Spring break spurs rise in Orange hotel tax revenue

Spurred by spring break, the revenue generated from the hotel tax continues to rise in Orange County, increasing 12 percent in March compared with March 2017, officials say.

The 6 percent tax on short-term rentals, which are mostly hotels and motels, generated $30.8 million, up $27.5 million from a year earlier. So far, it has amassed nearly $146 million for the 2018 fiscal year, according to Orange County Comptroller Phil Diamond’s office.

“We are now halfway through the fiscal year and the TDT [tourist development tax] numbers continue to rise,” said Diamond in a news release Wednesday. “With March being spring break for schools all over the state, it was a busy month for our hotels and attractions.”

The money helps grow local tourism from bringing sporting events into town to expanding the Orange County Convention Center.

But there has been a push by some in the state to use the growing amount of bed tax funding in other ways that benefit local residents who share the roads and other public services with the flood of visitors that arrive every year.

A recent state change to open up the hotel funding will not affect Central Florida, even though Gov. Rick Scott signed it into law.

As part of HB 7087, the new provision allowed counties that spend at least 40 percent of their revenue on marketing to spend hotel tax money on capital projects. But Orange, Seminole and Osceola counties don’t meet that spending threshold.

Current state law allows counties to spend bed taxes on tourism marketing, beach re-nourishment, convention centers, sports arenas or stadiums, zoos, aquariums and other tourist attractions.

“It’s a victory for tourism,” Richard Maladecki told the Sentinel in March. He is the president and CEO of the Central Florida Hotel and Lodging Association whose organization lobbied state House and Senate leaders for the requirement. Maladecki argued sales taxes generated by tourists already support local governments, schools and infrastructure along with the property taxes hotels and theme parks pay.