The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1072
INTRODUCER: Senator Avila
SUBJECT: Tourist Development
DATE: January 29, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Pre-meeting
2. FT
3. AP
I. Summary:
SB 1072 amends s. 125.0104, F.S., to provide an exception to the authorized uses of revenues
received by counties imposing the tourist development tax (TDT). Under the bill, a county as
defined in s. 125.011(1), F.S. (i.e. Miami-Dade County) may use the revenues to complete
existing projects, debt obligations, or contracts in existence as of July 1, 2024. Revenues may not
be used to renew or to extend such projects.
For remaining revenues not needed for existing projects, contracts, or debt obligations, 50
percent of TDT revenues must be distributed proportionally to municipalities in the county for
specified uses.
The county must distribute the remaining tax revenues monthly as follows:
20 percent for the primary bureau, department, or association responsible for organizing,
funding, and promoting artist and cultural organizations;
30 percent for visitors bureaus and homeless shelters; and
50 percent for regular TDT uses.
The bill amends s. 212.0305, F.S., to revise the purposes for which Miami-Dade County may use
charter county convention development revenue, by providing that 50 percent of the revenues
must be distributed proportionally to the governing boards of the municipalities within the
county. Distributions may be used to:
Acquire, construct, extend, enlarge, remodel, repair, improve, operate, or maintain a
convention center, an exhibition hall, a coliseum, an auditorium, a performing arts center, or
a related building or parking facility for such buildings.
Promote and advertise tourism and to fund convention bureaus, tourist bureaus, tourist
information centers, and news bureaus.
REVISED: BILL: SB 1072 Page 2
The county must use the remaining charter county convention development revenue to acquire,
construct, extend, enlarge, remodel, repair, improve, operate, or maintain a countywide
convention and visitors bureau, a convention center, an exhibition hall, a coliseum, an
auditorium, a performing arts center, or a related building or parking facility for such buildings.
The bill takes effect July 1, 2024.
II. Present Situation:
Tourist Development Taxes
Pursuant to the Local Option Tourist Development Act,
1
counties are authorized to levy five
separate taxes on transient rental
2
transactions (tourist development taxes or TDTs). Depending
on a county’s eligibility to levy such taxes, the maximum potential tax rate varies:
The original TDT may be levied at the rate of 1 or 2 percent.
3
An additional 1 percent tax may be levied by counties who have previously levied the
original TDT at the 1 or 2 percent rate for at least three years.
4
A high tourism impact tax may be levied at an additional 1 percent.
5
A professional sports franchise facility tax may be levied up to an additional 1 percent.
6
An additional professional sports franchise facility tax no greater than 1 percent may be
imposed by a county that has already levied the professional sports franchise facility tax.
7
TDT Process
Each county that levies the original 1 or 2 percent TDT is required to have a tourist development
council consisting of county residents who are appointed by the county governing board.
8
The
tourist development council makes recommendations to the county governing board for the
effective operation of special projects or for uses of the TDT revenue.
9
1
Section 125.0104, F.S.
2
Section 125.0104(3)(a)1., F.S., considers “transient rental” to be the rental or lease of any accommodation for a term of six
months or less.
3
Section 125.0104(3)(c), F.S. All 67 of Florida’s counties are eligible to levy this tax, but only 62 counties have done so, all
at a rate of 2 percent. Office of Economic and Demographic Research (EDR), 2024 Local Option Tourist Tax Rates,
http://edr.state.fl.us/Content/local-government/data/county-municipal/2024LOTTrates.pdf (last visited Jan 29, 2024). These
counties are estimated to realize $583 million in revenue from these taxes in the 2023-2024 fiscal year. EDR 2023 Florida
Tax Handbook, p. 289, http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2023.pdf (last visited Jan.
29, 2024).
4
Section 125.0104(3)(d), F.S. Fifty-six of the eligible 59 counties levy this tax, with an estimated 2023-2024 state fiscal year
collection of $254 million in revenue. EDR 2023 Florida Tax Handbook, supra note 3 at.293.
5
Section 125.0104(3)(m), F.S. Ten of the 14 eligible counties levy this tax with an estimated 2023-2024 state fiscal
collection of $161 million in revenue. EDR 2023 Florida Tax Handbook, supra note 3 at 300.
6
Section 125.0104(3)(l), F.S. Revenue can be used to pay debt service on bonds for the construction or renovation of
professional sports franchise facilities, spring training facilities or professional sports franchises, and convention centers and
to promote and advertise tourism. Forty-six of the 67 counties levy this additional tax, with an estimated 2023-2024 state
fiscal year collection of $259 million in revenue. EDR 2023 Florida Tax Handbook, supra note 3 at 297.
7
Section 125.0104(3)(n), F.S. Thirty-six of the eligible 65 counties levy the additional professional sports franchise facility
tax, with an estimated 2023-2024 state fiscal year collection of $226 million in revenue. EDR 2023 Florida Tax Handbook,
supra note 3 at 303.
8
Section 125.0104(4)(e), F.S.
9
Id. BILL: SB 1072 Page 3
Prior to the authorization of the original 1 or 2 percent TDT, the levy must be approved by a
countywide referendum held at a general election,
10
and additional TDT levies must be
authorized by a vote of the county’s governing board or by voter approval in a countywide
referendum.
11
Each county proposing to levy the original 1 or 2 percent tax must then adopt an
ordinance for the levy and imposition of the tax,
12
which must include a plan for tourist
development prepared by the tourist development council.
13
The plan for tourist development
must include the anticipated net tax revenue to be derived by the county for the two years
following the tax levy, as well as a list of the proposed uses of the tax and the approximate cost
for each project or use.
14
The plan for tourist development may not be substantially amended
except by ordinance enacted by an affirmative vote of a majority plus one additional member of
the governing board.
15
TDT Uses
The revenues derived from TDTs may be used for:
16
The acquisition, construction, extension, enlargement, remodeling, repair, or improvement of
a publicly owned and operated convention center, sports stadium, sports arena, coliseum,
auditorium, aquarium, or a museum that is publicly owned and operated or owned and
operated by a not-for-profit organization, or promotion of a zoo.
Promoting and advertising tourism in the state.
Funding of convention bureaus, tourist bureaus, tourist information centers, and news
bureaus as county agencies, or by contract with chambers of commerce or similar
associations in the county.
Financing beach park facilities or beach improvement, maintenance, renourishment,
restoration, and erosion control, including shoreline protection, enhancement, cleanup or
restoration of inland lakes and rivers to which there is public access as those uses relate to the
physical preservation of the beach, shoreline, or inland lake or river.
17
In counties with populations less than 950,000, the acquisition, construction, extension,
enlargement, remodeling, repair, or improvement, maintenance, operation, or promotion of
zoos, fishing piers, or nature centers which are publicly owned and operated or owned and
operated by a not-for-private organization and open to the public.
18
Securing revenue bonds issued by the county for the acquisition, construction, extension,
enlargement, remodeling, repair, or improvement of a publicly owned and operated
convention center, sports stadium, sports arena, coliseum, auditorium, aquarium, or a
museum, or financing beach park facilities or beach improvement, maintenance,
renourishment, restoration, and erosion control.
10
Section 125.0104(6), F.S.
11
Section 125.0104(3)(d), F.S.
12
Section 125.0104(4)(a), F.S.
13
Section 125.0104(4), F.S.
14
Id.
15
Id. The provisions found in s. 125.0104(4)(a)-(d), F.S., do not apply to the high tourism impact tax, the professional sports
franchise facility tax, or the additional professional sports franchise facility tax.
16
Section 125.0104(5), F.S.
17
In counties with populations less than 100,000, up to 10 percent of TDT revenues may be used for financing beach park
facilities. See s. 125.0104(5)(a), F.S.
18
Section 125.0104(5)(b), F.S. BILL: SB 1072 Page 4
Home Rule Charter Counties
Section 125.011(1), F.S., defines a county as:
Any county operating under a home rule charter adopted pursuant to ss. 10, 11, and 24,
Art. VIII of the Constitution of 1885, as preserved by Art. VII, s. (e) of the Constitution of
1968, which county, by resolution of its board of county commissioners, elects to exercise
the powers herein conferred. Use of the word “county” within the above provisions shall
include “board of county commissioners” of such county.
The local governments authorized to operate under a home rule charter by sections 10, 11, and
24, Art. VIII of the Constitution of 1885, are the city of Key West and Monroe County,
19
Miami-
Dade County,
20
and Hillsborough County.
21
Of these, only Miami-Dade County currently
operates under a home-rule charter adopted pursuant to these specific provisions.
Convention Development Taxes
Each county, as defined by s. 125.011(1), F.S., (i.e., Miami-Dade County) is authorized to
impose a 3 percent convention development tax on the total consideration charged for transient
rental transactions. The tax must be levied pursuant to an ordinance enacted by the county’s
governing body.
22
During fiscal year 2022-2023, Miami-Dade generated approximately $130
million in revenue.
23
Tax proceeds must be used in the following manner:
24
Two-thirds of the proceeds must be used to extend, enlarge, and improve the largest existing
publicly owned convention center in the county.
After completion of any project above, proceeds may be used to acquire, construct, extend,
enlarge, remodel, repair, improve, plan for, operate, manage, or maintain one or more
convention centers, stadiums, exhibition halls, arenas, coliseums, auditoriums, or golf
courses, and may be used to acquire and construct an intercity light rail transportation
system.
One-third of the proceeds must be used to construct a new multipurpose
convention/coliseum/exhibition center/stadium or the maximum components thereof as funds
permit in the most populous municipality in the county.
After completion of the above projects, tax revenues and interest accrued pursuant to that
authorized use may be used, as determined by the county to operate an authority created
pursuant to s. 212.0305(4)(b)4., F.S., or to acquire, construct, extend, enlarge, remodel,
repair, improve, operate, or maintain one or more convention centers, stadiums, exhibition
halls, arenas, coliseums, auditoriums, golf courses, or related buildings and parking facilities
in the most populous municipality in the county.
19
Art. VIII, s. 6, n. 2
20
Art. VIII, s. 6, n. 3
21
Art. VIII, s. 6, n. 4
22
Section 212.0305(4)(b)1., F.S.
23
Florida Office of Economic and Demographic Research, 2023 Florida Tax Handbook, p. 312,
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2023.pdf (last visited Jan. 29, 2024).
24
Section 212.0305(4)(b)2., F.S. BILL: SB 1072 Page 5
Prior to the county enacting an ordinance imposing the levy, the county must notify the
governing body of each municipality in which projects are to be developed. As a precondition to
the receipt of funding, the governing bodies must designate or appoint an authority that has the
power to approve the concept, location, program, and design of the facilities or improvements to
be developed. The authority administers and disburses the tax proceeds and any other related
source of revenue. However, the authority’s annual budget is subject to approval of the
municipality’s governing body.
25
The governing body of each municipality levying the tax may adopt a resolution prohibiting the
imposition of the convention development tax within the municipality’s jurisdiction. If a
municipality adopts such a resolution, the tax is imposed by the county in all other areas of the
county except such municipality. No funds collected from the convention development tax may
be expended in a municipality that has adopted such a resolution.
26
III. Effect of Proposed Changes:
The bill amends s. 125.0104, F.S., to provide an exception to the authorized uses of revenues
received by counties imposing the TDT for a county defined in s. 125.011(1), F.S. (i.e. Miami-
Dade County). The bill specifies that revenues may be used to complete any project underway or
to perform any contract in existence as of July 1, 2024, and that revenues may not be used to
renew or extend the contracts or projects. Bonds or other outstanding debt as of July 1, 2024,
may be refinanced; however, the duration of the debt pledging the TDT may not be extended and
the outstanding principal may not be increased, except to account for the costs of issuance.
Revenues not needed for projects, debt obligations, or contracts must be distributed as follows:
50 percent must be distributed proportionally to the governing authorities of the
municipalities within the county on a monthly basis. The receiving municipality may use the
distributions to:
Promote and advertise tourism.
Fund convention bureaus, tourist bureaus, tourist information centers, and news
bureaus. Municipalities may enter into interlocal agreements for the purpose of using
the revenue for these stated purposes in combination with moneys used by the county
for a countywide convention and visitor bureau pursuant to s. 212.0305(4)(b)2.b.(II),
F.S.
Acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate, or
finance public facilities
27
within the boundaries of the municipality, if the public
facilities are needed to increase tourist-related business activities in the municipality.
Tax distributions may be used for any related land acquisition, land improvement,
design and engineering costs, and all other professional and related costs required to
bring the public facilities into service. Tax distributions may only be used if:
o At least 2/3 of the governing authority of the municipality approves the use;
o No more than 70 percent of the cost will be paid for using TDT revenues;
25
Section 212.0305(4)(b)4., F.S.
26
Id.
27
The bill defines the term “public facilities” as major capital improvements that have a life expectancy of 5 or more years,
including, but not limited to, transportation; sanitary sewer, including solid waste, drainage, and potable water; and
pedestrian facilities. BILL: SB 1072 Page 6
o No more than 40 percent of all TDT revenues distributed to the municipality are
spent to promote and advertise tourism.
Acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate, or
promote parks or trails that are publicly owned and operated or owned and operated
by not-for-profit organizations and open to the public.
Reimburse expenses incurred in providing public safety services including emergency
medical services as defined in s. 401.107(3), F.S., and law enforcement needed to
address impacts related to increased tourism and visitors to a municipality.
Finance water quality improvement projects including, but not limited to, flood
mitigation; algae control, cleanup, or prevention measures; and Biscayne Bay and
waterway network restoration activities.
Provide for septic-to-sewer conversion projects.
The county must distribute the remaining tax revenues monthly as follows:
20 percent for the primary bureau, department, or association responsible for organizing,
funding, and promoting artist and cultural organizations;
30 percent for visitors bureaus and homeless shelters under s. 212.0306(3), F.S.; and
50 percent for regular TDT uses.
The bill amends s. 212.0305, F.S., to revise the purposes for how a county may use charter
county convention development moneys. The bill provides that 50 percent of charter county
convention development money must be distributed proportionally to the governing boards of the
municipalities within the county on a monthly basis. Moneys collected in unincorporated areas of
the county are not included in the distribution. The distributions may be used for the following
purposes:
To acquire, construct, extend, enlarge, remodel, repair, improve, operate, or maintain a
convention center, an exhibition hall, a coliseum, an auditorium, a performing arts center, or
a related building or parking facility to such buildings.
To promote and advertise tourism and to fund convention bureaus, tourist bureaus, tourist
information centers, and news bureaus. Municipalities may enter into interlocal agreements
to use the revenue in combination with moneys used by the county for a countywide
convention and visitor’s bureau.
The county must use the remaining charter county convention development money only for the
following purposes:
To acquire, construct, extend, enlarge, remodel, repair, improve, operate, or maintain a
convention center, an exhibition hall, a coliseum, an auditorium, a performing arts center, or
a related building or parking facility for such buildings.
To acquire, construct, extend, enlarge, remodel, repair, improve, operate, or maintain a
countywide convention and visitors bureau which, by interlocal agreement and contract with
the municipalities within the county, has the primary responsibility for promoting the county
and its municipalities as a destination site for conventions, trade shows, and pleasure travel,
or to be used for regular TDT uses. If the county is not or is no longer a party to an interlocal
agreement, the county must distribute the revenue for regular TDT uses.
BILL: SB 1072 Page 7
The bill deletes the requirement that the county notify the governing board of each municipality
before enacting an ordinance imposing the levy, as well as the designation or appointment of an
authority and the powers granted to the authority.
Lastly, the bill directs the Division of Law Revision to replace the phrase “the effective date of
this act” wherever it occurs in this act with the date the act becomes law.
The bill takes effect July 1, 2024.
A. Municipality/County Mandates Restrictions:
Article VII, section 18 of the Florida Constitution requires a two-thirds vote of the
membership of each house of the Legislature to pass legislation requiring counties and
municipalities to spend funds, limiting their ability to raise revenue, or reducing the
percentage of a state tax shared with them. This bill does not require counties or
municipalities to spend funds, limit their authority to raise revenue, or reduce the
percentage of a state tax shared with them as specified in Article VII, section 18 of the
Florida Constitution. Therefore, the provisions of Article VII, section 18 of the Florida
Constitution do not apply.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The bill does not create or raise a state tax or fee. Therefore, the requirements of Art. VII,
s. 19 of the Florida Constitution do not apply.
E. Other Constitutional Issues:
None identified.
IV. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None. BILL: SB 1072 Page 8
C. Government Sector Impact:
None.
V. Technical Deficiencies:
None.
VI. Related Issues:
None.
VII. Statutes Affected:
This bill substantially amends sections 125.0104 and 212.0305 of the Florida Statutes.
VIII. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.