Janelle Irwin Taylor
It’s not entirely clear yet just how tourism marketing efforts across the state would be directly impacted by a sweeping new tax amendment.
That measure would dissolve tourist development councils (TDC) in Florida by Dec. 1 and allow counties to use the portion of tourist development taxes (TDT) currently earmarked for tourism marketing for general uses, a move intended to offset potential revenue losses to counties if a proposed property tax cut goes through.
Currently, counties are required to spend at least 40% of their TDT dollars on commercials and tourism advertisements.
If enacted, the move would impact counties all across the state, whether they are tourism-heavy locations or not.
All but five counties have a TDC and all receive tourism taxes to at least some degree. But some counties would be hit harder than others, such as popular tourist destinations like Orlando, where Disney and a slew of other amusement parks bring in countless direct and indirect benefits; South Florida with its cultural lure; and Pinellas County, where its award-winning beaches and quaint downtowns — like Dunedin, Gulfport and St. Pete — are huge tourism draws.
In Pinellas, nearly $100 million has been collected per year from TDTs since at least 2022, according to county budget documents. The county collected $95 million in Fiscal Years 2022 and 2024 and $98 million in 2023, with another $98 million projected for 2025.
In Fiscal Year 2024, the agency allocated more than $275 million for expenses, including nearly $222 million put into reserves, with close to $65 million covering operating expenses, which are used for marketing the destination. About $6 million was spent on staff.
In Fiscal Year 2024, Visit St. Pete Clearwater used funding to launch its “From Visitors with Love” campaign educating local residents on the value of tourism. More than 167 film permits were issued, resulting in 1,802 local jobs, more than 3,000 room nights booked and a nearly $7 million direct spend.
Additionally, more than 416 meetings and sporting events were booked in the county, generating nearly 300,000 room nights and $260 million in direct spending. Marketing efforts, according to Visit St. Pete Clearwater, produced 900 media mentions that generated more than 1 billion impressions.
Its current Fiscal Year 2025 budget includes spending for advertising and promotions in targeted markets in the U.S., as well as in select international markets in Europe, South America and Canada. Its marketing plan also includes efforts to attract high-profile events to Pinellas County.
All revenue is supported by the TDT, which is a 6% tax collected on temporary lodging, known colloquially as the bed tax.
The potential cut to funding comes after state lawmakers for years have considered efforts to abolish or defund VISIT FLORIDA, the state’s public-private tourism marketing arm. Now, effects would trickle down more aggressively to the local level.
And the implications could be broader than just TDCs and other tourism marketing agencies, like Visit St. Pete Clearwater. Tampa Bay Beaches Chamber of Commerce CEO Charlie Justice, a former Pinellas County Commissioner, told Florida Politics that most chambers receive some direct support for things like welcome centers or event sponsorships, so there could be direct impacts. But impacts could also be felt indirectly.
“The CVB (Convention and Visitors Bureau) is a critical partner for the Chamber and the businesses that rely on tourism,” Justice said, adding that TDT dollars are “an invaluable resource for the 100,000+ families that rely on tourism for employment in Pinellas.”
The conversation is happening as a backdrop to a broader budget debate. At issue is Gov. Ron DeSantis’ priority to cut, and eventually eliminate, property taxes on homesteaded properties.
The House, even though Speaker Daniel Perez and other members of legislative leadership have been publicly feuding with DeSantis, has proposed as part of its budget amendment would force counties to expand tax exemptions they’ve otherwise been reluctant to provide. Language in the amendment would block county and city governments from opting out of certain tax exemptions, such as those under the 2023 Live Local Act.
By providing flexibility in how TDT dollars can be allocated locally, lawmakers say local governments could use that money to offset losses to property tax revenue.
But Destinations Florida Executive Director Robert Skrob said the amendment is not a cost-saving tool, rather “an act of economic sabotage.”
“This proposal gambles with the livelihoods of more than 2 million Floridians, from hotel workers to small-business owners, and risks collapsing the tax base that makes Florida’s income tax-free status possible,” he said in a statement.
Destinations Florida, the state’s association serving local tourism promotion organizations, laid out math that calls the House’s calculus into question, pointing to the use of TDTs to bring in visitors and their spending to Florida.
Tourists pay sales tax, gas tax and bed taxes on hotel and motel stays, money that supports schools, infrastructure, public safety and more. The group pointed out that TDTs statewide account for just $1.8 billion, while nearly $16 billion in property taxes are levied. The group said the current proposal offers minimal offset, but risks devastating fiscal losses.
The House Budget Committee is taking up the taxation package (SB 7033) at 3:30 p.m. Tuesday.
