then keep the statements that show amounts remitted. If an agent fails to remit tax, Florida rules make clear the owner can remain responsible. See Florida Administrative Code 12A‑1.061 for responsibility and recordkeeping expectations.
Pace compliance checklist
- Confirm your property’s jurisdiction. Most of Pace is unincorporated Santa Rosa County. If your property sits inside a city, check that city’s rules too. Start with the County’s TDT page.
- Register with Florida DOR for sales tax and surtax using Form DR‑1. File returns via DR‑15.
- Register with the Santa Rosa County Clerk for TDT and file monthly. Use the County’s TDT resource and the Clerk’s page.
- Verify platform handling of taxes in writing. Keep platform remittance reports if they collect any tax.
- Obtain any required local Business Tax Receipt and check zoning. Start with the Tax Collector’s Business Tax Receipt qualifications.
- Set up simple bookkeeping. Save guest invoices, payouts, cleaning and deposit records, and copies of all DOR and TDT returns. See DOR’s sales tax guidance for best practices.
- Use a CPA for edge cases. This helps with multi-property operations and any past-due remediation.
Stay organized and audit ready
Create a monthly folder for each property. Include your DR‑15 filing, TDT return, bank proof of payment, and platform statements. If a platform remits any portion, keep the platform’s tax detail for your records. Florida’s rules expect you to retain documentation that supports the tax you collected and remitted. See FAC 12A‑1.061 for owner responsibilities.
If you are behind on taxes
Do not wait. Santa Rosa County offers a TDT Voluntary Compliance Program that may waive penalties if you come forward before enforcement contact. Interest may still apply. Start with the County’s Tourist Development Tax page or contact the Clerk’s office to discuss options.
Federal income tax basics
Report your gross rental receipts on your federal return. If you provide substantial services during the stay, income might be reported on Schedule C. Otherwise, most short-term rental income is reported on Schedule E. The 14‑day rule can exclude income in very limited cases when you rent fewer than 15 days a year. Review IRS Publication 527 and consult a tax professional for your situation.
Local business tax receipt and zoning
Before hosting, confirm if you need a local Business Tax Receipt and check zoning for your location. The Santa Rosa County Tax Collector outlines who needs a BTR and how to apply. See the Business Tax Receipt qualifications.
Work with a local advisor
Clear tax steps are part of running a reliable short-term rental. If you are weighing a Pace property or optimizing an existing one, you deserve appraisal-grade insight on pricing, value, and exit strategy. For local, valuation-backed guidance that supports your investment decisions, connect with G. Jeffrey White.
FAQs
What tax rate do I collect for a Pace short-term rental?
- In most of Pace the combined rate is about 12% of the rent. That includes 6% state tax, 1% county surtax, and 5% TDT. Verify your address specifics with Florida DOR guidance on discretionary surtax and the County’s TDT rules.
Are cleaning fees for Pace short-term rentals taxable?
- Yes, cleaning and other mandatory charges are generally part of the taxable rental base for both sales tax and TDT unless a specific exclusion applies, per County guidance.
Does Airbnb or another platform collect Santa Rosa TDT for Pace listings?
- Not always. A prior Airbnb TDT agreement ended in 2021. Confirm in writing which taxes your platform collects and keep the statements that show remittances.
When are Santa Rosa TDT returns due for Pace properties?
- Returns are typically due monthly to the Santa Rosa County Clerk of Court. Check the Clerk’s TDT page for current due dates and online filing options.
How do I report Pace short-term rental income to the IRS?
- Most hosts report on Schedule E unless they provide substantial services during the stay, which can shift reporting to Schedule C. See IRS Publication 527 for rules and examples.
Do I need a local Business Tax Receipt for a Pace rental?
- Many hosts do. Review the Santa Rosa County Tax Collector’s qualifications for a Business Tax Receipt and confirm zoning before operating.
