1. Local Option Tourist Development Act Orange County Attorney’s Office Presentation to the 2016 Orange County CRC TDT Procedures / Priorities Work Group September 1, 2015

2. Presentation Overview Tourist Development Tax Tourist Development Council Tourist Development Plan Use of TDT Revenue Orange County TDT Orange County Tourist Development Plan Concerns and Legal Issues with Proposed Charter Amendment

3. Presentation Overview Tourist Development TaxTourist Development Tax Tourist Development Council Tourist Development Plan Use of TDT Revenue Orange County TDT Orange County Tourist Development Plan Concerns and Legal Issues with Proposed Charter Amendment

4. Tourist Development Tax Local Option Tourist Development Act § 125.0104, Fla. Stat. (“The Act”) Authorizes any Florida county to levy tourist development tax (“TDT”) within its boundaries Tax imposed on rental or lease of living quarters or accommodations in hotels, motels, apartments, RV parks, condominiums, etc. for a term of 6 months or less TDT, often referred to as “bed tax,” is levied on total consideration paid for occupancy

5. Tourist Development Tax (Cont.) The Act requires: TDT levied by ordinance enacted by BCC Ordinance to include County’s tourist development plan TDT Ordinance be approved in referendum election BCC to establish and appoint members of tourist development council (“TDC”)

6. Presentation Overview Tourist Development Tax Tourist Development CouncilTourist Development Council Tourist Development Plan Use of TDT Revenue Orange County TDT Orange County Tourist Development Plan Concerns and Legal Issues with Proposed Charter Amendment

7. Tourist Development Council The Act requires BCC to appoint: Nine (9) members: One (1) county official Two (2) city officials Six (6) members of tourist industry, of which, 3-4 are hotel or motel operators Members serve staggered, four (4) year terms

8. Tourist Development Council (Cont.) Prepares County’s tourist development plan Plan required to set forth: Net TDT revenue anticipated in first 24 months; TDT tax district; and List prioritizing proposed uses of TDT revenue by specific project or special use Plan submitted to BCC for approval

9. After BCC’s initial adoption of Plan: TDC periodically makes recommendations to BCC Effective operation of special projects; or Uses of TDT revenue TDC continually reviews expenditures of TDT revenues and regularly receives expenditure reports from BCC Reports unauthorized expenditures to BCC Tourist Development Council (Cont.)

10. Presentation Overview Tourist Development Tax Tourist Development Council Tourist Development PlanTourist Development Plan Use of TDT Revenue Orange County TDT Orange County Tourist Development Plan Concerns and Legal Issues with Proposed Charter Amendment

11. Tourist Development Plan BCC required to adopt TDC’s proposed Plan Plan included in Ordinance initially levying TDT Amendments to Plan require ordinance enacted by BCC Affirmative vote of a majority plus one (1) of BCC required to amend Plan Amendments to Plan at sole discretion of BCC TDC recommendation or approval not required

12. Presentation Overview Tourist Development Tax Tourist Development Council Tourist Development Plan Use of TDT RevenueUse of TDT Revenue Orange County TDT Orange County Tourist Development Plan Concerns and Legal Issues with Proposed Charter Amendment

13. Use of TDT Revenue The Act strictly governs use of TDT revenue Uses not expressly authorized by statute are expressly prohibited At the sole discretion of BCC

14. The Act authorizes use of TDT revenue: To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate or promote: Publicly owned convention centers, sports stadiums/arenas, coliseums, or auditoriums within County Aquariums or museums that are publicly owned or owned and operated by not-for-profit organizations and open to the public To promote zoological parks that are publicly owned and operated or owned and operated by not-for-profit organizations and open to public Use of TDT Revenue (Cont.)

15. To promote and advertise tourism in Florida, nationally, and internationally To fund convention bureaus, tourist bureaus, tourist information centers and news bureaus To finance beach park facilities or beach improvement, maintenance, renourishment, restoration, and erosion control To be pledged to secure and liquidate revenue bonds issued by County to fund certain TDT priorities authorized by statute Use of TDT Revenue (Cont.)

16. Presentation Overview Tourist Development Tax Tourist Development Council Tourist Development Plan Use of TDT Revenue Orange County TDTOrange County TDT Orange County Tourist Development Plan Concerns and Legal Issues with Proposed Charter Amendment

17. Orange County TDT Orange County citizens approved initial 2% TDT in 1978 Increased in 1986, 1989, 1995 and 2006 Currently, TDT is at 6% Certain percentages of TDT revenue dedicated to specific uses: Payment of debt service Professional sports franchise facilities Promotion of tourism

18. Presentation Overview Tourist Development Tax Tourist Development Council Tourist Development Plan Use of TDT Revenue Orange County TDT Orange County Tourist Development PlanOrange County Tourist Development Plan Concerns and Legal Issues with Proposed Charter Amendment

19. Orange County Tourist Development Plan Tourist Development Plan, § 25-140 Orange County Code Plan currently contains 23 priorities: Convention Center operations, maintenance and promotion Convention Center construction and phased expansion projects Construction of Orlando Arena Orlando/Orange County Convention and Visitor's Bureau, Inc. (d/b/a “Visit Orlando”) Expansion of Citrus Bowl Promotion and advertisement of tourism in Florida, nationally and internationally Central Florida Sports Commission

20. United Arts of Central Florida Florida Classic football game Auditoriums or museums used primarily for arts and culture Association to Preserve the Eatonville Community, Inc. Tangerine Sports Association, Inc. Performing arts center NCAA championship competitions or college conference athletic championships Orange County Tourist Development Plan (Cont.)

21. Presentation Overview Tourist Development Tax Tourist Development Council Tourist Development Plan Use of TDT Revenue Orange County TDT Orange County Tourist Development Plan Orange County Tourist Development Plan Priorities Concerns and Legal Issues with Proposed Charter AmendmentConcerns and Legal Issues with Proposed Charter Amendment

22. Concerns & Legal Issues With Proposed Charter Amendment 67 counties in Florida; 20 charter counties No Florida charter county regulates use of TDT revenue or provides for TDT procedures through its charter Flagler County – resolutions set forth TDT policies Tourist Development Special Event Grant Policy Resolution Public Tourism Infrastructure Project Grant Policy Resolution Hamilton County – 10-page grant application Effect of TDT charter amendment would be logistically impractical given complex charter amendment process

23. Concerns & Legal Issues With Proposed Charter Amendment (Cont.) Flagler and Hamilton Counties are significantly dissimilar to Orange County Flagler County TDT annual revenue estimated at $1.7 Million Hamilton County TDT annual revenue estimated at $27,000 Both Flagler and Hamilton County act as own visitor’s bureau (cf. Visit Orlando) Neither county has an established convention center requiring continuous maintenance and improvements

24. Proposed Charter amendment requires the approval of the TDC in order for a project or event to be funded with TDT revenue Conflicts with the Act: Tourist Development Plan only amended by supermajority vote of BCC (§ 125.0104(4)(d), Fla. Stat.) No recommendation or approval of TDC required to amend Plan (AGO 92-34) When statute provides method to do something, it is a prohibition against its being done in any other way Amendment would undermine the statutory authority granted to the County’s elected officials to amend Plan Concerns & Legal Issues With Proposed Charter Amendment (Cont.)

25. Local Option Tourist Development Act Orange County Attorney’s Office Presentation to the 2016 Orange County CRC TDT Procedures / Priorities Work Group September 1, 2015