Whether it’s on something we buy, sell, or own, we all pay some form of taxes. There’s one type of tax that puts the primary financial burden on tourists visiting Florida rather than the people who live here. Money generated by the Tourist Development Tax, or TDT, comes from a tax on hotel stays and other short-term rentals.
In Orange County, it’s 6% of every lodging bill, totaling more than $350 million in revenue last year. According to the county government, Orange collects the largest share of TDT of any other county in Florida.
There’s debate over where that money goes. When Orange County’s Tourist Development Tax was enacted in 1978 and approved by voters, the ordinance stated TDT could fund the convention center, tourism promotion, and sports facilities. Florida state law does not allow it to be used for schools, public safety and general government services in Orange County.
This week, Florida Citrus Sports CEO Steve Hogan asked the Tourist Development Tax Sports Incentive Committee in Orange County for at least $10 million. It’s to entice the Jacksonville Jaguars to play their home games at Camping World Stadium in Orlando during the 2027 NFL season while their home stadium an hour north of Palm Coast is renovated. Hogan told the task force that dollar amount could go up to $11 million if the Jags make the playoffs and play in the post season in Central Florida.
Based on research from other NFL teams, third party data, and info from the Jaguars, Florida Citrus Sports put conservative estimates at some $20 million coming back to the region in economic impact per game.
This week, the Tourist Development Tax Sports Incentive Committee granted the funding request to lure the Jaguars to Orlando. Ultimately, the Orange County Board of Commissioners approves TDT uses. On the NFL side, the Jags will make a decision in the coming weeks, and a formal vote is scheduled for the May NFL owners meeting.
In 2023, Orange County Mayor Jerry Demings established a Tourist Development Tax Citizens Advisory Task Force to get more community input on how the money is used. Eric Gray, Executive Director of Christian Service Center for Central Florida, was appointed to serve on that citizens panel. He joins Engage to explain how he thinks TDT funds could be used to offset burdens shouldered by Central Florida residents.
Democratic State Senator Carlos Guillermo Smith filed bills this legislative session focused on cutting TDT funding to Visit Orlando and loosening restrictions on how TDT can be spent. Senator Smith joins Engage to discuss his proposals to modernize the way government thinks about Tourist Development Tax spending.
We asked Visit Orlando to talk about the estimates for return on investment. They thanked us for reaching out and passed on our request for an interview.
