Latest news with #HB7033
Miami Herald
03-05-2025
- Business
- Miami Herald
Florida lawmakers left Tallahassee without a budget deal. Here's what happens next
House and Senate leaders said late Friday they had reached agreement on a 'framework' for a budget deal that would include $2.8 billion in tax cuts, with lawmakers expected to return to the Capitol during the week of May 12 to negotiate details. House Speaker Daniel Perez, R-Miami, and Senate President Ben Albritton, R-Wauchula, made the announcement on the final scheduled night of a contentious 60-day legislative session. Lawmakers had to approve an extension of the session because they did not finish the budget. 'I know the extension of session presents difficulties and challenges for you and your families,' Perez told House members. 'I apologize for this delay. But I believe it is better to do it right than to do it fast.' Perez said the budget for the 2025-2026 fiscal year, which will start July 1, will total less than Gov. Ron DeSantis' proposed $115.6 billion spending plan, though he did not give an exact amount. He also said the tax-cut package will include his priority of reducing the state's 6% sales-tax rate. 'We have a responsibility to safeguard taxpayer dollars and improve accountability, transparency, and oversight of government spending,' Albritton said to senators. During the extended session, lawmakers will consider only the budget and related bills. That means a wide range of other bills died Friday night after not passing during the 60 days. The House adjourned at 10:23 p.m., with the Senate following nine minutes later. Lawmakers, who will not be in Tallahassee next week, need to pass a budget before the start of the fiscal year. Also, DeSantis has line-item veto power before the budget takes effect. The House and Senate were at odds for weeks about the budget and tax cuts, as leaders held talks behind the scenes to try to work out differences. The House and Senate passed budget proposals last month with a more than $4 billion gap. The House's proposal totaled $112.95 billion, while the Senate's weighed in at $117.36 billion. The House proposed a tax package (HB 7033) totaling about $5 billion, with cuts largely stemming from a plan to permanently reduce the state's sales-tax rate from 6% to 5.25%. The Senate proposed a $1.83 billion tax-cut package (SB 7034) that included eliminating sales taxes on clothing and shoes that cost $75 or less. Sen. Don Gaetz, a Niceville Republican who was Senate president during the 2013 and 2014 sessions, said this isn't the first time lawmakers have disagreed on the budget. 'Our obligation is to agree on a budget before the end of the fiscal year,' Gaetz said earlier Friday. 'My hope is that, in the intervening time between now and the time we come back, that there would be folks from the Senate and folks from the House who would lock themselves in a windowless room with warm beer and cold pizza and come up with a solution.' Other sessions have had acrimonious endings, such as a 2011 standoff involving then-House Speaker Dean Cannon, R-Orlando, and then-Senate President Mike Haridopolos, R-Melbourne. Sen. Gayle Harrell, a Stuart Republican in her 23rd year in the Legislature, has seen sessions deteriorate in the final hours, but noted Friday 'this is not a typical end of session.' 'I've been through other tense sessions, you know. I remember the Haridopolos-Dean Cannon days. I remember the Johnny Byrd days,' Harrell said, referring to former House Speaker Johnny Byrd, a Plant City Republican who clashed with other lawmakers. 'So there's been other tense sessions. This one is probably the most tense in the last week that I've seen.' Rep. Ashley Gantt, D-Miami, called the process 'extremely frustrating,' but said 'it's part of what I signed up for.' 'It is part of my philosophy to not have expectations up here,' Gantt said. Lawmakers have had a combative year, which started with DeSantis squaring off with the House and Senate leaders over carrying out President Donald Trump's efforts to crack down on illegal immigration. While agreements on immigration issues were reached at the end of three special sessions, DeSantis and Perez have remained at odds, including over a House investigation into a foundation linked to first lady Casey DeSantis' signature economic-assistance program, Hope Florida. DeSantis has traveled the state to attack the probe and legislative proposals that sought to limit his powers. House and Senate budget leaders struggled to reach agreement on 'allocations' — overall dollar amounts for different areas of spending — needed to begin formal budget conference negotiations. Albritton indicated Friday night that talks about the allocations would continue next week. Albritton in recent weeks pointed to 'philosophical differences' with the House, as he expressed concerns about approving recurring tax cuts amid unsettled national economic forecasts. He raised the possibility that deep cuts could force lawmakers to address financial shortfalls in future years. Perez accused the Senate of supporting 'pathological overspending' while arguing lawmakers should cut taxes to curb spending. While making an appearance Wednesday at a Fruitland Park school, DeSantis placed blame on the House, saying, 'this will go down as the least productive Florida House of Representatives in decades.' DeSantis also described the House as being focused 'on the personal agendas of the leadership.'
