Tampa is the third-largest city in Florida. Thus, this city covers a geographical area in the Sunbelt region of the USA. The average winter temperature of this city is 4-degrees Celsius and it never goes below -2-degrees Celsius. Hence, Canadian Snowbirds visit this city to get a taste of pleasant winter. The scenic beauties and the facilities to enjoy various recreational activities make their vacations colorful.
For many years, Tampa has been experiencing rapid growth in sectors like tourism, finance, healthcare, retail, shipping, sports and real estate. In this city, there are also many units and offices of various famous banks and telecommunication companies. Hence, hotel and rental businesses have flourished rapidly. Canadian Snowbirds don’t lose these opportunities and own rental properties in this city to offer residential and commercial rental services. They choose efficient License and Tax Consultants to deal with their non-residents tax issues.
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Below, we have discussed some rules and facts that you need to understand to run a rental business in Tampa
Tax imposition rules
If you own a rental property in Tampa, then you have to pay 5.5% of the payment made by your occupant for the periods beginning on or after 1st January 2020.
You need to pay local sales surtax imposed by the Hillsborough County, the body that holds the jurisdiction of the city of Tampa. You need to pay a local sales surtax of 2.5% for running a rental business in Tampa.
Taxes apart from rental taxes
You need to pay a 6% tax on your collected parking charges. For charges or rentals of tangible property, you have to pay a state tax of 6%. Also, if you collect amounts from your tenants for providing janitorial, security and pest control services, you need to pay a state tax of 6% rate on the total collected amount. You cannot use these amounts in the $5,000 county surtax limitation rule. If you add these amounts with the rental amount of your tenant, then lower commercial rental tax rates will be imposed on them.
At The Accounting & Tax, we provide important information to our Canadian clients about US non-residents tax filing requirements and other tax rules. We provide them with proper directions to arrange their passport and visa formalities. You will be able to migrate at a nominal cost and can start your rental business without any hassle.