Florida is one of a handful of places in the U.S. where vacation homes are a standard vacation stay option. As such, the rules and regulations in Orlando and Kissimmee are fairly set, though not always straightforward. If you intend to comply with them, the first hurdle is the biggest: the Orlando and Kissimmee zoning laws. Take note that Orlando is part of Orange county, while neighboring Kissimmee, is actually part of Osceola county. Only certain areas allow short-term rentals (less than 180 days), and even within those areas you may need to get approval.
If you’re in the right zone, here’s a quick rundown of the licenses, taxes and fees required to rent your vacation home in Orlando and Kissimmee.
Licenses for Orlando and Kissimmee
- DBPR License (Florida Department of Business & Professional Regulation)
- Complete a balcony inspection every three years as part of the DBPR License
- Florida Business Tax Application (to collect sales tax)
Additional Licenses for Orlando
- Orlando Business Tax Receipt (aka Business License, or proof of payment of the business tax)
- Orange County Business Tax Receipt
- Orange County Tourist Development Tax Account
Additional Licenses for Kissimmee
- Kissimmee Business Tax Receipt (aka Business License, or proof of payment of the business tax)
- Osceola County Business Tax Receipt
- Kissimmee Tourist Development Tax Account
Taxes for Orlando and Kissimmee
With over 7,000 vacation rentals on HomeAway along in Orlando and Kissimmee, the state and counties want to make sure they collect every penny of the taxes owed by owners.
Collected by the State
There is a 6% sales tax required by the state of Florida, with a 0.5% discretionary sales surtax for Orange County and 1% discretionary sales surtax for Osceola County.
Collected by each County
Both counties also collect a 6% tourist development tax.
Fees for Orlando and Kissimmee
In addition to taxes, there are fees associated with doing business in Orlando and Kissimmee. The first is the DBPR license fee which runs $150 per year for a single vacation rental, plus a $10 Hospitality Education Program (HEP) annual fee, and a $50 one time application fee. There is a $10 per unit annual fee for each additional vacation rental unit you license. For example, if you operate a duplex, you’ll owe $170 per year in license and HEP fees, plus a one time $50 application fee.
You’ll also be responsible for a business tax receipt which is proof of payment of the business tax. In Orlando and Kissimmee the business tax receipts vary in cost, but expire yearly. There’s also an Orange County business tax receipt which varies in cost and expires yearly, along with an Osceola County business tax receipt at $30 per year.
The information above is intended for informational purposes only; it is not legal advice and should not be relied upon as such. If you need legal advice, you should consult a licensed attorney in your area.