Yahoo
01-05-2025
- Business
- Yahoo
Florida must stop its war on tourism. It could hurt jobs and communities.
The Florida House of Representatives has advanced two bills, HB 1221 and HB 7033, that threaten to dismantle the very foundation of Florida's economic powerhouse: the tourism industry. These bills propose significant changes to the state's highly successful Tourist Development Tax (TDT), redirecting its funds from destination promotion to property tax credits. The result would be a devastating blow to local businesses, jobs and communities that rely on tourism to thrive. Tourism is the lifeblood of Florida's economy. The TDT, paid by visitors and not by Floridians, is reinvested in destination promotion efforts that attract even more visitors. This cycle generates jobs, fuels local businesses and supports critical public services. Eliminating TDT funding for this purpose would severely hinder our ability to compete for visitors, leading to long-term economic pain. Additionally, reallocating these dollars to provide property tax relief to property owners diminishes the importance of tourism marketing and promotion across the state. With millions of residential and commercial properties in Florida, a reduction of property taxes amounts to a negligible benefit for individual property owners. In contrast, every Florida household is currently saved $1,910 in taxes per year since tourism is one of the reasons why the Sunshine State remains state tax-free. Tourism in Florida is powerful. Millions of visitors support the livelihoods of countless people across the state. Visitors generate billions in direct spending and contribute significantly to the local economy. Tourism connects communities and creates places where people want to visit, live, work and invest. Opinion: I'm a Canadian who lives in Florida. Don't let tariffs ruin our relationship. If these changes to TDT become law, Florida will lose not only the revenue generated by tourism but also the jobs, beach renovations and much more funded by it. The long-term economic damage will be felt across the state as the tourism industry, a key pillar of Florida's economy, loses its ability to thrive. This is a statewide issue that's important to every tourism destination in Florida, including Palm Beach County, where more than 9.9 million visitors in 2024 supported the livelihoods of approximately 90,000 people. Milton Segarra is president and CEO of Discover The Palm Beaches. This article originally appeared on Palm Beach Post: Florida tourism is vital to our economy. Don't stifle it | Opinion
Yahoo
28-04-2025
- Business
- Yahoo
St. Johns County tourism officials say eliminating tourist councils 'would be devastating'
Earlier this month, Governor Ron DeSantis announced that Florida had reached a milestone in the state's tourism industry to secure "an all-time record 15.5% share of the domestic vacation market in 2024." The Sunshine State even broke its own record by receiving 142.9 million visitors n 2024, a 1.6% increase from 2023. And yet, on April 25, the Florida House under Speaker Daniel Perez, R-Miami, approved HB 7033, a $5.4 billion tax break package, which would eliminate all 62 of Florida's tourist development councils and redirect those funds to reduce property taxes. St. Johns County Reps. Kim Kendall, R-St. Augustine, Sam Greco R-St. Augustine, and Judson Sapp, R-Green Cove Springs, voted for the bill. Emails sent to each representative's office on Monday were not returned by Monday afternoon. Most analysts acknowledge that the House's latest tax-cut provision faces long odds, according to John Kennedy of the USA TODAY Network-Florida. The bill still would need to pass the Senate and survive DeSantis' veto pen. The Florida House has been critical of tourism spending by state and local governments for years, and many state lawmakers and local policymakers have expressed a desire to spend money from the tourism taxes on other priorities. This also comes in a year when DeSantis has pushed hard for property tax relief and even floated the idea of a 2026 ballot initiative to eliminate property taxes entirely. Rep. Wyman Duggan, R-Jacksonville, a sponsor of the TDC cut, said the House plan would put dollars in property owners' pockets fast, according to the USA TODAY Network-Florida report. But the idea of erasing the TDC in America's oldest city has created a fury. St. Johns County's TDC is part of the county's Tourism and Cultural Development Department, which oversees tourism initiatives along with The St. Augustine-Ponte Vedra Visitors and Convention Bureau and the St. Johns Cultural Council. Members of the St. Johns County Tourism Development Council include Chair Irving Kass, who serves as chair, Vice Chair Troy Blevins, St. Augustine Mayor Nancy Sikes-Kline, St. Augustine Beach Mayor Dylan Rumrell, St. Johns County Commission Chair Krista Joseph, along with Regina G. Phillips, Charles Cox, Michael Gordon and Michael Wicks. The council is responsible