Gabrielle Russon
Despite critics from several counties speaking out, the House Budget Committee advanced its tax package to dissolve tourist development councils (TDC) and lower property taxes while allowing counties to tap into hotel tax money for general uses.
In the Sunshine State, where millions visit the theme parks and beaches, counties levy a hotel tax known as the tourist development tax (TDT). Currently, at least 40% of TDT revenues must be spent on tourism ads — something the House tax bill calls to eliminate.
“I stand before you opposing any impact on the tourist development tax. This is not a tax cut, but a job killer,” said Paul Beirnes, the Vice President of the Amelia Island Convention & Visitors Bureau. “Tourism on Amelia Island itself accounts for 36% of the jobs in Nassau County. Without marketing that we do so well, Florida will lose visitors. Florida will certainly lose jobs, and Florida will lose tax revenue as a result.”
Beirnes said the county also spends $1 million annually in TDT on beach renourishments to draw tourists.
Under the House tax package (HB 7033), starting in 2026, a credit against county ad valorem taxes would get applied to property tax bills equal to the previous year’s TDT revenue, minus any revenue required for debt service for projects funded by the TDT or remaining contracts.
“Our counties are not asking for indiscriminate flexibility as it relates to how we can spend TDTs. Nor are we wanting to shut down all the TDCs,” said Jeff Scala, deputy director of the Florida Association of Counties.
“We’re not sure what, how the impact of the mechanism to account for the property tax offsets will work. I think there’s a lot of questions about how to allocate those credits and make sure that it is a fair process.”
Republican Rep. Wyman Duggan, who introduced the bill in the budget committee, told critics that the proposal “is the beginning of a process. … The cake is not baked, so there’s a long way to go.”
“Ultimately, this approach with the tourist development taxes is something that we can do right now. We can do it potentially on an interim basis,” Duggan said. “Doesn’t have to be permanent necessarily. Could be the start of a way to do some interim relief.”
The proposed TDT changes come as the state is considering putting a permanent property tax cut on the ballot.
In Central Florida, home of Disney World, officials also are concerned about the potential changes to TDT funding.
“We are closely monitoring legislative proposals related to the TDT and how they might impact already approved projects, including the KIA Center and Camping World Stadium. These are projects that went through an extensive public process and were ultimately approved by both the City Council and the County Commission,” said city of Orlando spokeswoman Ashley Papagni.
“These projects are vital to maintaining Orlando’s position as a premier destination for entertainment and tourism, and they deliver substantial economic benefits to local businesses. We remain hopeful that the final legislation will preserve the tools local governments rely on to support these important investments.”
Rep. Anna Eskamani, an Orlando Democrat, has been a proponent for Orange County having more flexibility to pay for public transportation or affordable housing with the TDT revenue. However, she said the House proposal wouldn’t mean extra money for Orlando’s needs since TDT revenues would go toward bond payments or property tax reduction.
“It is not the TDT reform I am looking for — I want local flexibility and control,” Eskamani said. “Hopefully, through legislative negotiations, we’ll be able to strike a balance.”
House Budget Committee Chair Lawrence McClure told lawmakers the Senate and House are moving forward in budget talks.
“Just stay tuned,” he said at the start of the meeting. “We feel like we’re going to get to a place here pretty quickly, we will be in conference.”
