Sine Die - 2026 Florida Legislative Session Report
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After another eventful season of legislative session, complete with a full Regular Session and three Special Sessions to discuss Congressional Redistricting, the Budget, and Property Taxes, the Florida Legislature officially adjourned sine die on June 3, 2026.
Governor DeSantis still has to sign the General Appropriations Act (HB 5001E), the annual tax package (HB 7031E), and a series of related budget bills before the beginning of the next fiscal year on July 1st.
In total, nearly 1,700 bills were filed this Session, with only 192 passing.
In the end, CFHLA had an extremely successful Legislative Session as we accomplished 6 of our 11 Legislative Priorities.
Thank you to all of our CFHLA members who took action throughout the legislative session to support our 2026 Legislative Priorities.
Here are some of the BIG CFHLA WINS!
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No Tourist Development Tax (TDT) changes were included in the tax package, and all TDT policy bills died during the legislative session. This was a first in several years, that no measure that affecting TDT, came close to passing.
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The Legislature provided $13.3 billion for the Department of Transportation, which fully funds the Transportation Work Program at $11.56 billion, as well as the Moving Florida Forward Infrastructure Initiative (MFF) at $1.8 billion.
Additionally, the Florida Legislature approved a $114.5 billion budget for the 2026 - 2027 fiscal year that will take effect on July 1, 2026.
One important point to note, the FY 2026 - 2027 budget will be nearly $600 million less than the current year's spending plan. This marks another year in a row that the state budget has decreased from the previous year’s spending level.
Lastly, the 2026 Tax Package introduced a range of tax relief measures and policy reforms, including extending Child Care Tax Credits for businesses, updates to taxation provisions of the Live Local Act to promote workforce housing opportunities, and transparency for homeownership.
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On behalf of the CFHLA, we are once again grateful to the members of the Florida Legislature, our Central Florida Hospitality and Tourism Partners, and our CFHLA Members who supported us throughout the Legislative Session. It is because of your continued collaboration and support that we were able to achieve these big wins for the tourism and hospitality industry.
Click on the link below to read more about CFHLA's Legislative Priorities and how they ended up at the end of the 2026 Florida Legislative Session. This report that includes the complete outcome on each of our eleven priorities that were extremely important to the hospitality and tourism industry at both the state and local level.
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Tourist Development Tax (TDT) - DIED
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From the onset of the 2026 Florida Legislative Session, CFHLA strongly opposed several bills that would have made changes to the Tourist Development Tax (TDT). Each of these bills were successfully defeated this session, which included:
SB 446: Large-Scale County Destination Marketing Organizations by Senator Smith
SB 454 / HB 6007: Tourist Development Taxes by Senator Smith / Rep. Eskamani
SB 456: Tourist Development Tax by Senator Smith
SB 458: Tourist Development Tax by Senator Smith
SB 976: Tourist Development Tax by Senator Smith
Also, the annual tax packages from both the House and the Senate did not include any provisions impacting TDT revenue, a first in several years. However, with the recent special session on property taxes and the potential need to look for alternative local revenue sources, TDT remains a potential target for future discussions about reform in near future.
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Open Carry Clarification - DIED
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In September 2025, a court ruling paved the way for open carry of firearms in Florida. This ruling has led to questions about where it is acceptable to carry a firearm openly throughout the state, leading to clarifying statements having to be made by businesses and law enforcement officials.
Throughout the Legislative Session, CFHLA supported any efforts by the Legislature to update statutes to reflect the open carry ruling and clarify that private property owners, including hotels, restaurants, theme parks, and other privately owned venues, retain the right to prohibit weapons of any kind, including firearms, on their property.
Unfortunately, there were no substantive conversations regarding open carry of firearms throughout the 2026 Florida Legislative Session.
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Increased Funding for Transportation and
Infrastructure Projects - PASSED
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From the onset of the 2026 Florida Legislative Session, CFHLA supported an increase in the funding of essential transportation and infrastructure projects across the Central Florida region (excluding using TDT funds). This included supporting the Governor's proposed budget of $14.3 billion for the Florida Department of Transportation Work Program which would fund the Moving Florida Forward Initiative and expand our region's intermodal transportation system through projects including the Sunshine Corridor, connecting SunRail to MCO, and the tourism corridor.
At conclusion of the Legislative Session, the Legislature appropriated $13.3 billion for the Florida Department of Transportation. This appropriation fully funds the Transportation Work Program at $11.56 billion, as well as the Moving Florida Forward Infrastructure Initiative (MFF) at $1.8 billion.
These transportation and infrastructure projects will help address issues related to safety, congestion relief, quality of life, resiliency, and the modernization of some of the state’s most traveled corridors. In so doing, the Legislature agreed to carry forward any unexpended dollars dedicated to MFF into this new fiscal year to ensure that any programmed projects continue receiving funding.
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VISIT FLORIDA Funding - PASSED
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From the start of the 2026 Florida Legislative Session, CFHLA supported the Governor's proposed budget, which included $80 million in annual funding for VISIT FLORIDA (same from FY 2025-2026). Funding for VISIT FLORIDA ensures that our state continues to be top of mind as the leading vacation destination in the country. Additionally, CFHLA supported extending VISIT FLORIDA’s sunset date to facilitate strategic planning and marketing for the near and long term.
