Gabrielle Russon
An Orlando Democrat’s proposal to free up Orange County’s hotel tax money for public transportation and other needs has been inserted into a larger Senate tax bill moving through the Legislature.
SPB 7034, which includes part of Sen. Carlos Guillermo Smith’s plan, is scheduled to be taken up Tuesday by the Senate Finance and Tax Committee.
Current law says at least 40% of hotel money must be spent on tourism ads before money can be spent elsewhere. Smith’s provision would allow counties to begin spending on other items, including transportation, once they hit $50 million annual spending on advertisements.
Smith called it “a huge win” for his provision to get added into the Senate tax bill.
“The inclusion of our TDT reforms in the Florida Senate tax package are a critical first step towards transformational change in how local government can use hotel taxes to fund community needs,” Smith said in a statement Monday. “If passed, these proposals would immediately empower Orange County to use tourist development taxes to help fund a Sunrail connection to the Orlando airport, expand LYNX bus service countywide, and reduce wasteful government spending on corporate advertising via Visit Orlando.”
The larger tax bill also would permanently eliminate sales tax on most shoes and clothes, establish several sales tax holidays for a variety of purchases, and more.
Disney World, Universal and SeaWorld bring millions of people into Orange County every year who pay a 6% surcharge on all short-term rentals and hotel stays. The tourist development tax (TDT) generated $364 million in 2024, but the government is limited on how to spend the funds.
This Session, Smith filed SB 1114 along with several other bills to give Orange County more flexibility on how to spend TDT money. SB 1114 had not been called to a committee vote yet with the Session more than half over.
Smith had previously voiced concerns about Visit Orlando’s $100 million to advertise Central Florida while the SunRail train doesn’t have funding to run on weekends, nights or to the airport.
“These reforms give Central Florida the opportunity to reach our full tourism potential by investing in desperately-needed destination infrastructure for tourists, tourism workers, and local residents alike,” Smith said. “I am grateful to Senator Bryan Avila and President Albritton for their consideration of these common sense proposals that will have a tremendously positive impact on Senate District 17.”
