Guest AuthorTourists visit Florida for its sunny beaches, shining amusement parks and natural landscapes. In fact, the Sunshine State welcomes nearly 100 million of them each year.
They come to stay, play, and pay…taxes.
Nearly 74 percent of Florida’s general revenue comes from sales and use taxes, and a large part of that $19.4 billion is paid by tourists.
When more people visit Florida, it directly results in more jobs for Floridians and a reduced tax burden for the state’s taxpayers. As visitors spend their money here, state and local governments are able to collect more revenue, which enables them to pass on the revenue gains to taxpayers in the form of tax cuts, including the nearly $500 million tax cut passed by the 2014 Legislature.
When you consider the property taxes and other taxes paid by hotels, amusement parks, and restaurants that are paid by tourists in Florida, these tax receipts allow Florida to maintain lower tax rates for its citizens, which helps attract new residents and new businesses.
The Legislature and Gov. Rick Scott have worked together to significantly increase the state’s investment in tourism marketing and Florida is already seeing the results. Florida has set tourism records for two years running, welcoming more than 94 million visitors last year, an increase of 2.8 million people.
Florida is on track for another record year for tourism, with an estimated 26.7 million visitors coming in the first quarter of 2014. Visit Florida, the state’s tourism marketing arm, indicates that this is the state’s top quarter ever for tourism. That record was followed by a record second-quarter when 24 million people visited.
Since tourists are crucial to relieving the tax burden and increasing the quality of life for Florida residents, Visit Florida is using its increased appropriation to help Florida get more bang for its buck. Research shows that international tourists tend to stay longer and spend more. Higher visitor spending translates to lower tax burdens for taxpayers.
With more opportunities to attract visitors to Florida, Visit Florida is targeting these higher-spending international travelers, who leave more tax revenue per person than the average Florida tourist. Florida TaxWatch’s 2014 report “Unpacking the Benefits of Florida Tourism,” shows that since Visit Florida has increased its international tourism marketing efforts last year, international tourism has grown by more than 6 percent.
Without the billions of dollars of revenue visitors provide to our state, Florida’s taxpayers would have a higher tax burden. With more investment to attract these visitors, we’re actually saving money for Florida residents. So welcome, Florida visitors. We’re glad you’re here to play (and pay).
Dr. Jerry D. Parrish is Chief Economist and Director of the TaxWatch Center for Competitive Florida. He lives in Tallahassee. Column courtesy of Context Florida.