for producing a tourist development plan that outlines how the proceeds from the 5% Tourist Development Tax are allocated. Kass, owner of St. Augustine's St. George Street Inn and the Bin 39 Wine Bar, told the St. Augustine Record that while the amendment may be well intentioned, eliminating the TDC is not a "smart move." "The TDC is designed to increase a return on investments, basically to self-generate the tax, with decisions that improve the tourist experience," he said. "Eliminating the Tourist Development Council will negatively impact businesses across the board as well as the county's tourism industry, which is the county's largest industry." According to Kass, the county takes in approximately $24 million in revenue from tourist development taxes, also known as bed taxes, collected from overnight stays. Those funds are used to promote tourism, which includes advertising events such as music and food festivals, servicing the St. Augustine Amphitheatre, maintaining fishing piers, improving beach access and supporting beach renourishment projects. Kass said his "quick math calculations" show that if 100% of the $24 million collected annually is applied to property taxes, homeowners would save approximately $75 a year. Kass also said that if money currently used for the county's "five buckets" (marketing, the St. Johns County Cultural Council, the St. Johns County Parks & Recreation Department, event administration and beach renourishment projects) is eliminated, the county commissioners will have to find a "mechanism" to generate the missing funds. "We would have to move money around the table," he said. "The economic impact would be devastating. This is not a sound business decision. TDT money is not generated by residents; it's generated by tourists to serve local businesses." Touting 45 years of industry experience, Kass described the current TDC members as "super qualified" with "extensive experience" in the tourism industry and expressed concern with commissioners making decisions formerly made by the TDC. "Meaning no disrespect, they [the commissioners] don't know what they don't know," he said. "They think they're making good decisions but they're actually making decisions with unintended consequences. So, they don't make smarter decisions. "The Tourism Development Council is better experienced to handle the decision-making process when it comes to tourism," he said. Rumrell, the mayor of St. Augustine Beach, said that while he believes "cooler heads will prevail in Tallahassee," removing the TDC would be a significant loss for the county. "Florida's number one economy is tourism," he said. "It's imperative that we continue to collect TDT tax to stimulate our tourism industry, to create jobs and to allow coastal communities to continue beach renourishment projects." Sikes-Kline, the St. Augustine mayor, said that the city was monitoring the bill. Joseph, the County Commission chair, didn't respond April 28 to a text seeking comment. But Commissioner Sarah Arnold, who previously served on the St. Johns County TDC said the bill, if passed, would be bad news for local businesses. "So many small businesses in St. Johns County rely on the success of the tourism industry," County Commissioner Sarah Arnold said. "I hope our legislators are taking into account the impact that this change will have on small businesses." Michael Diaz, co-founder and CFO of the St. Augustine Distillery, said he was blindsided by the bill and said the elimination of the TDC would be potentially crippling. "If you're going to support jobs, businesses, and industries in Florida, supporting the tourism industry is one of the most effective spends one can make," Diaz said. "The TDC is one of the best uses of tax dollars that's working really well. This is not the place to save money or curtail expenses. "It's more efficient for the tourist development council to produce a professional, crafted and consistent message for St. Augustine as opposed to a bunch of disparate businesses sending out disparate messages and disparate channels," he said. "We have relied on the TDC for the entire 11 years we've been in existence. We like many businesses within the county's tourism industry have greatly benefitted from their services. "If passed, a harmful trickle-down effect would impact the entire city," he said. "The perceived benefit is illusory. I believe that St. Augustine would see a massive decrease in its overall economy." Information from John Kennedy of the USA TODAY Network-Florida was used in this report. This article originally appeared on St. Augustine Record: Bill to eliminate tourism councils raises alarm in St. Johns County
Yahoo
26-04-2025
- Business
- Yahoo
Editorial: Legislature's proposed tax fixes are too much, too soon
