To significantly reduce property taxes, Congress is considering paying back tourism

Local business groups are warning about a state bill that would make it difficult to sell Tampa Bay and other Florida attractions to tourists, just as beaches regain their footing after two devastating storms.

Pinellas and Hillsborough counties raise more than $150 million each year from hotels to fund everything from advertising at New York City metro stations to improving attractions such as the Dali Museum in St. Petersburg, to beach renouling projects.

However, Rep. Monique Miller of R-Palm Bay is spearheading a bill that effectively refunds tourist boosters like visiting Tampa Bay to visit St. Pete-Clearwater. Instead, hotel taxes must be spent on contracts with official county projects, including but not limited to tourism-related efforts, or by 2026, as a property tax refund. Counties that still want to fund tourism marketing generally need to find money elsewhere.

The Legislative Committee moved the bill forward in a narrow vote Tuesday, with several Republicans opposing Democrats. The Florida home and the Senate must pass the bill before the session ends on May 2nd, as the bill could become law.

Opponents warn that communities like Tampa Bay will need money to sell destinations and enjoy the sales tax revenue and work that tourists bring if they want to continue seeing record numbers of visitors next year. Pinellas County saw 15.4 million visitors last year, funding about a third of its sales tax collection, said Charlie Justice, a former Pinellas County Commissioner who is now CEO of the Tampa Bay Beach Chamber of Commerce.

Visitors also support over 100,000 Pinellas Hospitality jobs, the Chamber of Commerce estimates.

Tourism marketing dollars become even more important when natural disasters affect tourist perceptions of Tampa Bay, Justice said. After Hurricane Helen, visiting St. Pete Clear Water maintained a list of beaches and businesses that have reopened.

“If you go back after the oil spills and look at Florida’s history… After (Covid-19), there’s an increase in spending to sell destinations to remind you that Florida is open for business,” he said. “There’s very little success in industries and brands that don’t advertise.”

Two Tampa Bay representatives weighed yesterday. Rep. Linda Cheney, r-st. Pete Beach said she is happy to defend a bill that could reduce the tax burden on her members.

“My residents have been asking for this for 30 years,” she said.

Lindsay Cross, D-ST. Petersburg asked if the bill sponsors looked into how the beach community would be affected with less funds for tourism marketing. She did not vote to move the bill forward.

The state’s tourism industry and beach uplifting groups – Florida destinations, many Restaurant and Accommodation Associations, Florida Attractions Association, Florida Shore and Beach Preservation Association, and others opposed the bill.

Even if Tampa Bay property owners get refunded all of the $150 million collected from hotel taxes, the small percentage of Hillsboro and Pinellas collecting in property taxes each year, according to Florida’s destinations that support tourism boosters across the state.

“Eliminating tourism promotion is not a measure of cost reduction. It’s an economic disruption,” said executive director Robert Skrob. “The proposal holds the risk of disrupting the tax base that allows more than 2 million Floridians, from hotel workers to small business owners, and allowing Florida’s income-exempt status.”

Supporters of the bill said tourists still flocked to Florida without in-person ads. But justice said advertising spending in the Midwest, for example, would directly increase the number of people traveling to Tampa Bay.

Republicans in some states are wary of a sudden refund of tourism promotions in the state.

“I want to give citizens property tax relief,” said Debbie Mayfield of R-Melbourne. “I don’t think this is the right way.”