Orlando, FL — Representative Anna V. Eskamani and Senator Carlos Guillermo Smith have filed HB6031 a repealer bill to allow counties like Orange to spend additional hotel bed tax revenue on mass transit and other public facilities, freeing up property tax revenue to go towards other essential needs like affordable housing.
Every year, the tourism industry lobbies hard to ensure that counties can only spend hotel taxes on items that drive more business to them, like advertising and convention centers. But in 2018, led by lawmakers from Brevard County who wanted to spend tourist taxes on sewer facilities to reduce pollution into the Indian River Lagoon, the Florida Legislature passed a law allowing counties to spend hotel taxes on “public facilities” — defined as major capital projects that help increase tourism. The definition includes transportation and pedestrian facilities, among other things.
However, there was a catch — during the final week of that legislative session, the Florida Senate amended the bill to add a restriction that prevents counties from spending hotel taxes on public facilities unless they also spend at least 40% of their taxes promoting and advertising tourism. This repealer bill removes that 40% requirement.
“Removing this restriction would allow Orange County and other county officials to spend hotel taxes on mass transit projects in its tourist areas – things like expanded Lynx bus service to Disney World or a SunRail connection to the airport – that could be of real help to front-line workers and residents,” said Representative Eskamani. “This could even allow the county to spend hotel taxes on affordable housing projects or anything else that is deemed a public facility needed to increase tourism. We’re facing a major affordable housing crisis in Central Florida and this is a way to build more attainable housing while not increasing taxes.
“It’s time to modernize the way we think about Tourist Development Tax revenues,” added Senator Smith. “While tourism remains a cornerstone of Florida’s economy, we must ensure that TDT dollars are working harder for all Floridians by addressing pressing issues like affordable housing and infrastructure. This bill empowers local governments to meet their community’s unique needs while continuing to support our tourism industry.”
This legislation has already garnered support from local government leaders like Orange County Commissioner Dr. Kelly Semrad, advocacy groups, and residents who recognize the potential for TDT revenues to address critical infrastructure and housing challenges.
Commissioner Dr. Kelly Semrad stated, “Tourism destinations across Florida should have the flexibility to allocate tourism tax revenues toward community impact projects that not only enhance the visitor experience but also improve the quality of life for local residents. In Orange County, we welcome approximately 75 million tourists annually, yet our community often sees limited benefits in return. As an international tourism expert and a representative of Orange County District 5, I fully support Rep. Eskamani’s repealer. This repealer presents a critical opportunity for lawmakers to empower tourism destinations to invest in infrastructure improvements that can lower the cost of living and ease traffic congestion—without burdening local taxpayers. Our community’s needs far outweigh the profit-driven priorities of the tourism industry.”
As this legislation moves through the 2025 legislative session, Representative Eskamani and Senator Smith encourage Floridians to advocate for its passage. By working together, we can ensure that TDT revenues are used to build a more resilient and equitable future for all.