JACKSONVILLE BEACH, Fla. — A small business owner, who owns and manages vacation rentals in Jacksonville Beach, doesn't think the math is adding up correctly for his business tax receipts.
The City of Jacksonville Beach has given him an explanation, but he doesn't think it makes sense. He came to the Ask Anthony team for help.
"This used to be a motel in 1950s that was then converted to condos," Gary Randall explained.
Randall and his wife manage 10 condos in a complex off of North First Street.
Right now, Randall is paying about $79 for business tax receipts for each condo. That brings his yearly payment to a little over $790.
The reason he contacted the Ask Anthony team is because, he says, the hotels on the beach are only paying $79 for the entire year. He doesn't think that's right.
"So, they're just telling me you owe us. If you don't pay, we're going to have to submit you to code enforcement and there will be other penalties and charges," Randall said.
As a small business owner with a family of five to support, he says this expense is taking much needed money out of his pocket.
"Once you start adding the county taxes, the state tax, as well as all the license and fees that are required, this is just one more hit that hurts us as a small business," Randall said.
Anthony Austin contacted the City of Jacksonville Beach about this issue. He received a response that condo short-term vacation rentals are classified as individual businesses and must pay the local business tax receipt for each property. They are registered individually with the city. Hotels are classified as a different business and fall under their own category.
"I've asked them for all that information verifying what they're telling me is required, and where it is on their site, and they can't provide it," Randall added.
Anthony looked up Jacksonville Beach's code of ordinances. Chapter 15 mentions local business tax receipts. It gives definitions for apartments, hotels, rooming houses and sleeping rooms. He didn't see anything that mentioned vacation rental properties.
In a section of Chapter 15, it mentions hotels, rooming houses, camps and "other" with a fee of $79.20 for up to 36 units. $2.20 for each unit over 36.
Anthony asked for more information. The deputy city clerk for Jacksonville Beach sent an email with a section that mentions a business that operates at more than one location shall be considered a separate business and a local tax business tax receipt is necessary for each location.
Randall's condos are on the same property and he doesn't consider them individual businesses.
"We're just asking them to be fair. We have 10 units. We have the same address. Charge us the same as what you charge a hotel," Randall said.