By any measure, Florida's tax system is a mess. Independent reviews show it to be fundamentally unfair, with one group awarding the state the dubious honor of having the most regressive tax system in the country. The problems are almost certainly exacerbated by the fact that responsibility for some of Florida's biggest revenue streams is split between state and local governments in a way that makes it almost impossible to untangle the responsibility — and blame — for the most consequential tax-and-spend decisions. So it's not hard to understand the Legislature's desire to improve matters. Unfortunately, many of the proposals floating around this session — especially those that would shift money around in dramatic ways, without the intensive study and opportunities for public input such big changes demand — are too radical to adopt on the fly. There's definitely room for a few modest reforms, based on proposals that have been floating around for years. One key example: giving county governments a little more flexibility on how they spend so-called 'bed taxes.' But the big adjustments should wait for at least a year. That would give state leaders the chance to take their show on the road, explain the proposed changes to Floridians and listen to their input — particularly from local government officials who need time to prepare for major changes. There's little argument that the state's current distribution of tax burden is unfair, but the dubious conclusion that Florida had the most unfair and unbalanced tax system in the country as of 2024 still came as an unwelcome surprise. In its annual 'Who Pays?' index, the Institute for Tax and Economic Policy found that the poorest Floridians — those in the bottom 20% of household incomes, existing on less than $19,600 a year — paid a staggering 13.2% of their annual income in state and local taxes. Meanwhile, the top 1% forked over less than 3% of their income in taxes. And that calculation doesn't include Florida's loophole-riddled corporate tax structure, which lets national and international corporations with a significant presence in this state get away with paying almost nothing in taxes. That goes a long way toward explaining why Florida ranks so low in per-capita measures of general well-being, including the quality of its schools, access to medical and mental-health care and the condition of its roads and other critical infrastructure. Any major changes would have to take into account the rippling effects on public education, criminal justice, local amenities like parks and libraries and other services people depend on their governments to provide. Both the House and the Senate are proposing big changes to the way taxes are levied in Florida. But they target different revenue streams. The House plan (HB 7033) is arguably the more radical; it would slash the state's 6% sales tax rate to 5.25% — a move that, by itself, would carve $5.6 billion from the state's annual revenues — and force similar cuts in other taxes including the tax on electricity and commercial rents. It would also divert tax money raised for specific purposes into property tax relief. There may be some good ideas in the House bill, but it's too much to accomplish in a single sweeping move. The state's tax structure is too fragile and riddled with loopholes to revise on a whim, with little opportunity for public debate or input. The same can be said of the Senate plan, though it's not as radical as the House version. The Senate wants to carve a gaping exemption into Florida's sales-tax stream, eliminating sales tax on clothing sales under $75. By itself, this exemption would drain nearly $900 million from state coffers. The Senate also wants to spend more than $600 million on a cut to vehicle registration fees and put $237 million toward two months' worth of tax breaks on a wide variety of recreational expenses, including concert tickets, gym memberships and camping supplies. There are other one-time breaks in the Senate tax package (SB 7034) including familiar back-to-school and emergency-preparedness tax 'holidays.' It also endorses a proposed constitutional amendment for the 2026 ballot that would ask voters whether to reduce or eliminate property taxes, the main funding source for local governments and public schools. That's a dangerous idea, because it would isolate a major change from its natural ramifications. One provision in the Senate tax package deserves separate consideration. Sen. Carlos Guillermo Smith, D-Orlando, has offered a proposal to give local governments flexibility in the way they spend the tourism development tax (TDT) and his proposal is currently included in the overall Senate tax package. The tax, which can be up to 7% on the cost of hotel rooms and other tourist-driven expenditures, has produced a bounty of unspent funds in areas like Orlando — leading to absurd decisions like last year's agreement to fund $560 million in expansions and renovation of the Orange County Convention Center, already one of the largest facilities of its kind in the nation. Diverting some of that bounty to the area's overburdened road network makes sense, especially since the most