Understanding Different Kinds of Taxes in Kissimmee & Orlando

The world of taxes can be a daunting task for many, especially in the state of Florida. Kissimmee, the county seat of Osceola County, is no exception. From property taxes to sales taxes, understanding the different kinds of taxes in Kissimmee can be confusing. To help make taxes easier to understand, the following is a comprehensive overview of the various taxes in the city of Kissimmee.

Taxes in Kissimmee and in other cities are generally separated into two categories: state and local taxes. For state taxes, the Florida sales tax rate is 7.5%, which is applicable to most retail sales. For property taxes, the rate is 1.5 mills, and the tax collector’s office is able to provide additional information about payment schedules and estimated amounts.

Overview of Taxes in Kissimmee

Kissimmee’s tax system is composed of different tax types and tax rates. Businesses, citizens, and nonresidents earning income in the city are subject to income tax. Sales tax rates in Kissimmee are generally 7.5% for the majority of goods and services, with an additional 1.5% charged in some areas of the county.

The Florida Department of Revenue provides a website to look up 2023 sales tax rates, including those for Kissimmee, so businesses can determine the lowest local sales tax rates to charge customers.

Different Tax Types

Transitioning to the topic of taxes in Kissimmee, there are a variety of different tax types that businesses and individuals must be aware of. Businesses must obtain a certificate to apply sales tax rates for Kissimmee, and individuals must file their tax return each year for tax preparation.

Florida’s state sales tax is 6%, but certain counties, like Osceola County, have an additional 1.5%. Kissimmee’s total tax rate is 7.5%. Real estate is also subject to tax. Those who own a deed must update their address with the IRS and their local tax collector’s office. Federal law provided by Avalara, a copy of the code, or a document can help determine the purchase of gross tax needs.

Tax Rates

Moving on to Kissimmee’s tax rates, taxes on real property, such as land and buildings, are assessed by the Osceola County Property Appraiser in December of each year. The owner of the property is responsible for claiming and certifying the value of their property and the burden of proof is on the owner to prove the value of the property.

To issue the tax bill, the Property Appraiser must certify the value to the Tax Collector’s office by the end of March. Bookkeeping credits and monthly payments are available for individuals and corporations who qualify.

Who Is Subject to Tax

Having discussed the different types of taxes in Kissimmee and the tax rates associated with them, the next step is to understand who is subject to these taxes. Generally, businesses or individuals with a 407 area code are subject to taxation by Osceola County. However, it is important to note that individuals with investments, rentals, or mobile homes within the county are also subject to taxation.

In order to find out more information regarding who is subject to taxation, the county has published a full-service publication which provides all the necessary paperwork for filing taxes in the region. This publication can be accessed online and provides a comprehensive guide for residents and businesses. Furthermore, it includes information regarding the calendar year 2001, which is the year when taxation started in the county.

Sales Tax

As a tax accountant, it is essential to understand the types of goods and services subject to tax, the taxable locations and the tax-exempt items. Goods that are subject to taxation include tangible items such as food, clothing, furniture, electronics, and automobiles. Services, such as utilities, internet, cable, and insurance, may also be taxable.

The location of the purchase is important, as taxes may vary from state to state and county to county. For example, sole proprietors in the U.S. may deliver taxable goods outside their state of residence and still be subject to the local tax rate.

Types of Goods and Services Subject to Tax

Moving on from the overview of Kissimmee taxes, let’s focus on the sales taxes levied in the area. Types of goods and services subject to tax include items such as prepared food, vehicle rentals, hotel accommodations, and tickets to sporting events or concerts.

These products and services are subject to both the state and local sales taxes, which in the Kissimmee area is a combined rate of 7.5%. Taxable locations in the area include any type of store or business located within the city and county limits that sell taxable goods or services. Tax-exempt items, on the other hand, are items such as food that is consumed off-site, medical supplies, prescription drugs, and some types of agricultural supplies.

Taxable Locations

The taxable locations in Kissimmee are varied and abundant. Services provided within the city limits, as well as goods purchased within the city, are subject to the applicable state and local sales taxes, which is currently 7.5%. The payment of sales taxes is due to the Osceola County Tax Collector’s Office on a monthly basis.

Businesses located outside the city limits of Kissimmee are also taxed. Companies located in Florida must register with the Department of Revenue and obtain a sales tax certificate. The certificate is used to collect sales taxes in Kissimmee and other parts of the state. The certificate must be renewed every five years or when ownership of the business changes.

