At the end of 2016, the WORD Board voted to make several changes to the Policies & Procedures for Permit Holders, effective April 1, 2017. Most of the changes apply to lodging specific businesses, with only one general change that applies to all business types..
All tax returns received past the due date (20th of the month following the quarter end) are subject to an automatic flat $25 late fee. This is in addition to the 5% or 10% in penalties that may apply depending on how late the return is submitted. This change was implemented due to the fact that multiple businesses reporting zero revenues for a quarter currently submit those returns late with no penalty.
Lodging requirements: Lodging businesses (Including vacation rentals, timeshares, etc.) have additional rules specific to that business type, as follows:
- All lodging rentals must include their WORD Permit Number (Example L1234) on all online advertisements under the “Contact” or “Taxes” sections. If neither of these sections exists, the number shall be displayed in a prominent location on the advertisement.
- All businesses reporting more than two lodging outlets (Separate properties) must attach Form 004 to the tax return detailing taxable revenues and tax amounts due for each individual property or outlet. It is acceptable to submit a report from the business accounting software as a substitute, provided it contains all of the information listed on the WORD form. Businesses that have itemized outlets set up in the online payment system do not need to submit a separate form when using that system but do need to comply when submitting paper returns.
- All companies which advertise online on a property owner’s behalf and collect money as a result of a property rental are required to first obtain a WORD permit and remit taxes on behalf of the property owner.
- All businesses operating multiple outlets (Example: property management companies) are required to fill out Form 005 and submit it to WORD whenever a property is added or removed from their management or ownership. If using the online payment system, businesses may simply enter multiple outlets and the form is not required. The online payment system will have the ability to add/remove properties electronically.