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New tax collector says Sarasota received nearly $19M in FY25 excess; urges audit, registration for short‑term rentals
Summary
Tax Collector Mike Moran told the county commission his office returned about $18.9 million in FY25 excess distributions and proposed stronger enforcement and a registration system for short‑term rentals and tourist development tax collection; he also disclosed Guidehouse and forensic reviews and said some legacy practices need correction.
Tax Collector Mike Moran told the Sarasota County Board at its Feb. 26 budget workshop that the tax collector’s office returned nearly $18.9 million in excess distributions to the county in FY25 — materially higher than the 20‑year average staff slide the board used in prior modeling.
Moran urged clearer presentation of excess numbers in county budget models and called for tighter collection and enforcement measures for short‑term rentals and tourist‑development tax (TDT) collections. He described the current system as largely self‑reporting (platforms such as Airbnb and VRBO supply spreadsheets and payments) and recommended the county consider registration and audit authority to improve compliance and data transparency.
Why it matters: The 'excess' number feeds the county’s projected general‑fund resources and can materially affect how much the board decides to set aside, invest, or use to reduce property tax needs.
What Moran said
- Excess distributions: Moran said a 20‑year average plotted in staff materials showed roughly $11.5 million but that the recent actual FY25 excess returned to the board was nearly $19 million. He asked the board to use the tax collector’s annual projected excess for modeling rather than long‑term averages when practical.
- Operational modernization and one‑time needs: Moran said his office commissioned a third‑party operational assessment (Guidehouse) and uncovered technology and infrastructure shortfalls — a new main server, queueing and scanning equipment, and other one‑time expenditures that amount to about $3.5 million to modernize operations. He said a new server was installed the previous weekend and the office plans a phased go‑live of new software with a full live date later in the year.
- Enforcement and registrations: Moran proposed that the county consider motions to direct staff and county attorneys to support legal enforcement actions related to homestead exemptions and TDT collection — including exploring registration requirements and audits for short‑term rental platforms. He noted the collection mechanism is currently self‑reporting and that registration would allow better cross‑agency audit and enforcement.
Board reaction and next steps
Commissioners expressed interest in the registration approach and asked for coordination with the clerk and auditor to ensure any enforcement program is auditable. The chair and administration asked the tax collector to provide official projected excess numbers that staff can incorporate into the broader budget model and to continue working with county legal staff and the tourist development council on potential registration language.
Moran also disclosed that third‑party forensic accounting and state audits had identified issues in prior practices; he said some matters had been referred to law‑enforcement investigators and that his office will continue to cooperate with outside auditors and the Department of Revenue as needed.
The board did not take a final vote on policy changes; commissioners asked staff for follow‑up materials ahead of the March budget workshop.