Tax-Exempt Items

The bright side of Kissimmee taxes is the variety of items exempt from the 7.5 percent Florida sales tax. Tax-exempt items include groceries, medicines, residential utilities, farm supplies, and machinery and chemicals used in manufacturing. Even tangible items such as boats, vessels, and aircraft purchased for personal use are exempt. Moreover, when purchasing items from a qualified nonprofit organization, the sales tax may be waived.

Certain services and digital products are also exempt from the sales tax, such as the rental of real estate, services performed by a registered nurse, and the sale of natural gas and steam by a utility. Furthermore, communication services such as cable television and internet access are generally exempt from the Florida sales tax.

Taxable Items

Moving on from the sales tax discussion, Use Tax applies to those who buy or receive taxable goods and services from out-of-state. When it comes to taxable items, Use Tax applies to tangible personal property, such as computers, furniture, and jewelry; digital products, such as software and downloads; and services, such as repairs, installation, and maintenance.

It is important to remember that Use Tax applies to any item that would have been subject to sales tax had it been purchased in-state. All out-of-state purchases are taxable, regardless of the amount purchased, unless an exemption applies.

Tax Calculation and Payment

Moving on to Tax Calculation and Payment, the use tax is calculated by multiplying the total purchase price of taxable items by the local rate. It is important to note that any local use tax due must be paid in addition to any state use tax due. The rate of use tax can differ from the sales tax rate depending on the jurisdiction where the item is used or consumed. For instance, the rate in Osceola County is 7.5%, while the rate in Kissimmee is 1.5%. It is the responsibility of the business or individual using the item to determine the appropriate rate.

Payment of the use tax is due on or before the 20th day of the month following the month in which the item was used, stored, or consumed.

Real Estate Tax

Real estate tax is an important form of taxation that affects property owners across the state. Property tax rates, taxable properties, and property tax exemptions are key components of this taxation structure.

Property tax rates are determined by a variety of factors, such as the value of the property and the local tax rate. Taxable properties are those deemed to have a certain level of value or use that is subject to taxation, such as income-producing real estate. Property tax exemptions may be available for certain types of properties, such as those owned by not-for-profit organizations.

Property Tax Rates

Moving on from Use Tax to Real Estate Tax, one of the most important aspects to consider is the Property Tax Rate. This rate is determined by a local government jurisdiction and is based on the value of a particular property. Property Tax Rates vary among different locations and are typically expressed as a percentage of the property’s value.

For example, in Osceola County, Florida, the Property Tax Rate is 1.5%. It is important to note that not all properties are subject to taxation, as there are certain types of properties that are exempt from property taxes. Additionally, Property Tax Rates may change from year to year, so it is important to stay updated on the latest rate.

Taxable Properties

Continuing the discussion of real estate tax, the next area to consider is the taxable properties in Osceola County. Residential, business, and agricultural properties are all subject to taxation, with taxation based on the property’s fair market value as of January 1st of the tax year. The property’s value is determined by a professional appraiser hired by the county and the tax rate is set by the county commissioners.

Mobile homes are also taxable, with the tax rate determined by the age of the home. The taxation amount is based on the assessed value of the home at the time of purchase, plus adjustments to the assessed value over time. Non-profit organizations, churches, and governmental agencies are all exempt from taxation, though there are certain exceptions for specific organizations.

Property Tax Exemptions

Having discussed the use tax and real estate tax rates in Osceola County, let’s now take a closer look at property tax exemptions. These exemptions are allowed for certain types of properties that otherwise may be subject to taxation. One such exemption is the homestead exemption, which applies to a taxpayer’s primary residence.

Other exemptions may be available depending on the location and type of property, such as agricultural land, veterans’ disability, or green space. To be eligible for an exemption, owners must typically provide proof of ownership, such as a deed or certificate, and may need to provide additional documentation to verify the exemption. Furthermore, exemptions may need to be reapplied for and/or updated each year.

Tourism Development Tax

In Osceola County, businesses subject to Tourism Development Tax include hotels, motels and other lodgings; recreational vehicle parks; timeshares; mobile home parks; marinas; and golf courses. The tourist development tax rate is 1.5%, with a maximum of 7.5%. Transactions that are taxable include renewal fees, points, sale of rental and timeshares, and rental of recreational vehicles, mobile homes, marinas, and golf courses. Additionally, businesses must apply for and receive a certificate of registration from the county tax collector’s office.

