Miami-Dade to FlipKey and HomeAway: Where’s the tax money?

County sues online short-term rental firms and their parent companies for not collecting resort taxes

Miami /
Nov.November 27, 2018 04:30 PM

(Credit: iStock)

Miami-Dade County is knocking hard on the doors of FlipKey and HomeAway in an attempt to collect untold millions of dollars in unpaid resort taxes.

In two separate lawsuits filed in Miami-Dade Circuit Court at the end of October, Miami-Dade accuses FlipKey and HomeAway of not forcing property owners who list on the short-term rental platforms to pay their share of bed taxes. The complaints also name FlipKey’s parent company TripAdvisor and HomeAway’s parent company Expedia as defendants.

A Miami-Dade spokesman said the county does not comment on pending lawsuits. Representatives for TripAdvisor and Expedia did not respond to emails requesting comment.

According to the complaints, FlipKey and HomeAway are in violation of a county ordinance that requires third-party providers to collect three separate bed taxes totaling 6 percent from individuals and companies that rent properties on a short-term basis. As a result, Miami-Dade has lost millions of dollars in tax revenue, the complaints allege, though the county does not state a specific dollar amount.

Miami-Dade alleges both companies refused to reveal the identities of property owners who use the platform, and have rejected an offer to enter into a collection agreement with the county. Meanwhile, TripAdvisor and Expedia recently entered into collection agreements with Broward County, the lawsuits state.

Miami-Dade enacted its bed tax collection for short-term rental platforms in April 2017  as part of several measures to reign in the short-term rental industry. The same year, Miami-Dade passed an ordinance capping occupancy limits for vacation and short-term rentals in unincorporated Miami-Dade to 180 days per year. Under the new law, hosts are also required to sign up for a certificate of use, register for a business tax receipt, screen for sexual offenders and enforce some rental standards on guests, such as following standard garbage procedures and noise restrictions.

Airbnb, the nation’s largest short-term rental provider, has collection agreements with Miami-Dade and Broward that remitted more than $12 million to both counties through June 2018.


Related Articles

arrow_forward_ios
Mayor Daniella Levine Cava along with a rendering of the planned megaproject outside Miami-Dade County’s Urban Development Boundary (Getty, State of Florida Division of Administrative Hearings)
UDB battle not over: Megaproject opponents take fight to state
UDB battle not over: Megaproject opponents take fight to state
A photo illustration of Magic City Casino principal Isadore Havenick and Magic City Casino at 450 Northwest 37th Avenue (Getty, Google Maps)
Native American tribe under contract to buy Magic City Casino
Native American tribe under contract to buy Magic City Casino
From left: The Trump Group's Jules Trump and Suffolk Construction's John Fish along with a rendering of the Estates at Acqualina (Photo Illustration by Steven Dilakian for The Real Deal with Getty, The Trump Group, and Weiss Serota Helfman Cole & Bierman, P.L.)
Trump Group sues Suffolk again over delays at Sunny Isles project
Trump Group sues Suffolk again over delays at Sunny Isles project
Z Capital's James Zenni Jr. with Carillon Miami Wellness Resort at 6801 Collins Avenue (LinkedIn, Google Maps)
Z Capital allegedly owes $2M legal bill: lawsuit
Z Capital allegedly owes $2M legal bill: lawsuit
Mitch Novick with rendering of Bulgari hotel (Mitch Novick, Bulgari Hotel and Resorts, Getty)
Lawsuit targets Miami Beach deal with Bulgari hotel developers
Lawsuit targets Miami Beach deal with Bulgari hotel developers
Two Roads Development’s Reid Boren and Taylor Collins with Frisbie Group’s Dave, Rick and Robert Frisbie Sr. and renderings of South Flaglar House (Two Roads Development, Frisbie Group, The Boundary with Noe & Associates, Getty)
Two Roads’ suit spells trouble for Frisbie’s West Palm condo project
Two Roads’ suit spells trouble for Frisbie’s West Palm condo project
GL Homes' Dick Norwalk and Miami-Dade County Mayor Daniella Levine Cava (GL Homes, Miami-Dade, Third District Court of Appeals)
Court ruling throws wrench in GL Homes’ Calusa project
Court ruling throws wrench in GL Homes’ Calusa project
Grant Cardone and Related's Stephen Ross (Getty; Illustration by Kevin Rebong for The Real Deal)
Grant Cardone sues Hard Rock Stadium, F1 over stolen $750K watch
Grant Cardone sues Hard Rock Stadium, F1 over stolen $750K watch
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...