HB 7033 remains a threat to Florida’s tourism industry leading into the budget conference process during the week of May 12, 2025.

The Florida Legislature failed to complete their Constitutionally-mandated task of creating an annual state budget and jointly agreed to "extend" the Regular Session nearly one month to June 6, 2025. After initially being more than $4.4 billion apart in their spending plans, the House and Senate leaders reached an agreement late Friday on the total amount of the FY 2025-26 budget. Each budget silo will receive allocations ahead of the budget conference process, where conferees will iron out spending differences. Once spending differences have been reconciled, the final budget will go through a 72-hour "cooling off" period, before both chambers vote on the final proposal.

Many bills did not make it across the finish line this session and died at 11:59 p.m. on Friday. 1,982 bills were filed for consideration during the 2025 Legislative Session, however, only 254 bills (13%) passed both chambers and have a chance at becoming law. Governor Ron DeSantis has already signed 19 bills into law and is waiting to be presented with the rest from the Legislature. For comparison, 25 more bills were filed in the 2025 Legislative Session compared to the 2024 Legislative Session, but 71 less bills were passed by the Legislature during the 2025 Legislative Session.

HB 7033 is included in the bills that are under consideration during the extended session and will be a starting point for House and Senate negotiations on the FY 2025-26 tax package. Although the Senate’s tax proposal (SB 7034) did not contain the same harmful provisions, HB 7033 would drastically alter the allowable use of Tourist Development Tax (TDT) revenues. Specifically, the bill mandates that counties divert at least 75% of “adjusted collections” from the TDT toward ad valorem (property) tax relief beginning in FY 2026–2027 and would allow the remaining TDT revenue to be used for any general purpose. These adjusted collections refer to TDT funds not already committed to contracts, projects, or debt service. In addition to redirecting funds away from tourism promotion and facilities, the bill would dissolve all local Tourist Development Councils (TDCs) by the end of the year and require a public referendum on TDT usage every eight years as a mechanism to continue the property tax benefit. While the Senate has indicated little interest in advancing such sweeping changes to TDT usage, HB 7033 remains a threat to Florida’s tourism industry leading into the budget conference process during the week of May 12, 2025.