Types of Businesses Subject to Tax

As the tourism industry continues to boom in Osceola County, it is important to understand the different types of businesses subject to the Tourism Development Tax. The tax applies to any business that sells products, services, or rentals to tourists and visitors. These include hotels, motels, bed and breakfasts, vacation rentals, retail stores, restaurants, bars, amusement parks, and more.

All of these businesses are required to register with the county and collect the applicable taxes. Businesses need to provide customers with a detailed receipt that includes the total amount of tax paid. Failure to comply with the regulations can result in serious penalties and fines.

Tax Rates

Transitioning from the discussion of Real Estate Tax, the Tourism Development Tax is also an important consideration for businesses in Osceola County. Specifically, the Tax Rates associated with the Tourism Development Tax can vary greatly, depending on the type of business and the taxable transactions they engage in.

For example, a full-service hotel in Kissimmee will be taxed at a rate of 7.5%, whereas a rental property in the same city will be taxed at a rate of 1.5%. Moreover, the Tax Rates may also fluctuate with changes in the city or state laws, which is why it is important for business owners to keep track of their applicable Tax Rates and make sure they are up to date with any changes that may occur.

Taxable Transactions

The last piece of the puzzle for tourists and businesses alike is understanding what transactions are subject to the Tourism Development Tax. Transactions that are taxable include the rental of hotel rooms, vacation rental homes, or mobile homes in Osceola County, as well as any goods or services provided to guests.

In addition, any taxable transactions conducted in unincorporated parts of the county must pay the additional local sales tax. Businesses that are subject to the tax must pay the full amount, including any additional local tax, to the county’s Tax Collector’s Office.

It is important to note that any business that sells taxable goods and services in the unincorporated parts of the county must collect and remit the applicable tax.

Business Tax

Business tax is an area where many types of businesses are subject to taxation. Depending on the type of business, the tax rate levied by the government may vary. Taxable transactions vary in terms of the goods and services being sold, and the rate of taxation may also differ.

The tax rate for businesses such as retail outlets and restaurants is determined by the state in which the business is located. For companies that receive income from investments, the tax rate is determined by the federal government. Businesses that engage in international trade may also be subject to different tax rates.

Types of Businesses Subject to Tax

Making the shift from Tourism Development Tax to Business Tax, the types of businesses subject to taxation are vast. From sole proprietorships to corporations and partnerships, business owners are required to pay taxes on a variety of transactions. Mobile homes, rental properties, and investments are all subject to taxation, and a full-service tax accountant can help business owners navigate the best course of action for their specific tax needs.

In order to determine which taxes are applicable, business owners must look up the current Florida sales tax rate, research local taxes, and assess the gross income of the business. Documents such as copies of deeds, property tax certificates, and a company ID must be provided to the tax collector’s office in order to certify the business and apply for a tax return.

Tax Rates

Switching gears, let’s take a look at the different tax rates businesses are subject to in Osceola County. Depending on the type of business, there can be a range of tax rates that apply. This includes rates for income, sales, and property tax.

When it comes to sales tax, the rate varies depending on the city within Osceola County and whether the business is a full-service or limited-service business. The rate for Kissimmee businesses can range from 7.5 to 8.5%. In addition, businesses may be required to pay an additional 1.5% for state sales tax.

Taxable Transactions

Transitioning from tourism development tax, business tax covers a range of taxable transactions that must be reported and paid by companies in Osceola County, Kissimmee, and the rest of Florida. Taxable transactions subject to business tax include purchase of goods, services, or real estate; sale of goods, services, or real estate; renting of property; and other related activities.

Businesses must consider the proper tax rates when computing the amount of money to be paid to the government. The rates may vary depending on the specific kind of business, its location, and the type of transaction. It is important for businesses to stay up to date with changes in tax rates to ensure they are in compliance and receive the most favorable rates as possible.

Income Tax

After dealing with the complexities of business tax, it’s time to turn our attention to income tax. As a full-service tax accountant, I am here to make the process of filing an income tax return easier for you.

Income tax is a charge levied by the federal government on the income of individuals, corporations, trusts, and estates. It is based upon an individual’s income, filing status, and other factors. The amount of tax an individual pays is determined by the amount of income that is taxable.

