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Local Option Tourist Development Act

Local Option Tourist Development Act. Presentation to the 2016 Orange County CRC TDT Procedures / Priorities Work Group September 1, 2015. Orange County Attorney’s Office. Presentation Overview. Tourist Development Tax Tourist Development Council Tourist Development Plan

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Local Option Tourist Development Act

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  1. Local Option Tourist Development Act Presentation to the 2016 Orange County CRC TDT Procedures / Priorities Work Group September 1, 2015 Orange County Attorney’s Office

  2. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Concerns and Legal Issues with Proposed Charter Amendment

  3. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Concerns and Legal Issues with Proposed Charter Amendment

  4. Tourist Development Tax • Local Option Tourist Development Act • § 125.0104, Fla. Stat. (“The Act”) • Authorizes any Florida county to levy tourist development tax (“TDT”) within its boundaries • Tax imposed on rental or lease of living quarters or accommodations in hotels, motels, apartments, RV parks, condominiums, etc. for a term of 6 months or less • TDT, often referred to as “bed tax,” is levied on total consideration paid for occupancy

  5. Tourist Development Tax (Cont.) The Act requires: • TDT levied by ordinance enacted by BCC • Ordinance to include County’s tourist development plan • TDT Ordinance be approved in referendum election • BCC to establish and appoint members of tourist development council (“TDC”)

  6. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Concerns and Legal Issues with Proposed Charter Amendment

  7. Tourist Development Council The Act requires BCC to appoint: • Nine (9) members: • One (1) county official • Two (2) city officials • Six (6) members of tourist industry, of which, 3-4 are hotel or motel operators • Members serve staggered, four (4) year terms

  8. Tourist Development Council (Cont.) • Prepares County’s tourist development plan • Plan required to set forth: • Net TDT revenue anticipated in first 24 months; • TDT tax district; and • List prioritizing proposed uses of TDT revenue by specific project or special use • Plan submitted to BCC for approval

  9. Tourist Development Council (Cont.) After BCC’s initial adoption of Plan: • TDC periodically makes recommendations to BCC • Effective operation of special projects; or • Uses of TDT revenue • TDC continually reviews expenditures of TDT revenues and regularly receives expenditure reports from BCC • Reports unauthorized expenditures to BCC

  10. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Concerns and Legal Issues with Proposed Charter Amendment

  11. Tourist Development Plan • BCC required to adopt TDC’s proposed Plan • Plan included in Ordinance initially levying TDT • Amendments to Plan require ordinance enacted by BCC • Affirmative vote of a majority plus one (1) of BCC required to amend Plan • Amendments to Plan at sole discretion of BCC • TDC recommendation or approval not required

  12. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Concerns and Legal Issues with Proposed Charter Amendment

  13. Use of TDT Revenue • The Act strictly governs use of TDT revenue • Uses not expressly authorized by statute are expressly prohibited • At the sole discretion of BCC

  14. Use of TDT Revenue (Cont.) The Act authorizes use of TDT revenue: • To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate or promote: • Publicly owned convention centers, sports stadiums/arenas, coliseums, or auditoriums within County • Aquariums or museums that are publicly owned or owned and operated by not-for-profit organizations and open to the public • To promote zoological parks that are publicly owned and operated or owned and operated by not-for-profit organizations and open to public

  15. Use of TDT Revenue (Cont.) • To promote and advertise tourism in Florida, nationally, and internationally • To fund convention bureaus, tourist bureaus, tourist information centers and news bureaus • To finance beach park facilities or beach improvement, maintenance, renourishment, restoration, and erosion control • To be pledged to secure and liquidate revenue bonds issued by County to fund certain TDT priorities authorized by statute

  16. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Concerns and Legal Issues with Proposed Charter Amendment

  17. Orange County TDT • Orange County citizens approved initial 2% TDT in 1978 • Increased in 1986, 1989, 1995 and 2006 • Currently, TDT is at 6% • Certain percentages of TDT revenue dedicated to specific uses: • Payment of debt service • Professional sports franchise facilities • Promotion of tourism

  18. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Concerns and Legal Issues with Proposed Charter Amendment

  19. Orange County Tourist Development Plan • Tourist Development Plan, §25-140 Orange County Code • Plan currently contains 23 priorities: • Convention Center operations, maintenance and promotion • Convention Center construction and phased expansion projects • Construction of Orlando Arena • Orlando/Orange County Convention and Visitor's Bureau, Inc. (d/b/a “Visit Orlando”) • Expansion of Citrus Bowl • Promotion and advertisement of tourism in Florida, nationally and internationally • Central Florida Sports Commission

  20. Orange County Tourist Development Plan (Cont.) • United Arts of Central Florida • Florida Classic football game • Auditoriums or museums used primarily for arts and culture • Association to Preserve the Eatonville Community, Inc. • Tangerine Sports Association, Inc. • Performing arts center • NCAA championship competitions or college conference athletic championships

  21. Presentation Overview • Tourist Development Tax • Tourist Development Council • Tourist Development Plan • Use of TDT Revenue • Orange County TDT • Orange County Tourist Development Plan • Orange County Tourist Development Plan Priorities • Concerns and Legal Issues with Proposed Charter Amendment

  22. Concerns & Legal Issues With Proposed Charter Amendment • 67 counties in Florida; 20 charter counties • No Florida charter county regulates use of TDT revenue or provides for TDT procedures through its charter • Flagler County – resolutions set forth TDT policies • Tourist Development Special Event Grant Policy Resolution • Public Tourism Infrastructure Project Grant Policy Resolution • Hamilton County – 10-page grant application • Effect of TDT charter amendment would be logistically impractical given complex charter amendment process

  23. Concerns & Legal Issues WithProposed Charter Amendment (Cont.) • Flagler and Hamilton Counties are significantly dissimilar to Orange County • Flagler County TDT annual revenue estimated at $1.7 Million • Hamilton County TDT annual revenue estimated at $27,000 • Both Flagler and Hamilton County act as own visitor’s bureau (cf. Visit Orlando) • Neither county has an established convention center requiring continuous maintenance and improvements

  24. Concerns & Legal Issues WithProposed Charter Amendment (Cont.) • Proposed Charter amendment requires the approval of the TDC in order for a project or event to be funded with TDT revenue • Conflicts with the Act: • Tourist Development Plan only amended by supermajority vote of BCC (§ 125.0104(4)(d), Fla. Stat.) • No recommendation or approval of TDC required to amend Plan (AGO 92-34) • When statute provides method to do something, it is a prohibition against its being done in any other way • Amendment would undermine the statutory authority granted to the County’s elected officials to amend Plan

  25. Local Option Tourist Development Act Presentation to the 2016 Orange County CRC TDT Procedures / Priorities Work Group September 1, 2015 Orange County Attorney’s Office

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