Florida Keys Tourist Development Council Latest

Florida Keys Bed Tax Update: HB 1221 Withdrawn, HB 7033 Delayed, TDC Future Holds Strategic Promise

Monroe County’s tourism sector just scored several significant wins in the ongoing bed-tax debate, preserving the $61.4 million Tourist Development Tax (TDT) lifeline that fuels Key West’s marketing, events, and hurricane recovery efforts. On May 3, 2025, House Bill 1221—which proposed the dissolution of all local Tourist Development Councils and imposed a mandatory sunset clause on county bed taxes—was withdrawn from Senate consideration. This victory preserves voter-approved funding streams and keeps Monroe County’s experienced tourism infrastructure intact.

House Bill 7033, a broader tax-package bill that remains under discussion, has been shelved in the Senate Appropriations Committee with no hearing scheduled, giving tourism-dependent counties room to negotiate potential carve-outs or a phased implementation. Senator Ana Maria Rodriguez of Key West has raised concerns about the impact on local tourism, joining a growing bipartisan coalition of counties from across Florida including Tampa Bay, Destin, and Orlando.

In response, Monroe County’s tourism community has rapidly mobilized an advocacy network, building political momentum through grassroots engagement and stakeholder unity. Kara Franker’s May 6 “State of Tourism” livestream successfully rallied hundreds of local business owners and workers in just two days. The campaign also accelerated long-overdue TDC transparency reforms, including real-time dashboards tracking ad performance and grant outcomes.

If elements of HB 7033 move forward, the Keys are poised to adapt. Smarter digital marketing strategies, influencer collaborations, and high-performing user-generated content—such as the 4 million Instagram tags for #KeyWest—can help stretch reduced budgets. Partnerships with VISIT FLORIDA remain fully funded and present another valuable marketing channel.

From a housing perspective, the bill offers potential relief, including the elimination of a commercial-lease sales tax, which could reduce operating costs for small businesses. Lawmakers are also exploring a new TDT-funded disaster reserve, allowing Monroe County to earmark 10% of collections for hurricane recovery and emergency messaging—a forward-thinking move as NOAA forecasts an above-average storm season.

Despite a slight dip in average visitor stays to 5.6 nights, traveler spending has hit a new record at $1,327 per person, with high-value guests continuing to rise. This financial resilience, combined with renewed political unity and legislative breathing room, offers a bright outlook for the future of tourism in the Florida Keys.