Are Tourist Development Tax Increases the Answer to Reducing Revenue
Are Tourist Development Tax Increases the Answer to Reducing Revenue Competition in Florida?
Competition in Florida? The Tourist Development Tax deals with transient rentals and is governed by Florida Statute 125.0104. It has been nicknamed the “Resort Tax” or the “Bed Tax” because it is exclusively associated with renting living quarters for 6 months or less. 1 In Florida the tax rate varies by county, but the cap is 6%. Revenues from this tax can be used for things like construction of tourist-related facilities, promoting tourism, and beach/shoreline maintenance. Anyone that “rents, leases, or lets for consideration any living quarters or accommodations in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, or condominium for a term of six months or less is exercising a taxable privilege. These taxes are to be charged by the person receiving the consideration for rent or lease at the time of payment for such lease or rental”. 2
A recent trend seen by OrdinanceWatch™ is proposed increases to Tourist Development Taxes throughout the state of Florida. Tax rates vary by county depending on the county’s ability to levy certain taxes. Bay County, FL has just adopted ordinances to increase the Tourist Development Tax Rate and amend the Bay County Tourist Development Plan. The four-cent tax took effect on March 1, 2009. The five-cent tax will take effect April 1, 2009. 3
Leon County, FL has tried to reduce revenue competition by providing $1.2 million to the Council on Cultural Arts (COCA) for the past two years. The money provided to COCA was funded through the three-cent tourist development tax in the county. During the FY09 Budget Planning Period, proposals to increase the tax were discussed. Leon County plans to hold a public hearing on March 19, 2009 to discuss the proposed tax increase. 4
Would Tourist Development Tax increases harm or help your business? Do you think they are appropriate during times of recession? Please share your thoughts by commenting below. Here is a list of sample issues from the OrdinanceWatch™ Database regarding proposed Tourist Development Tax increases.
- Marion County, FL to Consider Request to Hold Public Hearing of Ordinance Affecting the Tourist Development Tax
- Miami, FL to Hold Discussion of Tourism and Bed Taxes
- Leon County, FL to Hold Public Hearing of Tourist Development Fifth-Cent Tax
- Bay County, FL Adopts Ordinances to increase the Tourist Development Tax Rate and Amend the Bay County Tourist Development Plan
1. Ingle, M. (2009). What is the Tourist Development Tax? Retrieved March 10, 2009, from the Walton County, FL Clerk of the Court Web page, Web site: http://clerkofcourts.co.walton.fl.us/default.aspx?id=40
2. Florida Department of Revenue. (2009). Tourist Development Taxes. Retrieved March 10, 2009. Web site: http://dor.myflorida.com/dor/taxes/tourist_development.html
3. Bay County, FL County Commission Ordinances. (2009). Increase to the Tourist Development Tax. Retrieved March 11, 2009 from the Clerk of the Commission. Web site: http://www.co.bay.fl.us/bocc/agenda.php
4. Leon County, FL County Commission Ordinance. (2009). Proposed Increase to the Tourist Development Tax. Retrieved March 11, 2009 from the County Administrator’s Office. Web site: http://www.leoncountyfl.gov/bcc/index.asp
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