The Internal Revenue Service (IRS) collects income tax from individuals and businesses. Taxpayers are required to file a tax return annually, which is due by April 15th of the following year. Taxpayers may be able to file for an extension if they need more time to file.

I can help you determine what deductions and credits you may be eligible for, and I can provide guidance on the types of income that are taxable. I can also help you file your income tax return accurately and efficiently.

Other Taxes

Taxes beyond the traditional Property, Income, and Sales Tax exist and are applicable in Osceola County. For instance, Airport Tax applies to certain air carriers operating out of Kissimmee Airport. Communications Services Tax is charged on the services of cable, satellite, telephone, and other communication services.

Finally, Convention Development Tax is imposed on the gross proceeds derived from the rental of transient accommodations. Taxpayers must be aware of these additional taxes and their required payments in order to stay in compliance with the law.

Airport Tax

In addition to income tax, there are other taxes levied in Osceola County, including airport tax. Airport tax is collected by the Osceola County Tax Collector’s Office and is used to fund the operations of the local airport. The tax rate varies depending on the plane’s size, weight, and type of fuel used.

For example, an aircraft weighing more than 6,000 pounds and using jet fuel is subject to a rate of 7.5%. Any aircraft that weighs less than 6,000 pounds and uses jet fuel is subject to a rate of 1.5%. It’s important to note that the airport tax rate is subject to change and is based on the year the aircraft is purchased.

Communications Services Tax

In addition to income tax, other taxes must be taken into account when filing taxes. One of these is Communications Services Tax, which is applicable to telephone, television, and cable services. This tax is charged by the state and is based on the gross charges for these services. It is usually calculated as a percentage of the customer’s bill. The rate varies from county to county, with some counties offering lower rates.

The taxpayer should check with their provider to determine the exact rate they will be charged. The rate for the Communications Services Tax is typically added to the bill and paid automatically, although in some cases the customer can choose to pay it separately. It is important to note that this tax is not deductible on federal or state income tax returns.

Convention Development Tax

In addition to the income tax, other taxes that citizens in Florida have to pay include Airport Tax, Communications Services Tax, and Convention Development Tax. Let us take a look at the Convention Development Tax.

For those planning a large event in Osceola County, the Convention Development Tax can impose an additional burden. The tax is a levy of 1.5 percent of the total gross receipts from the sale of rooms and other facilities within the county. This includes mobile homes and rental units used for lodging. All proceeds collected must be used to cover the cost of constructing, improving, or operating facilities used for conventions and meetings.

Those who need to pay the Convention Development Tax must obtain a certificate of registration from the Osceola County Tax Collector’s Office.

Conclusion

The residents of Kissimmeeand Orlando have multiple taxes to consider. It is important to understand all of the various types of taxes and how they may affect you. Sales Tax, Use Tax, Real Estate Tax, Tourism Development Tax, Business Tax, Income Tax, and other taxes must all be taken into account when filing your taxes.

It is best to seek the advice of a professional tax accountant to ensure that all of your taxes are filed correctly and to ensure you don’t end up with any unwelcome surprises. Being knowledgeable and prepared when it comes to taxes can save you time, money, and stress in the long run.

If you require any more information regarding types of taxes, tax preparation and procedures involved with the latest updates, please feel free to contact us at 407-502-2400 for more information.

Freedomtax Accounting is a full-service business accounting and tax firm that offers corporate and personal tax services for Kissimmee, Hunter’s Creek, Buenaventura Lakes, St. Cloud, Orlando, Orange County, Osceola County, and surrounding areas in Central Florida. We specialize in bookkeeping, payroll, corporate taxes, incorporation services, personal tax returns, tax planning, and federal tax debt relief. Schedule your consultation with one of our accountants or IRS enrolled agents to solve any tax problems you may have, or if you wish to incorporate your new business.

You can contact us by phone, email, or by visiting our offices:

• Address:  1016 E Osceola Parkway, Kissimmee, 34744, Florida, United States
• Phone:  407-502-2400
• E-mail:  [email protected]

Remember that we are part of Freedom Group, a conglomerate of companies dedicated to providing quality services in accounting, taxes, financial consulting, insurance, real estate, business incorporation, among others.

• Freedom Immigration
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As for your finances, we can help you with everything you need.