A proposal backed by the Florida Home to divert a big portion of tourism {dollars} for property-tax aid didn’t garner help from their counterparts within the Senate because the sixtieth day of legislative session got here to an finish earlier within the month.
Sending 75% of a county’s vacationer growth tax income, which is paid by guests who e book in a single day lodging, to cut back the property tax levy in 2026 isn’t fully off the desk, since discussions on the funds and tax issues aren’t over. If the Senate’s unwillingness to take up the Home proposal is any indication, nevertheless, use of TDTs for its authentic function of promoting and promotion, in addition to funding enhancements for tourism-related companies and occasions, may keep intact for an additional 12 months.
Two payments passing by means of the Home not solely aimed to redistribute the tourism tax cash for property tax aid, however additionally they proposed to remove county vacationer growth councils starting July 1. Home Invoice 7033 proposed to revise provisions regarding taxation, together with use and distribution of tax income, whereas Home Invoice 1221 sought to vary provisions associated to native choice taxes, together with vacationer growth tax.
Neither of these payments gained traction within the Senate because the sixtieth day of session concluded on Could 2.
Members of the Florida Home returned to Tallahassee on Could 13 after Home Speaker Daniel Perez despatched fellow members dwelling the week of Could 5-9. Perez hoped to proceed discussions based mostly on the funds framework Perez and Senate President Ben Albritton developed earlier than the top of session on Could 2. Intertwined in these discussions have been proposals to supply tax aid.
Talking earlier than the complete Home on Could 13, Perez stated Albritton blew up the deal. A Could 9 memo by Albritton to fellow Senators states that the governor expressed concern concerning the tax aid framework introduced Could 2 – particularly, that the proposal for an across-the-board gross sales tax lower of .75% to make it 5.25% would unduly profit vacationers and foreigners and is, “lifeless on arrival.”
Regardless of the event, Perez stated, it wouldn’t cease the Home from persevering with to again a fiscally-constrained spending plan. Since taking the gavel as speaker this 12 months, Perez has made it recognized that the state authorities has “an excessive amount of cash and extra money has led us to spend recklessly.” He’s attributed the expansion in gross sales tax collections to extra spending on the state stage.
“I’ve very robust emotions concerning the Senate president’s actions. As presiding officers, as elected officers, our phrase is our bond. Breaking our phrase, breaking a deal is breaking religion not solely with each other but additionally with our establishments,” Perez stated. “I cannot enable our actions to discourage from fulfilling our constitutional obligation.”
The latest funds framework collapse between the Home and Senate is one other instance of the rising division between the chambers. There’s additionally been heated phrases between the Home speaker and Gov. Ron DeSantis over tax aid plans. DeSantis has blasted the Home proposal to slash the gross sales tax. However Perez stated the dialog round lowering state income, similar to lowering gross sales tax, has nothing to do with the problem of native property taxes.
“They don’t seem to be linked. They don’t seem to be interdependent. We will and we must always do each,” stated Perez, who shaped a Choose Committee on Property Taxes. The committee can be tasked with reviewing the present state of property taxes in Florida and exploring revolutionary coverage options to cut back the monetary burden on householders.
As for fast property tax aid, Perez alluded to the Home proposal to make use of vacationer growth tax income.
“TDT reform is without doubt one of the few choices in our direct management as vacationer growth taxes are approved by state statute,” Perez stated. “All different property tax reform concepts would require an modification to the Florida Structure, which might not be on the poll till 2026.”
Regardless of all of the uncertainty, Kara Franker, president and CEO of Go to Florida Keys and Monroe County Vacationer Improvement Council, stated she’s hoping state leaders come to some kind of decision that doesn’t put the TDC on the chopping block or redirect tourism funds away from advertising and marketing and supporting packages like coral restoration.
“Guests spend $3.5 billion per 12 months in Monroe County,” she stated. “And there’s the $35 million in vacationer growth taxes which are going on to workforce housing within the Florida Keys.”
