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Florida House Passes Plan to Divert Hotel Tax Revenue to Property Tax Relief

The bill mandates 75% of tourist tax funds be redirected to homeowner savings starting in 2026, sparking economic concerns from tourism-dependent regions.

Visitors walk among storefronts at Disney Springs on Tuesday, Feb. 25, 2025. (Stephen M. Dowell/Orlando Sentinel)
A big sign outside the Florida Capitol in early March promoted Palm Beach County as a popular destination.

Overview

  • The Florida House approved HB 1221 by a 62-45 vote, requiring 75% of hotel tax revenue to be used for property tax relief starting in 2026.
  • Tourism leaders warn the reallocation could undermine Florida's $1.5 billion tourism economy, affecting marketing, infrastructure, and local jobs.
  • Proponents argue the plan could save homeowners in Orange County an average of $700 if applied to permanent residences, though savings vary by county.
  • Critics highlight that the potential property tax savings, estimated at $68.78 per person in Broward County, may not outweigh the economic risks to tourism.
  • The bill now moves to the Florida Senate, where opposition from key lawmakers suggests a challenging path forward for final approval.