Sarasota updates short-term rental law, including lodging tax compliance

Sarasota, Florida, has updated its short-term rental (STR) law to clarify the rules and boost enforcement, and this includes lodging tax compliance.

Sarasota STR hosts are required to obtain a vacation rental certificate of registration and undergo an inspection to advertise or operate STRs rented for less than 30 days. The registration requirement applies to single-, two-, three- or four-family properties in neighborhoods zoned for residential and multifamily use. It doesn’t apply to owner-occupied STRs, condominiums, or cooperatives. Registration must be renewed annually. The city can fine operators or suspend their certificate of registration for violations.

Owners are required to apply for a Local Business Tax Receipt Certificate and designate a responsible party who can be available by telephone 24 hours a day, 7 days a week to respond to issues with the rental property. The responsible party must be available to come to the STR within one hour.

STRs must also meet safety standards, and all guest parking must be located on-site. Occupancy in residential single-family zone districts is limited to two people per bedroom, plus two additional people or 10 people total, whichever is less. In residential multiple-family zone districts, STRs may host up to 12 people at a time.

Under the latest amendments to the city ordinance, STR owners must:

• Provide proof, such as the Florida Homestead Exemption, if they claim an owner-occupancy exemption 
• Provide supporting information to support a certificate amendment if requested
• Contact the city within 30 days after the registration application approval date to schedule any required inspection
• Post a map of a hurricane evacuation route to the nearest shelters
• Provide supporting information to support the change of designated responsible party if requested

The amendments also:

• Specify that all registration fees are nonrefundable
• Simplify the law to state that a swimming pool, spa, or hot tub must comply with current state standards
• Clarify that advertising includes online advertising and all media

The STR ordinance doesn’t apply to every neighborhood in the city, a fact that came as a surprise to commissioners as they were working on the updates. Districts with a mix of residential, commercial, and multi-family zoning, such as Downtown Edge, are exempt. Commissioners directed city staff to explore the idea of expanding the law to cover those areas as well.

STR operators in Sarasota are required to observe local lodging tax regulations. They must register for Sarasota County tourist development tax, collect the tax from guests for stays of six months or less, and remit the tax. STR marketplaces Airbnb and Vrbo collect and remit local lodging taxes on behalf of their Sarasota listings, but Sarasota operators must collect tax on stays booked through other platforms.

Florida STR operators must also comply with state requirements, including obtaining a state business license, registering for a state tax certificate, and collecting and remitting state-administered lodging taxes when they receive payments directly from guests. Airbnb and Vrbo collect and remit state lodging taxes on behalf of their Florida listings.

Recent city amendments also affect tax compliance for Sarasota STR hosts. Under the changes, STR owners are:

• Required to show they have made arrangements for state and county lodging taxes
• No longer required to provide proof of Sarasota County Local Business Tax upon registration, since that tax was repealed in 2024

Avalara MyLodgeTax can help STR hosts automate and simplify lodging tax compliance on the local and state level, including tax registration and filing. For more on vacation rental lodging taxes in Florida, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.