Destinations Florida, the statewide association that serves local tourism promotion organizations, says that if a State House bill goes into effect, it will harm local communities’ tax bases.
In Florida, a tourist tax, also known as a tourist development tax, is a local option tax that is levied on transient rentals for stays of six months or less. The tax rates and approved uses vary by county; however, revenues are generally used for tourism-related purposes, such as marketing, capital improvements, and beach maintenance.
However, House Bill 7033 would alter how Tourist Development Taxes are allocated, with opponents arguing that it could harm local tourism.
Using data figures available from VISIT FLORIDA, researchers found that Florida might see a 30 percent decrease in tourism within two years, resulting in:
- $37.2 billion less in economic impact in Florida
- 682,000 fewer jobs for Florida residents
- $22.5 billion less in wages to Florida residents
- $4.54 billion less in state and local taxes collected
“House Bill 7033 will leave Florida residents saddled with increased costs to fund programs, services and facilities that tourism-generated revenue currently supports,” said Robert Skrob, Executive Director of Destinations Florida.
At the request of Florida hoteliers, the Florida Legislature passed a state law that would allow counties to levy Tourist Development Taxes. The hotel and lodging industry voluntarily agreed to have these taxes levied on themselves, creating a dedicated revenue stream for local tourism promotion with the sole purpose of maintaining and growing visitation levels to the area.
Tourism and efforts to attract visitors to Florida’s many destinations have significant positive impacts on all residents of the state. Thanks to tourism and the revenue it generates:
Florida residents do not pay a state income tax, making Florida one of only eight states that do not have a state income tax.
Every Florida household saves more than $1,900 a year on state and local taxes.
More than 2 million Floridians have jobs in hotels, restaurants, attractions, and other tourism-reliant businesses. Florida’s tourism industry welcomed a record-breaking 142.9 million visitors to the state in 2024. That visitation generated $127.7 billion in economic impact and supported 2.1 million jobs in 2023, making tourism a key economic engine benefiting Florida families.
