ORLANDO, Fla. – A proposed House tax amendment could allow counties to use tourism development tax funds for general purposes.
On Tuesday, the House Budget Committee debated significant changes to the tourism development tax (TDT) funding. A proposed amendment to the House tax package (HB 7033) would override existing statutes, enabling counties to access TDT funds for general use rather than strictly for tourism-related projects.
Lawmakers are using the proposal to offset proposed cuts to local property taxes.
Some residents argue that the TDT, which in Orange County is generated by a 6% tax on hotel stays and short-term rentals, should be allocated to improve local infrastructure and transportation.
Watch the video below to hear how the plan could affect county government spending.
Last year, the TDT generated $360 million in Orange County alone, but current regulations restrict its use to initiatives that promote tourism, such as advertising campaigns by Visit Orlando and funding for the Orange County Convention Center.
Mark Anthony, who works in the tourist area, expressed frustration with the current allocation of funds.
“I think they should put it more towards the residents and infrastructure. You know, to help us because we get aggravated. You know, that’s why people were out to the outskirts, but on the outskirts now that’s becoming jammed up,” he told News 6.
Construction is underway for the I-4 ramp near exit 68, which will eventually improve access to the tourist area. The busy roads leading to Disney Springs highlight the influx of tourists who contribute significantly to the local economy, raising questions about how TDT funds are spent.
[RELATED: What Orange County’s tourist tax money is used for and why]
Scott Boyd, former Orange County Commissioner for District 1, said having TDT funding for tourism initiatives is important.
“Changes in Tallahassee take place. You know, this discussion has been going on for 20 years. That was going on when I was there,” he told News 6.
In addition to shifting tourism dollars for general use, the bill also would dissolve county tourism development councils. Meanwhile, tourism agencies like Visit Orlando would only remain in place if the county government approves the agency.
Boyd, whose family has a long history in Central Florida’s agriculture and construction, warned that relying on TDT for general use could jeopardize projects, as well. He was in office during a recession, and remembers when there were fewer tourism dollars.
“What happens when the market goes south again, for whatever reason? The tourism industry is hugely important and a huge part of our economy. Driving that tourism here has a ripple effect across our entire area,” he added.
Boyd expressed concerns about the sustainability of using TDT funds for general purposes, questioning whether those funds would be available when needed.
The Florida Senate’s tax package also would make changes to the way tourism tax dollars are used.
The proposal by Orlando Democratic Sen. Carlos Guillermo Smith would restrict the amount of TDT money counties use on tourism promotion to $50 million a year, allowing the rest of the money to be used for other purposes.
Smith sees the TDT as a way to provide public transportation improvements, something Orange County has struggled to do.
“Because if we are going to fully realize our tourism potential in Central Florida, we have to be able to find funding sources to connect SunRail to the airport, to promote mass transit and have the infrastructure we need to support the full expansion of tourism in Central Florida, and that’s why we’ve put this legislative package forward,” Guillermo-Smith said.
The Florida House and Senate would have to iron out any differences between the two tax plans in order to get one passed for Gov. Ron DeSantis’ signature.
