STATE BILLS TARGET TOURISM DOLLARS FOR PROPERTY TAX RELIEF – Keys Weekly Newspapers

Taxes paid by visitors to the Sunshine State, which are currently used for tourism marketing and facilities, could soon go to reduce county property taxes, per a set of proposals in the Florida House.
Specifically, two pieces of legislation aim to eliminate the use of tourist development tax (TDT) revenues for promoting and attracting tourism — and instead using them to provide property owners with a bit of tax relief beginning in 2026. House bills 1221 and 7033 moved favorably out of the State Affairs and Budget committees on April 22.
Per an analysis of the bills, beginning in 2026, a credit against county property taxes must be applied to property tax bills that, in total, equals the prior year’s TDT collections less any revenue needed for debt service or to continue any contract in effect on July 1, 2025. The credit on bills may either be proportionate shares of the TDT collections for all county taxpayers, or can be allocated among certain categories of taxpayers according to an ordinance adopted by the board of county commissioners.
Not only would both bills divert TDT funds to property tax relief, but they also would dissolve tourist development councils across the state. Tourism promotion agencies would also cease to exist, unless approved by the county commission via resolution on or before Dec. 31, 2025. And just keeping any local tourism dollars would require a referendum every eight years.
The House Budget Committee chair, State Rep. Lawrence McClure, said Visit Florida would not be eliminated with county-level tourism councils. Visit Florida is the state’s official destination marketing organization.
Many in the tourism and lodging sectors view the proposals as a direct attack on a booming industry in Florida — with visitor spending in the state reaching $124 billion last year. Figures show roughly 2 million Floridians are employed in the hospitality and tourism industries.
“Make no mistake: this is not a tax cut — it’s a job killer,” said Visit Florida Keys president and CEO Kara Franker. “This is an existential threat — not just to the tourism industry, but to the communities like ours that depend on it.”
In the Florida Keys, the proposal could deliver a devastating blow to a tourism industry that generated $61.4 million in tourist development taxes in 2023 and 2024. Visitors booking overnight lodging in the Florida Keys pay a 4% tourism development tax, in addition to a 7.5% sales tax and 1% tourist impact tax. TDT revenues fund brick and mortar improvements for tourist-related organizations, events up and down the island chain as well as advertising and promotion. The Monroe County TDC manages the local tourism marketing efforts to assure long-term economic stability resulting from visitor-related revenues.

“For a community that relies so heavily on tourism to drive its economy, it would be highly concerning to see any disruptions to the marketing efforts to the Florida Keys as a tourism destination,” said Robert Spottswood Jr., president for the Spottswood Companies.
Last year, the local TDC allocated $4.4 million to 140 events and festivities. A total of $11.1 million was allocated for capital projects among tourist-related businesses and organizations from Key Largo to Key West. The TDC funded municipalities’ improvements in public facilities, beach maintenance and restoration, park improvements, museum refurbishment projects and new public restroom facilities.
Nonprofit organizations throughout the Keys also received funding throughout the Florida Keys, including Key West Wildlife Center, National Marine Sanctuary Foundation, Dolphin Research Center, Reef Marine Conservation Center, Alligator Reef Light Station off Islamorada, History of Diving Museum, Key West Art and Historical Society, Florida Keys Land & Sea Trust and Jacobs Aquatic Center in Key Largo.
“It’s important we let legislators understand that TDT taxes have great benefits to taxpayers here and all throughout Florida,” said Dan Samess, Marathon Chamber of Commerce CEO. “It literally subsidizes our property taxes, allows local governments to maintain beaches and parks and provides funding for coral restoration projects, local nonprofits, the arts and much more.”
Samess added if the House bills related to TDTs pass, the financial burden would fall solely on local governments, negating any property tax savings legislators suggest.
State Rep. Monique Miller, a Republican from Palm City, is sponsoring House Bill 1221. She told fellow representatives on the State Affairs Committee her bill gives local governments more control over these taxes and the power to use the revenue to make Florida more affordable for its residents.

“Between inflation, the cost of the insurance crisis, people are losing their homes,” Miller said. “This is a way to bring them immediate relief, and also give them the tools to regrow their community the way that they think is best.”
State Rep. Jim Mooney voted against House Bill 1221, but he voted for the larger taxation legislation in 7033. Mooney, who is vice chair on the State Affairs Committee and a Budget Committee member, said the state is built on tourism. And while he said he admired the thought of cutting property taxes, the actual savings wouldn’t be much.
“I believe you said (it would bring) $1.5 billion in savings. That’s $68.78 per every man, woman and child in the state. That is not going to be magnificently successful,” Mooney said to Miller during the State Affairs Committee.
Mooney said there are many unintended consequences with the bill that will be negative. He noted that Colorado tried a similar proposal in the 1990s.
“The reality is they tried this and it was a miserable failure, they went from the No. 1 tourist destination in this country to dead last. And it took 15 years to recover. We can’t wait 15 years to recover,” he said.
Both bills will go before the full House on April 25. If approved, legislation would have to be approved in the Senate in order for it to reach the governor’s desk.

MARATHON WEEKLY
305.743.0844
9709 OVERSEAS HWY
OLDE TOWNE CENTRE
MARATHON, FL 33050
UPPER KEYS WEEKLY
305.363.2957
89240 OVERSEAS HIGHWAY, SUITE 2
TAVERNIER FL 33070
KEY WEST WEEKLY
305.453.6928
5450 MACDONALD AVENUE, NO. 5
KEY WEST, FL 33040