A pair of bills aiming to provide Floridians property tax relief by diverting tourism dollars were approved by the House on April 25.
Both House Bills 1221 and 7033 were sent to the Senate, where negotiations between the chambers could see some changes to the proposal. Many within the tourism and lodging sectors are hoping the funds, which are currently used for promotion, capital facilities improvements for tourist-based facilities and festivals and events, remain safeguarded. But House bill sponsors believe Floridians need some relief from increasing property tax bills and wind insurance costs.
Both House bills address the use and distribution of various tax revenues in the Sunshine State, including tourist development taxes. Under the proposals, 75% of the tourist development tax revenues, which are paid by visitors booking overnight lodging, would go toward reducing a county’s ad valorem tax levy beginning in 2026. As for the remaining 25%, county commissioners would ultimately decide where to use that money.
“We have a local current affordability crisis. We want to provide as much as possible toward local government property tax relief,” said Rep. Wyman Dugggan, a Republican from Jacksonville who sponsored House Bill 7033. “Other structural property tax relief has to be done through the ballot in November 2026, which would not take effect until tax bill 2027. That’s a long way off. This is what we can do today.”
An amendment by Democratic Rep. Fentrice Driskell, of Tampa sought to give counties more flexibility to use TDTs for other public purposes beyond reducing the property tax levy. The amendment failed to garner enough support.
Not only do the bills alter the use of the tourist tax dollars, but they also seek to dissolve all county Tourist Development Councils beginning July 1. Both pieces of legislation also propose the dissolution of tourism promotion agencies unless they are approved by the county commission.
Both bills are facing opposition from Florida’s tourism and lodging industries. Kara Franker, Visit Florida Keys CEO, said the House bills have a dire impact on the local tourism economy. In 2023 and 2024, the county collected roughly $61 million annually in tourist development taxes. Those funds were used to support 140 events throughout the island chain last year, as well as improvements to tourism facilities from Key Largo to Key West. A portion of the tourism dollars support tourism marketing and promotion of the island chain to other states.
“TDT is not paid by Florida residents. It’s paid by visitors — and reinvested locally to support small businesses and create jobs,” Franker told Keys Weekly. “With over 2 million jobs and $124 billion in annual visitor spending on the line in Florida, this is an existential threat — not just to the tourism industry, but to the communities like ours that depend on it.”
State Rep. Jim Mooney voted against House Bill 1221 and for House Bill 7033. He said legislation he supported contained more elements than the tourist development tax issue. House Bill 7033 also proposes a reduction in Florida’s state sales tax rates by .75%, repeals the aviation fuel tax, delays the effective date of natural gas fuel taxes and extends a local rate freeze for communications services taxes.
Mooney, however, has grave concerns regarding the proposed diversion of tourist development taxes.
“The reality is Colorado tried this in the 1990s. They went from the No. 1 tourist destination in this country to dead last. And it took 15 years to recover,” he said.
State Sen. Ana Maria Rodriguez told Keys Weekly on April 30 that the House and Senate are in negotiations. She said she has serious concerns over the elimination of tourist development tax revenues as it relates to Miami-Dade and Monroe counties.
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