[RPPTL LandTen] Condo Tenant Rents for Association Fees

Mon Mar 29 08:50:38 PDT 2010

I'd be extremely careful and ask for clarification in writing from the
Department of Revenue.  I'm not sure about condo boards but what I tell
real estate licensees is that they are not required to collect sales tax
(we're talking the taxable variety of leases here) if their only role is
to procure a tenant and they handle none of the money involved.  If the
tenant pays all funds directly to the landlord, and the real estate
licensee is not involved in any way as a conduit of funds between the
parties, then it is the landlord's responsibility to collect and remit
the sales tax.  I think we have a letter from DOR to FAR to that effect
from many years ago.  In your situation the DOR might claim that the
Board is a conduit of the funds thus triggering the ability of the DOR
to go after them for the tax (in addition to the parties to the lease).

Regards,

Greg

Greg Hass, Senior Counsel

Office of Law & Policy | FloridaRealtors(r)
7025 Augusta National Drive, Orlando, FL 32822
talk: 407.438.1400, ext. 2421
visit: http://www.floridarealtors.org

Florida Open House Weekend: April 10-11
Be Proud of it. Be Part of it.
http://floridarealtors.org/openhouse

LEGAL DISCLAIMER:  The information transmitted is intended solely for
the individual or entity to which it is addressed and may contain
confidential and/or privileged material. Any review, retransmission,
dissemination or other use of or taking action in reliance upon this
information by persons or entities other than the intended recipient is
prohibited. If you have received this email in error please contact the
sender and delete the material from any computer.

From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of David
Weisman
Sent: Friday, March 26, 2010 6:11 PM
To: lesstevens at earthlink.net; RPPTL LandlordTenant Committee
Subject: Re: [RPPTL LandTen] Condo Tenant Rents for Association Fees

I would say the Owner is still liable on the theory that the Owner
constructively received the rents and that is a taxable privilege. The
Association was just enforcing a security interest upon the cash and
that does not have any effect  upon the fact that rent was paid to or
for the benefit of the Owner for rental property.

David  Weisman

Board Certified Real Estate Lawyer

Greenspoon Marder, P.A.

Trade Center South, Suite 700

100 West Cypress Creek Road

Ft. Lauderdale, FL 33309

Phone 954-491-1120

Toll Free 888-491-1120

Direct Phone 954-343-6941

Direct Fax 954-343-6942

From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of lesstevens
Sent: Friday, March 26, 2010 10:44 AM
To: landten at lists.flabarrpptl.org
Subject: [RPPTL LandTen] Condo Tenant Rents for Association Fees

Hopefully, some of you have some input as to a question that has arisen
in the following situation:

Commercial Condominium has Unit Owners and any of their Tenants sign an
Addendum which provides that if there are any Association Fees,
Assessments, etc. past due from the Unit Owner, the Association may
collect the rents from the Tenant until the monies have been paid.

The question is: if the Association collects the rents, does the
Association now become liable for remittance of sales tax or because it
is a contingent assignment of rents is the Unit Owner still liable even
though they did not receive the rent.

Thank you for any assistance to the Committee Members.

Les H. Stevens, Esquire

Les H. Stevens, P.A.

5301 North Federal Highway

Suite 130

Boca Raton, Florida 33487

Tel. - (561) 989-9797

Fax - (561) 989-8484

E-Mail - lesstevens at earthlink.net

________________________________________________________________________
______________________________________

THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO
WHOM IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED,
CONFIDENTIAL AND/OR OTHERWISE EXEMPT FROM DISCLOSURE. IF YOU HAVE
RECEIVED THIS TRANSMITTAL IN ERROR, PLEASE DELETE IT AND NOTIFY THIS
OFFICE IMMEDIATELY

The information contained in this transmission may be attorney/client
privileged and confidential. It is intended only for the use of the
individual or entity named above. If the reader of this message is not
the intended recipient, you are hereby notified that any dissemination,
distribution or copying of this communication is strictly prohibited. If
you have
received this communication in error, please notify us immediately by
reply e-mail.

Pursuant to Internal Revenue Service guidance, be advised that any
federal tax advice contained in this written or electronic
communication, including any attachments or enclosures, is not intended
or written to be used and it
cannot be used by any person or entity for the purpose of (i) avoiding
any tax penalties that may be imposed by the Internal Revenue Service or
any other U.S. Federal taxing authority or agency or (ii) promoting,
marketing or recommending to another party any transaction or matter
addressed herein.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://mailman.fsr.com/mailman/private/landten/attachments/20100329/b27e066d/attachment-0001.html 
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: image/jpeg
Size: 3508 bytes
Desc: image002.jpg
Url : http://mailman.fsr.com/mailman/private/landten/attachments/20100329/b27e066d/attachment-0001.jpe 
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: image/png
Size: 9986 bytes
Desc: image003.png
Url : http://mailman.fsr.com/mailman/private/landten/attachments/20100329/b27e066d/attachment-0001.png 