Miami– Two controversial bills advanced in the Florida Congress lit the alarms in Miami-Dade, a county whose economy throbbs to the rhythm of tourism.
The legislative proposals HB 1221 and HB 7033 seek to redirect a significant portion of the Tourism Development Tax (TDT) – known as the “hotel tax” – from the tourist promotion to the relief of the property tax for residents and other purposes.
Local leaders, such as Julissa Kepner, president of the Bureau of Bureau of Conventions and Tourism of the Great Miami (GMCVB), warned about a possible “economic cliff” if these measures become law.
Proposals
The Nucleus of HB 1221 proposes that, as of 2026, 75% of the DTT funds are allocated to property tax reimbursements, leaving only 25% at the discretion of the counties.
Meanwhile, HB 7033 raises the elimination of the requirement of allocating funds to tourism promotion. In this way, the counties would no longer be obliged to spend at least 40% of the TDT income on advertising campaigns or tourism promotion.
In addition, it contemplates the dissolution of the Tourism Development Councils (TDC) before the end of 2025 and severely restricts the future use of these funds for marketing strategies.
The defenders argue that HB 1221 grants direct fiscal relief to the Floridans and greater local control over income, prioritizing the needs of residents on the promotion of an already consolidated destination.
Reaction and possible damages
However, Kepner refuted the budding standard after considering it “very negative” for the interests of tourism in Miami-Dade.
“It is very important to understand that,” he emphasizes, “these taxes (…) are paid by the tourist, the resident does not pay.”
Kepner explained that these funds, generated by visitors, are precisely those that allow financing not only the promotion of destiny through the GMCVB, but also to support local art and entertainment entities, vital for the attractiveness of the region.
The economic magnitude at stake for Miami-Dade would be considerable. Tourism directly holds more than 200,000 jobs in the county, from hotel workers to Uber drivers and restaurant personnel.
This is a “of the most important machines in the economy” local, according to Kepner.
GMCVB data indicate that each dollar invested in tourist marketing generates $ 63 return and that visitors contributed $ 11 billion in salaries and more than $ 2 billion in local and state taxes only in 2023.
A critical point of debate is the real benefit versus the perceived for residents. While the proposal seeks to offer fiscal relief, analysis cited in GMCVB documents estimate that the reallocation of the DTT in Miami-Dade would represent an average savings of just $ 60 per resident.
This drastically contrasts with the more than $ 2,200 in annual tax savings that, according to the same bureau, each home currently receives thanks to the income generated by the tourism industry that this law could weaken.
Competence
Kepner also put an imminent loss of competitiveness in context. In this sense, he referred to the need to compete with destinations such as Las Vegas, Los Angeles and even the Caribbean, who continue to invest strongly in attracting visitors and global conventions.
He described the funds of the DTT as the “gasoline for the economy”, essential to maintain the international brand of Miami and ensure events that require dedicated budgets and incentives.
Greater impact
The negative impact would not be limited to general promotion. The dissolution of the TDC, Kepner stressed, also “cut the opportunity” to smaller municipalities within Miami-Dade that lack their own resources to promote their local attractions, such as theaters or parks.
In addition, he recalled how DTT funds were crucial during the pandemic, allowing investing $ 5 million in promoting open spaces and accelerating the return to the work of thousands of local employees.
While the HB 1221 bill awaits its eventual debate in the Senate of Florida, the Miami-Dade tourism industry and leaders such as KEPner intensify their efforts to “educate” legislators about the possible consequences.
The tension resides between a promise of immediate fiscal relief, although modest, and the risk of dismantling an economic engine that has proven to be fundamental for the prosperity and resilience of the county.
Las Américas Diario You will address this topic with greater depth in our printed edition.
