A new initiative to increase Orange County’s hotel tax rates to fund infrastructure and transportation projects is gaining traction in Florida, per the Orlando Business Journal.

Rosen Hotels & Resorts CEO Frank Santos and government consultant Angel de la Portilla have proposed a new revenue stream that would support tourism while making things easier for local governments.

As part of the proposed increase, Orange County’s tourist development tax (TDT) would go from 6% to as high as 10% — an amount that could generate an estimated $60 million per percentage point annually. This additional revenue could fund transportation projects, including the proposed SunRail weekend service, which would cost $22.7 million to $26.3 million per year.

Proposal leaders Santos and De la Portilla are suggesting a new category called the tourist transportation tax (TTT). This would be a supplemental rate that counties could adopt to directly invest in infrastructure within designated zones.

Florida residents would also be exempt from paying the additional tax when staying at hotels or vacation rentals.

Under the proposal, counties could opt to add 1-2% to their already existing TDT rate. New funds could then be earmarked exclusively for transportation and infrastructure projects in areas like International Drive and US-192.

The current TDT structure requires 40% of funds collected to be spent on tourism promotion before they can be allocated to other tourism-related projects. The new tax would not alter that requirement, but would give more flexibility to address other needs.

“Florida’s tourism success story has entered a new chapter — one where investment in infrastructure must keep pace with marketing and promotion. TDT has proven enormously effective at funding advertising and attractions that draw visitors, but it has so far neglected the less glamorous yet crucial needs of transportation, roads, and facilities in our tourism corridors,” the proposal said.

De la Portilla said the proposal is designed “to spark a statewide conversation, with potential benefits for other tourism-driven counties” in Florida. It would require Florida Legislature approval, and advocates are hoping to make it a legislative priority for Orange County.

UCF hospitality professor and Orange County Commissioner Kelly Semrad supported the increase during an August 26th meeting and noted the TDT rate hasn’t changed since 2006. Semrad said an increase would be aligned with Gov. DeSantis’ call to “tax those that don’t live amongst us, implying tourists.”

As for how this will impact Disney World hotels and others in the area, that remains to be seen.

We’ll be on the lookout for more updates on this potential hotel tax increase and what it could mean for you. In the meantime, make sure you stay tuned to the Disney Food Blog for the latest travel and tourism news.

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