Walton County aggressively targeting THESE tax dodgers in 2026

Registration for Short-Term Vacation Rental (STVR) properties has been a significant effort for Walton County Tourism & Livability Coordinator Joshua Allen.  Over the past three years, Allen and a growing team have worked to bring vacation rental properties into compliance with county registration requirements.  Being in compliance requires that “ALL Walton County properties with rental stays of 6 months or less are subject to TDT (Tourist Development Tax).”  The Tourist Development Tax Office (touristdevelopmenttax@waltonclerkfl.org) defines this tax as “a pass-through, trust-type tax that is charged to & paid by the renters & passes through the owner/manager on the way to the proper taxing authority.  Once [the taxes are] collected from the renters, the TDT funds collected are considered county property held in trust by the collecting owner/manager until properly remitted to our department.”  A seminar held this month at the South Walton Annex brought together many property owners and managers seeking the latest guidelines from the Tourism Development Tax Office and the Tourism Development and Fire Marshal, Sammy Sanchez.

The report given by Joshua Allen expressed that compliance is much improved over prior years.  With the implementation of Compliance Hearings for non-compliant property owners and the fines (up to $500 per day) imposed by the magistrate, motivation to comply with the registration and submission of state and county taxes is improving with every scheduled magistrate hearing.  At present, 50 properties are brought before the magistrate each month to bring them into compliance.

Jim Boone, a resident of Inlet Beach, voiced concern on behalf of himself and some of his neighbors that only 31 homes are compliant or registered (from his subdivision) within the county.  He expressed concern with the 26 properties that have refused to comply with the taxing authorities.  Boone said, “How do we get them on-board?”  There appears to be concern that, although Allen reports that the county has 90 percent compliance, many owners/managers are delinquent in submitting the significant “bed tax”.  This means that almost half of the properties in one subdivision are non-compliant (not registered with the County or the State of Florida).

Allen provided a detailed status on the Walton County STVR Team, which serves as the point of contact for bringing property owners into compliance.  He began by saying that the STVR Team is financially solvent, and that the outlook for 2026 is continued progress, with increased staffing and the ultimate goal of increased compliance in Walton County.  He anticipated that registration would move from 90% to 95%.  And with an estimated 1000 non-registered properties still remaining, he believes an increase of 50 (a total of 100) additional homes will be summoned to the magistrate for legal action that necessitates compliance.  Failure to comply with the law (Code Compliance) results in a maximum fine of $500 for each day an owner is non-compliant following the scheduled magistrate hearing.

The 5-step process used by the county includes:

1. Sending and posting notices for registration and steps for compliance for STVR properties.
2. Contact is made with the owner to ensure that they are given the opportunity to take action and register with the State of Florida and with Walton County.  (Both registration processes are separate and required.) It was noted that registration with the State of Florida typically takes more time than registration with Walton County.
3. A scheduled Magistrate Hearing is only required if registration and compliance have not been achieved.
4. Fines and Liens are assessed (on property).
5. Compliance is achieved.

Fire Safety Inspections – Random Inspections – Compliance Mandatory for STVRs

One surprising area that many STVR homeowners may not consider is the required “fire safety requirements” for each rental unit.  By random selection, the South Walton Fire District (str-inspections@swfd.org) contacts STVR owners to perform fire safety inspections.  Each inspection is taken seriously and must be scheduled promptly.  Failure to schedule and follow through with an inspection is “considered a strike” according to Fire Marshall Sammy Sanchez.  If a property (during inspection) does not meet essential requirements, it will receive a report detailing property deficiencies and necessary actions.  The property will have a limited number of days to make the correction(s) and have a follow-up inspection.  For a comprehensive list of fire safety inspection requirements, owners may visit https://www.swfd.org/.  To schedule an inspection, property owners may visit https://bit.ly/BookSWFD.