Earlier this month, Governor Ron DeSantis announced that Florida had reached a milestone in the state’s tourism industry to secure “an all-time record 15.5% share of the domestic vacation market in 2024.”
The Sunshine State even broke its own record by receiving 142.9 million visitors n 2024, a 1.6% increase from 2023.
And yet, on April 25, the Florida House under Speaker Daniel Perez, R-Miami, approved HB 7033, a $5.4 billion tax break package, which would eliminate all 62 of Florida’s tourist development councils and redirect those funds to reduce property taxes.
St. Johns County Reps. Kim Kendall, R-St. Augustine, Sam Greco R-St. Augustine, and Judson Sapp, R-Green Cove Springs, voted for the bill. Emails sent to each representative’s office on Monday were not returned by Monday afternoon.
Most analysts acknowledge that the House’s latest tax-cut provision faces long odds, according to John Kennedy of the USA TODAY Network-Florida. The bill still would need to pass the Senate and survive DeSantis’ veto pen.
The Florida House has been critical of tourism spending by state and local governments for years, and many state lawmakers and local policymakers have expressed a desire to spend money from the tourism taxes on other priorities.
This also comes in a year when DeSantis has pushed hard for property tax relief and even floated the idea of a 2026 ballot initiative to eliminate property taxes entirely. Rep. Wyman Duggan, R-Jacksonville, a sponsor of the TDC cut, said the House plan would put dollars in property owners’ pockets fast, according to the USA TODAY Network-Florida report.
But the idea of erasing the TDC in America’s oldest city has created a fury.
‘Designed to increase return on investment’
St. Johns County’s TDC is part of the county’s Tourism and Cultural Development Department, which oversees tourism initiatives along with The St. Augustine-Ponte Vedra Visitors and Convention Bureau and the St. Johns Cultural Council.
Members of the St. Johns County Tourism Development Council include Chair Irving Kass, who serves as chair, Vice Chair Troy Blevins, St. Augustine Mayor Nancy Sikes-Kline, St. Augustine Beach Mayor Dylan Rumrell, St. Johns County Commission Chair Krista Joseph, along with Regina G. Phillips, Charles Cox, Michael Gordon and Michael Wicks.
The council is responsible for producing a tourist development plan that outlines how the proceeds from the 5% Tourist Development Tax are allocated.
Kass, owner of St. Augustine’s St. George Street Inn and the Bin 39 Wine Bar, told the St. Augustine Record that while the amendment may be well intentioned, eliminating the TDC is not a “smart move.”
“The TDC is designed to increase a return on investments, basically to self-generate the tax, with decisions that improve the tourist experience,” he said. “Eliminating the Tourist Development Council will negatively impact businesses across the board as well as the county’s tourism industry, which is the county’s largest industry.”
According to Kass, the county takes in approximately $24 million in revenue from tourist development taxes, also known as bed taxes, collected from overnight stays. Those funds are used to promote tourism, which includes advertising events such as music and food festivals, servicing the St. Augustine Amphitheatre, maintaining fishing piers, improving beach access and supporting beach renourishment projects.
Kass said his “quick math calculations” show that if 100% of the $24 million collected annually is applied to property taxes, homeowners would save approximately $75 a year.
Kass also said that if money currently used for the county’s “five buckets” (marketing, the St. Johns County Cultural Council, the St. Johns County Parks & Recreation Department, event administration and beach renourishment projects) is eliminated, the county commissioners will have to find a “mechanism” to generate the missing funds.
“We would have to move money around the table,” he said. “The economic impact would be devastating. This is not a sound business decision. TDT money is not generated by residents; it’s generated by tourists to serve local businesses.”
‘Unintended consequences’
Touting 45 years of industry experience, Kass described the current TDC members as “super qualified” with “extensive experience” in the tourism industry and expressed concern with commissioners making decisions formerly made by the TDC.
“Meaning no disrespect, they [the commissioners] don’t know what they don’t know,” he said. “They think they’re making good decisions but they’re actually making decisions with unintended consequences. So, they don’t make smarter decisions.
“The Tourism Development Council is better experienced to handle the decision-making process when it comes to tourism,” he said.
Rumrell, the mayor of St. Augustine Beach, said that while he believes “cooler heads will prevail in Tallahassee,” removing the TDC would be a significant loss for the county.
“Florida’s number one economy is tourism,” he said. “It’s imperative that we continue to collect TDT tax to stimulate our tourism industry, to create jobs and to allow coastal communities to continue beach renourishment projects.”
Sikes-Kline, the St. Augustine mayor, said that the city was monitoring the bill.
Joseph, the County Commission chair, didn’t respond April 28 to a text seeking comment. But Commissioner Sarah Arnold, who previously served on the St. Johns County TDC said the bill, if passed, would be bad news for local businesses.
“So many small businesses in St. Johns County rely on the success of the tourism industry,” County Commissioner Sarah Arnold said. “I hope our legislators are taking into account the impact that this change will have on small businesses.”
‘Not the place to save money’
Michael Diaz, co-founder and CFO of the St. Augustine Distillery, said he was blindsided by the bill and said the elimination of the TDC would be potentially crippling.
“If you’re going to support jobs, businesses, and industries in Florida, supporting the tourism industry is one of the most effective spends one can make,” Diaz said. “The TDC is one of the best uses of tax dollars that’s working really well. This is not the place to save money or curtail expenses.
“It’s more efficient for the tourist development council to produce a professional, crafted and consistent message for St. Augustine as opposed to a bunch of disparate businesses sending out disparate messages and disparate channels,” he said. “We have relied on the TDC for the entire 11 years we’ve been in existence. We like many businesses within the county’s tourism industry have greatly benefitted from their services.
“If passed, a harmful trickle-down effect would impact the entire city,” he said. “The perceived benefit is illusory. I believe that St. Augustine would see a massive decrease in its overall economy.”
Information from John Kennedy of the USA TODAY Network-Florida was used in this report.
This article originally appeared on St. Augustine Record: Bill to eliminate tourism councils raises alarm in St. Johns County