tourism-dominated parts of the county already have some of the county's worst traffic congestion. Other counties might not benefit as much as Orange County, but if more flexibility works well here, it could guide decisions in other parts of the state. We also like a proposal to study Florida's property-tax structure ahead of the proposed 2026 vote, but there's legitimate concern that such a study could be easily manipulated. And as with the House bill, we think any proposal that causes billions of dollars in upheaval deserves a more measured, thoughtful approach. It's notable that both House and Senate bills are already riddled with special-interest loopholes — breaks on guns, bicycles, mobile-home sales and other limited-benefit expenses among them. Nobody is claiming that Florida's tax structure is perfect — far from it. But there's no imperative to rush. Time, and thoughtful study, could provide critical insight that would help Florida craft a fairer, more balanced and stable tax structure. That time costs the state nothing, and ensures that Floridians have an ample opportunity to review various proposals and speak up about their own spending priorities. This state's residents deserve that consideration. The Orlando Sentinel Editorial Board consists of Opinion Editor Krys Fluker, Executive Editor Roger Simmons and Viewpoints Editor Jay Reddick. Contact us at insight@
Yahoo
26-04-2025
- Business
- Yahoo
Bills pass in the House that threaten Tourism Development Tax and the community
BAY COUNTY, Fla. (WMBB) – Despite local lawmakers speaking out against House Bill 7033 and House Bill 1221, they both passed in the House Friday morning. Representative Griff Griffitts took to Facebook to publicly share his opposition. HB Bill 1221 passed in a 62-45 vote. HB 7033 passed with a 78-29 vote. The reality of the bills' impacts on the tourism development tax continues to weigh on tourism organizations. 'The House of Representatives voted to put forward two bills. One was a local option sales tax bill. And the second one was the overall House tax package that included provisions that pretty much wipe out, first of all, councils as they exist now. I mean, TDCs would be abandoned or dissolved by the end of the year,' Bay County TDC Executive Director Dan Rowe said. You can see the TDC's impact in Bay County just about everywhere you look, especially in recent months. With projects such as updating Econofina Creek amenities, the beach re-nourishment project in Mexico Beach, extra funding for Panama City Beach Police to battle spring break, the Ed Hickey, ADA beach access, and countless others. Tarpon Dock Bridge Update All of the projects have enhanced the Bay County experience for visitors and locals alike. 'It's about the 30,000 people in Bay County that are employed either directly or indirectly by the tourism industry. I mean it's their livelihoods, it's their businesses. I mean, we're trying to make sure we're doing our part just to keep, you know, Panama City Beach and Bay County's best foot forward. So that we will continue to attract people on a year-round basis because getting people here throughout the year really does, you know, helps us to stabilize our local economy and employment also allows us to attract new things,' Rowe said. The TDC is also involved in the turtle monitoring efforts, the Publix Sports Park, public safety, and countless signature events. While the push from legislation includes redirecting tourism development taxes to offset residents' property taxes, residents could still face other financial burdens. 'There will be future storm events, and beach renourishment helps us protect against those. So that was on the backs of our local residents, you know, people across Bay County, whether or not just people living on the beach, but everywhere in Bay County, would be forced to pay that bill. The same with lifeguards, the same with a lot of other things,' Rowe said. House bills do need companion Senate bills to move along. Rowe says he has faith in the Senate. 'But the one that did pass this, you know, the House is, you know, the tax package in the Senate has a tax package. It does not include, you know, the devastating impacts to the tourist development tax that the House did. And so when they pass the final version of their tax package, then you know, both the Senate President and the Speaker of the House will appoint, you know, representatives to negotiate the deal,' Rowe added. Until the House and Senate agree on the tax package bill, nothing is certain. Which is why it's important to monitor the legislative process and voice any concerns to your senators and representatives. The legislative session was originally intended to end next Friday. It's still unclear how much longer the session will last, but with the potential economic impacts these bills would have on Bay County, we will continue to provide updates. Learn more about HB 7033 and HB 1221. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
