my cousin has been living at an extended stay suite in Orlando, fl for I think 4 months or so. And he has been questioning what is an "orange county luxury tax"? I told him what an luxury tax is, but I am unsure what an orange county one is. Does this tax exist and if so how much is taxed? Is it legal for...
Actually extended stay is treated like a hotel in Florida and taxed accordingly. The other responder mistook it for a rental apartment which would not be taxed.
Sales tax in Orange County is 6.5% (it differs by county). Orange County also has a hotel tax of 6% in addition to the sales tax. Sounds like they just have the wording of the hotel tax mislabeled as luxury tax, but it is being collected at the correct rate.
So 6.5% of $179 is 11.64 and 6% of $179 is 10.74. So the receipt is correct.
Dear n: Sounds fishy! Look at the Florida Dept of Revenue and their sales tax bulletin on page 12, rental units are exempt from sales tax. Your issue is with Orange county and their use tax(luxury). See Orange county dept of taxation or call the county dept of taxation. The state gives the counties authority to levy additional taxes but I could not find any specific "luxury" tax references. Sometimes the length of the lease is a factor as long term leases are exempt while over night are taxed.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor