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 1748
INTRODUCER: Senator Brodeur
SUBJECT: Tourist Development Tax
DATE: January 22, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 1748 prohibits a tourist development council’s plan for tourist development, which is
required for the allocation of tourist development tax revenue, from allocating more than 25
percent of the tax revenue received for a fiscal year to fund an individual project unless the
governing board of the county approves the use by a supermajority vote.
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
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 22, 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.
22, 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.
REVISED: BILL: SB 1748 Page 2
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
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 must include the
anticipated net tax revenue to be derived by the county for the two years following the tax levy,
the tax district in which the enactment or renewal of the ordinance levying and imposing the
TDT is proposed; and a list of the proposed uses of the tax and the approximate cost for each
project or use.
14
The plan must also include the approximate cost or expense allocation for each
specific project or special use.
15
The county governing board must adopt the plan as part of the
ordinance levying the tax. The plan may not be substantially amended except by ordinance
enacted by an affirmative vote of a majority plus one additional member of the governing
board.
16
TDT Uses
The revenues derived from TDTs may be used for:
17
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.
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
Section 125.0104(4)(c), F.S.
15
Id.
16
Section 125.0104(4)(d), F.S. 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.
17
Section 125.0104(5), F.S. BILL: SB 1748 Page 3
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.
18
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.
19
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.
III. Effect of Proposed Changes:
The bill amends s. 125.0104, F.S., to prohibit a tourist development plan from allocating more
than 25 percent of the tax revenue received for a fiscal year to fund an individual project unless
the governing board of the county approves the use by a supermajority vote.
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
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.
18
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.
19
Section 125.0104(5)(b), F.S. BILL: SB 1748 Page 4
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.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 125.0104 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None. BILL: SB 1748 Page 5
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.