Judge rules Tampa taxing hotel visitors illegally
A circuit court judge has ruled that a hotel room surcharge — collected by the city of Tampa on top of its existing maxed-out bed tax — is an “illegal tax,” according to a spokesperson for the Florida House, which sued the city over the $1.50-per-night fee two years ago.
The House Speaker at the time, Republican Richard Corcoran of Land O’Lakes, set out to stop the city from collecting a special “marketing fee” on each room night after a WTSP-TV report spotlighted the controversial charges, created by Tampa in 2017 to generate new revenue for tourism marketing. State law prohibits a city or county from taxing hotel guests more than 5 or 6 cents on the dollar, depending on the county’s annual tourism figures.
Attorneys from GrayRobinson, representing the city of Tampa, argued the case lacked merit, for the $1.50-per-night charge was a “fee,” and not a “tax.” They also accused Corcoran of assaulting “home rule powers.” But the case proceeded for the last two years, even as Corcoran was succeeded as Speaker by Rep. José Oliva, a Miami Lakes Republican.
Judge Rex Barbus announced the state’s motion for summary judgment would be approved last Thursday, according to the House spokesperson. The state successfully argued that a per-night fee on hotel stays was a charge on an activity that varies over time, and therefore, a tax that was never authorized by the Legislature.
Read more: https://floridapolitics.com/archives/309165-judge-rules-tampa-taxing-hotel-visitors-illegally