ORANGE COUNTY, Fla. – How should the tax revenue generated from tourists be spent in Orange County?
That is a question that has been at the center of a debate for years, but it’s also a question that comes with a caveat.
According to Florida statute, revenue brought in from the Tourist Development Tax — commonly referred to as TDT — can only be spent in certain areas, such as tourism and entertainment. For years, state and local leaders have mused about altering the language in order to loosen the restrictions on the use of TDT revenue.
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“I fundamentally believe that the restricted current use of TDT is something that honestly needs to change,” State Senator Carlos Guillermo Smith said Wednesday.
Smith’s comments came during an event hosted by Orange County’s chapter of the League of Women Voters. Smith discussed his vision for the future of TDT while on a panel with Jane Healy, the former co-chair of Orange County’s TDT Citizen Advisory Task Force, and Frank Santos, the CEO of Rosen Hotels & Resorts.
Smith would like to see reform made to the statute that restricts the use of TDT dollars, allowing commissioners in Orange County to spend TDT dollars on transportation and affordable housing projects.
“I see hope based on the fact that we were able to get together and have this lively conversation: the hottest topic of all,” Smith said.
Smith said he has reintroduced a bill in Tallahassee that would require the tourism industry to match every public TDT dollar invested in destination marketing.
Santos said he does not think any changes should be made to TDT. Instead, he has proposed a tourist transportation tax (TTT) that would be dedicated to funding transportation needs.
“My plan is to add additional capacity where there is capacity and charge our visitors, not our residents, for paying for those services that we need,” Santos said.
Smith said he agreed with Santos’ TTT proposal, but he argued there is also room to loosen the restrictions on the use of TDT funds.
“To me, it’s unconscionable that we spend $105 million a year—not on community needs to support the homeless, on transit—but $105 million a year on corporate advertising at Visit Orlando with public monies,” Smith said.
[WATCH: Audit says Visit Orlando spent tourist tax dollars on skyboxes and other non-tourism items]
Visit Orlando has been under the microscope since an audit earlier this year claimed that the association spent some tourism development tax money on items that did not promote tourism.
“Right now, one of the biggest things we can do is we can look at Visit Orlando’s budget,” said Commissioner Kelly Martinez Semrad, who represents District 5 in Orange County.
Last fiscal year, Orange County generated more than $384 million in TDT revenue.
Semrad supports diversifying the recipients of TDT funds, and has also advocated for raising the current rate of TDT, which sits at 6%.
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News 6 reached out to Visit Orlando after Wednesday’s meeting and received the following:
“Visit Orlando’s Tourism Promotion Agreement prohibits us from lobbying on TDT, so we would not take a position on any TDT related proposal.
Visit Orlando is a leader in the travel and tourism industry with a strong reputation. We’re proud to be among the top-performing and award-winning destination marketing organizations in the country, including accreditation by Destinations International for nearly 20 years.
Our work directly supports our mission to market and sell the Orlando destination globally to benefit our economy and our community. According to research by Tourism Economics, each dollar invested in Visit Orlando generates a return of $33 in visitor spending."