TALLAHASSEE, Fla. – Florida counties may soon see a major shift in how they spend tourism dollars.

Lawmakers are one step closer to redirecting much of the “bed tax,” which is usually used to attract tourists, and putting it toward lowering property taxes.

The House voted 78-29 last week to approve HB 7033 , which will be considered during negotiations between the House and Senate on a new state budget.

The bill would direct money raised through the bed tax -- a tax on hotel stays -- to be shifted to offset property taxes starting in 2026.

Before approving the bill on Friday, the House made a change that would allow 25% of the so-called “bed tax” money to continue to be used for tourism marketing.

Among those supporting the bill in the House is Ways & Means Chairman Wyman Duggan, R-Jacksonville.

“We have a local, current affordability crisis,” Duggan said. “We want to provide as much as possible toward local-government property tax relief as we, the Legislature, can do legislatively this year.”

Local impacts

In 2024, Jacksonville welcomed over 8 million visitors, bringing in an estimated $7.4 billion to the local economy, according to data from the Economic Impact and Tracking Report, which was commissioned by Visit Jacksonville and funded by the Duval County Tourist Development Council.

Nearly 5 million hotel rooms were sold in Jacksonville during the 2024 fiscal year, generating nearly $32 million in bed tax revenue.

This tourism also supported nearly 57,000 jobs and generated almost $3 billion in wages.

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“We are closely working with our advocates in Tallahassee and staying in touch about the proposed legislation. At this time, Visit Jacksonville is continuing our efforts to promote Jacksonville as a destination for vacations, meetings, and conventions.”

Statewide, tourism-industry officials have argued that the House tax plan and another bill ( HB 1221 ) backed Friday by the House would lead to Florida losing visitors, resulting in fewer jobs and revenue.

“These proposed measures would have a profound effect on the tourism industry in Florida, devastating how tourism is promoted and supported,” the Florida Attractions Association said in a news release.

Budget battle

The tourism bill was part of the $5.008 billion tax package approved Friday by the House. The overall House tax package is built on a proposal to permanently reduce the state’s sales-tax rate from 6% to 5.25% and to reduce a commercial lease tax.

The House and Senate have not been able to reach initial agreements needed to begin formal budget negotiations, with the tax package remaining a big hurdle.

The Senate, which hasn’t sought the change in tourism-marketing dollars, put forward a $1.83 billion proposal ( SB 7034 ) that includes eliminating sales taxes on clothing and shoes that cost $75 or less.

It also would provide a one-time credit on annual vehicle-registration fees and offer a series of sales-tax “holidays,” including a new one that would last more than three months on hunting equipment.