Help state economy by investing tax in tourism.
Scott Maxwell’s Wednesday column, “We may finally use hotel tax for local needs,” and other columns over the years, insist on altering current Florida law regarding the permitted use of the tourist development tax on hotel rooms. Unfortunately, this shortsighted view takes the tourism industry and its substantial benefits to our state and local economy for granted.
In 2015, out-of-state visitors spent $108.8 billion and, including indirect and induced impacts, generated $11.3 billion in state and local tax revenue.
Maxwell also compares the bed tax to an employer who gives a raise directly to his employee and in turn, restricts him to using these monies for health care or other necessities. The tourist development tax was created by the lodging community to serve as a catalyst for attracting visitors to the Sunshine State. Hoteliers had the foresight to voluntarily impose a tax on themselves to invest in tourism promotion.
Contrary to the column’s example, the tourist development tax is paid for by visitors, remitted by the hotels and levied by the county. The original statute also ensures the local government, tourism industry, and its residents have representation on the Tourist Development Council to advise and monitor the use of these funds.
In 2016, the state welcomed 113 million visitors and is on track to break records again this year. A decrease in tourism in our communities could ultimately lead to difficult decisions, including layoffs and the shuttering of businesses. In fact, visitor spending currently supports 1.4 million jobs in Florida.
Just last month, we witnessed the havoc that hurricanes can wreak on our industry and, in turn, our state revenues — with lawmakers seeking means to address recovery costs while planning for next year’s budget. Given the many disruptions the hospitality industry has faced in recent years — from natural disasters to health epidemics to violent attacks — it’s imperative these marketing dollars are readily available to launch collective marketing campaigns to affected areas that rely on tourists to return. Any reduction in available tourist development taxes means less money to fulfill the tax's original purpose: marketing.
Not only would local economies see losses in revenue due to scaleddown marketing efforts, but our hotels, restaurants and businesses would undoubtedly suffer if lawmakers were to open the floodgates and deplete these funds by using them for basic government services. Our visitors already carry their fair share, with tourist spending accounting for 24 percent of our state’s sales-tax revenue. These welcomed visitors keep Florida’s businesses strong and reduce the tax burden that would ordinarily be placed on residents in their absence.
As elected officials continue to advocate for less government and decreasing taxes, they should be held accountable for supporting critical services such as public safety and infrastructure. It’s unfair to raid one industry’s fund in hopes of correcting issues that are the collective and fiscal responsibility of local communities.