The Tourist Development Tax (TDT) is a 6 percent tax on the total rental amount collected from any person or other party who rents, leases or lets for consideration living quarters or accommodation in hotels, apartment hotels, motels, resort motels, apartments, apartment motels, rooming houses, tourist or trailer camps, vessels or condominiums for a period of six months or less.
The Florida House of Representatives is considering legislation (HB 7033 and HB 1221) that would eliminate the use of the TDT for tourism promotion and tourism marketing, undermining an industry that drives the economy of Hillsborough County and the state.
“The Tourism Development Tax is exactly how it sounds; it’s a tax that visitors pay that then funds marketing initiatives to better support and promote the tourism industry here in Hillsborough County and the state of Florida as a whole,” said Jerilyn Rumbarger, president of the Plant City Chamber of Commerce. “This tax is often referred to as the ‘bed tax,’ and a common saying for it is ‘heads in beds, feet in seats, etc.,’ which ultimately refers to hotel occupancy and visitor numbers. Florida counties are responsible for imposing the tax and it can range anywhere from 1 percent to 6 percent and is guided by a Tourist Development Council (TDC) that makes recommendations to the county commission.”
The TDT supports marketing campaigns that attract visitors from all over the world, funds the maintenance of county beaches and parks and contributes to local efforts like Tourist Information Centers, which the Plant City Chamber of Commerce is hub for in Eastern Hillsborough County.
“At the state level, the TDT contributes to Florida’s robust tourism industry which we saw as an industry leader during and coming out of the COVID-19 pandemic,” Rumbarger said. “By investing in tourism-related projects and marketing, the TDT directly supports jobs, generates tax revenues that are not at the expense of residents and supports businesses across various industries. Eliminating the TDT would have a negative impact on both local communities and the state of Florida’s economy.”
The community should keep a close watch on what will happen with the TDT.
“At this point in time, I think the best option for community impact would be to stay informed,” Rumbarger said. “Understand the importance of the TDT and the potential impacts of proposed legislative changes. Stay engaged with your local and state representatives to express your support on maintaining the TDT and its current allocations. Lastly, promote local tourism; attend events and attractions that highlight the value of tourism in our communities.”
If you would like to learn more about the Tourism Development Tax, you can visit the Hillsborough County tax collector’s website at www.hillstaxfl.gov/other-services/tourist-development/.
