House tax amendment calls for big changes to TDT funding

In tourist-rich Florida, local government officials and legislators scrambled Monday to understand the implications of a proposed House tax amendment that would override tourism development tax statutes by allowing counties to tap into that money for general uses while property taxes are cut.

Under a newly published amendment to a tax package (HB 7033), counties would no longer be required to spend at least 40% of their tourist development taxes (TDT) on commercials and tourism advertisements. Tourist development councils would get dissolved by the end of 2025.

Rep. Lawrence McClure, the House budget committee chair, clarified VISIT FLORIDA would not be eliminated with the county-level tourism councils.

Counties could use the TDT to complete any projects or contracts already under way as of July 1, the amendment said.

“Any such contracts may not be renewed or extended,” it also said. “Bonds or other debt outstanding as of July 1, 2025, may be refinanced, but the duration of such debt may not be extended and the outstanding principal may not be increased, except to account for costs of issuance.”

The House Budget Committee is scheduled to debate the issue at its upcoming 3:30 p.m. Tuesday meeting.

Some counties generate far more TDT revenue than others, so the proposal could have wide-ranging consequences.

In Orange County — home of Disney World — the 6% surcharge on all short-term rentals and hotels generated $364 million in 2024. Much of that money goes to Visit Orlando, which advertises the region, and to paying for the Orange County Convention Center.

“I am in favor of flexibility, but historically oppose preemption. I need to see the math on this in more detail before I can make a final decision,” said Rep. Anna Eskamani, an Orlando Democrat who had been one of the voices calling for TDT money to be spent on community needs, such as public transportation and affordable housing.

Orange County government affairs also is analyzing the House proposal, spokeswoman Jane Watrel said.

Eric Gray, who served on the the county’s TDT citizen advisory task force and is running for Orange County Commission, called the tax proposal “insane” and “truly one of the most ridiculous pieces of legislation I’ve ever read.”

He said he feared counties would be forced to lower property taxes by the amount of TDT they collect, nullifying the impact of the TDT “flexibility” in the first place, he said, pointing out in a tourism economy like Orlando, millions of visitors drive on the roads, use the water and solid waste system and require a beefed-up police presence.

Meanwhile, on the Senate side, Sen. Carlos Guillermo Smith’s proposal to allow TDT to be be spent on public transportation and other needs was added into a larger tax package (SB 7034).

Florida Politics reached out to Visit Orlando for comment Monday and did not get a response.