April 25, 2025—On Friday, the Florida Home of Representatives handed a pair of payments that would change how tourism taxes are used within the state. HB 1221 (Native Possibility Taxes) has been edited because it was launched in February, however in response to a invoice evaluation filed April 22, the impact of the measure which handed by a margin of 62 to 45, can be to “change vacationer improvement taxes (TDTs) from restricted use income to common income, which have to be used to offset county property taxes” starting in 2026.
It might dissolve vacationer improvement councils and promotional companies except authorised by a decision of the board of county commissioners. The invoice made allowances for fulfilling contracts in place as of Jan. 1, together with servicing bonds however stated they can’t be renewed or prolonged. That might influence investments in occasion and hospitality infrastructure and assets.
The invoice made allowances for 1% larger taxes in “excessive tourism influence” counties if taxable gross sales exceed $6 million within the earlier calendar yr or had been not less than 18% of the county’s complete gross sales.
Companion invoice HB 7033 (Taxation) which handed 78 to 29, additionally modified TDTs from restricted use to common use and diminished state gross sales tax charges by .75%.
Locations Florida Govt Director Robert Skrob advised Florida Politics, “This proposal gambles with the livelihoods of greater than 2 million Floridians, from lodge employees to small enterprise house owners, and dangers collapsing the tax base that makes Florida’s earnings tax-free standing doable.”
The Florida Points of interest Affiliation stated in an announcement that the payments would lead to eliminating funding for tourism promotion, advertising and marketing and the event of tourism amenities. “These proposed measures would have a profound impact on the tourism trade in Florida, devastating how tourism is promoted and supported in your county,” it learn.
Don Welsh, president and CEO of Locations Worldwide, known as the transfer an financial cliff in a state that has no earnings tax partially due to the bounty of tourism {dollars}. He stated in an opinion piece in at present’s Tampa Bay Occasions, “It cuts the funds allotted to advertise and encourage tourism, which fuels the numerous financial influence of tourism throughout the state.”
Governor Ron DeSantis just lately introduced that Florida reached historic excessive file variety of vacationers in 2024 and “continues to be the highest vacation spot for vacationers from all around the world.” A complete of 142.9 million guests arrived in 2024, a 1.6% enhance over 2023, the earlier file annual visitation within the state’s historical past.
Reached by cellphone on Friday night, Welsh added, “That is poorly timed and, frankly, irresponsible.” He pointed to the decline of holiday makers to the US from outdoors the nation already taking place on account of nationwide politics and stated, “That is the time to take nothing with no consideration. We are going to see an instantaneous response if there’s a removing of funding of cash paid by guests in amenities and venues.”
The invoice was referred to appropriations and can go to the senate subsequent as a part of state finances discussions. The session ends Friday, Might 2.
