The good news:
Changes in the state tax-cut plan will allow governments and tourist development councils for the first time to spend hotel tax revenues on tourism-related infrastructure projects. The bad news: It won’t affect Central Florida’s tourism corridor.
Central Florida governments won’t be able to spend hotel tax money on new roads, bike paths or other tourism-related infrastructure even if Gov. Rick Scott signs a bill in law that would allow it.
As part of HB 7087, a new provision will allow counties to spend some money collected from hotel taxes on capital projects. However, only tourist development councils that spend at least 40 percent of their revenue on marketing are eligible, and that excludes Orange, Seminole and Osceola counties, said Richard Maladecki, president and CEO of the Central Florida Hotel and Lodging Association.
“It’s a victory for tourism,” said Maladecki, whose organization lobbied state House and Senate leaders for the requirement.
The tourist tax provision was part of a $170 million tax cut plan legislators approved Sunday.
The 40 percent rule was a late addition in response to opposition from the lodging association, which voiced concerns about spending money on infrastructure instead of on marketing and advertising, said Rep. Randy Fine, R-Brevard County, the bill’s sponsor.
Current law allows counties to spend bed taxes on tourism marketing, beach re-nourishment, convention centers, sports arenas, zoos, aquariums and other tourist attractions.
But Fine pushed to free up money for infrastructure, saying it didn’t make sense to spend tourism development tax money on a convention center, for instance, but not on a new road leading to the convention center. Fine filed an earlier bill this session to add more flexibility for bed taxes after his county’s tourism board refused to spend money on cleaning up the Indian River Lagoon. The change would apply to Brevard County.
“It’s important because the goal of tourist development tax is to grow tourism. We wanted to free up TDT councils to make the right decision what would grow tourism,” Fine said. “That might be an infrastructure project.”
But Maladecki argued sales taxes generated by tourists already help support local governments, schools and infrastructure in addition to property taxes that hotels and theme parks pay.
“The idea of tourist development tax is to maintain the viability of the tourism industry,” he said.
The tourist tax generates millions in Central Florida’s tourism corridor.
The 6 percent charge on hotels, motels and short-term lodging in Orange County brought in about about $255 million during the 2017 fiscal year. Orange County spends about 20 percent of the tax revenue to promote and advertise tourism, a spokeswoman said.
Orlando Mayor Buddy Dyer was not available for comment Monday, but his spokeswoman said he supports adding another cent to the hotel-tax rate that would be earmarked for infrastructure needs, including transit, “that will benefit our residents and that our visitors do put additional pressure on.”
Orange County Mayor Teresa Jacobs was also not available for comment but is known for supporting the tourism industry.