Short-term rental rules in Panama City, FL

What Panama City asks of you

• All businesses inside Panama City limits, short-term rentals included, must register with the city.^[6]

• Short-term rental and hotel stays fall under the merchant local business tax receipt, the type issued for retail sales.^[6]

• A business regulated by a state agency, such as the DBPR, provides proof of that registration with its application.^[6]

• Each application is reviewed by five departments, including Planning & Zoning, the Fire Department and Code Enforcement. Comments usually take 7 to 10 business days.^[6]

• Receipts are renewed through the city's GovOS portal by September 30 to avoid late penalties.^[6]

• The land development code calls short-term rentals transient commercial lodging uses: occupancy of residential property for less than 30 consecutive days.^[8]

• Merchant receipt holders collect a 1% merchant fee on gross sales, short-term rentals included, and remit it to the city every month.^[7]

• A late merchant fee carries an 8% penalty that rises to 24%, at which point the business tax receipt may be revoked.^[7]

What Florida asks wherever you host

These rules apply at this address whatever the city decides.

• Florida licenses vacation rentals itself. A dwelling license covers houses, townhouses and buildings of up to four units. A condominium or cooperative unit takes a condominium license instead. The license costs $150 plus $10 per rental unit, plus a $10 hospitality education fee.^[2]

• No Florida city may ban vacation rentals. It may not set how long or how often you rent either. The one exception is a local ordinance already in force on June 1, 2011, which still applies.^[1]

• State sales tax is due on every rental of six months or less. A bona fide written lease for more than six months of continuous residence is exempt. So is the seventh month onward once a guest has stayed and paid for six.^[3]