CFHLA also opposed any efforts to replace VISIT FLORIDA funding from the state budget with county-level TDT revenues. Local TDT revenues are committed to vital projects and organizations that generate visitation - providing local economic development and job creation.
In the end, no proposal moved forward that would consider replacing VISIT FLORIDA funding from the state budget with county-level TDT revenues. Additionally, the House and Senate agreed to once again allocate $80 million in this year’s budget, to support VISIT FLORIDA. However, its sunset date was not extended. This allocation is the same as last year's budget and reinforces the Legislature’s ongoing commitment to support VISIT FLORIDA’s tourism marketing efforts.
We are grateful to both the Florida House and Senate for recognizing the importance of VISIT FLORIDA to the state’s tourism industry, and this will help ensure Florida continues to be top of mind as the leading vacation destination.
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Additional Education Funding for Hospitality/Culinary Programs at our Local Schools, Colleges, and Universities – PASSED
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From the onset of the 2026 Florida Legislative Session, CFHLA supported additional funding for our hospitality and culinary programs at our local high schools, as well as the increased per-student funding at Valencia College, Seminole State College, and the University of Central Florida. Currently, Valencia College and Seminole State College are among the lowest per-student funding institutions in the state.
This is why it was so imperative that CFHLA supported the Florida College System Council of Presidents' allocation request of significant, new, recurring funding, distributed through the formula agreed to by the Florida College System. This included a proposed budget of $1.9 billion for the Florida College System, a $100 million increase from FY 2025-2026. This funding would have helped to recruit and retain the best faculty and invest in rapid credentialing workforce development programs that increase capacity within our region (including new and existing advanced accelerated programs).
In the end, the Florida Legislature agreed to fund $1.71 billion for the Florida College System Program fund in the state budget, which included a $30 million increase from the FY 2025-2026.
Of the $30 million increase in state funding, Valencia College received over $4.7 million, and Seminole State College received over $1.5 million. Additionally, there were additional funds appropriated for the Work Florida Student Success Incentive Fund that supports college strategies and initiatives that align career education programs with statewide and regional workforce demands and high-paying job opportunities.
This includes the following additional allocations for FY 2026 - 2027:
- Seminole State College of Florida: $782,336
- Valencia College: $1,808,130
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Statewide Regulation of Vacation Rentals
and Advertising Platforms - DIED
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While vacation home rentals have long been available in Florida, the option to list available units online through advertising platforms has caused this lodging sector to explode by more than 50,000 units across the Central Florida region. Over the past five years, CFHLA has sought to update Florida’s statutes in order to ensure that all of Florida’s public lodging establishments provide safe and quality experiences for their guests and communities - without infringing on the rights of local governments or unduly burdening vacation rental owners and rental platforms.
Additionally, Florida also ranks as the third-highest state for human trafficking cases in the United States. Each year, thousands are trafficked in the United States, and traffickers often rely on businesses to sustain their operations. Recently, traffickers have begun to utilize vacation home rentals for their criminal activity. With millions of visitors coming to our state each year, Florida’s hospitality industry must serve as a leader in the fight to combat human trafficking, and it is critical that our industry continues to raise awareness through education and training.
Throughout the 2026 Florida Legislative Session, there were two bills, later combined into one bill, that would have addressed some of these safety concerns. Unfortunately, neither of the following bills made it across the finish line at the conclusion of the Legislative Session. We look forward to bringing these issues back in the 2027 Florida Legislative Session.
HB 79/SB 658: Water Safety Requirements for the Rental of Residential Property, by Rep. Maggard/Sen. Burgess - Died in Housing, Agriculture & Tourism
SB 608: Vacation Rentals, by Sen. Smith – Combined into SB 658, Died in House Messages
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Workforce Housing - PASSED
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From the onset of the 2026 Florida Legislative Session, CFHLA supported the continued full funding of the Sadowski Fund, as Central Florida continues to have a dire need for more reliable and affordable housing options.
This included CFHLA's support for the Governor's proposed budget, which would have fully funded affordable and workforce housing programs. This included $72.9 million for the State Apartment Incentive Loan (SAIL) Program and $170.8 million for the State Housing Initiatives Partnership Program (SHIP), and $50 million for the fifth year of the Hometown Heroes Housing Program, which helps make homeownership more affordable for eligible frontline community workers and other Florida families.
Additionally, CFHLA also urged the Legislature to continue encouraging and empowering local county and municipal governments to implement innovative approaches to affordable housing development (excluding using TDT funds).
In the end, the Florida Legislature funded the Florida State Housing Initiatives Partnership (SHIP) program at $165.7 million, and the State Apartment Incentive Loan (SAIL) program at $70.77 million in the FY 2026-2027 budget.
This funding is in addition to the nonrecurring $50 million from the General Revenue Fund to the Florida Housing Finance Corporation for Fiscal Year 2025-2026 for the Florida Hometown Heroes Housing program. The unexpended balance of funds on June 30, 2026, shall revert and be appropriated to the corporation for the same purpose for Fiscal Year 2026-2027.
Furthermore, the Florida Legislature approved SB 1548 / HB 1389, sponsored by Senator Calatayud and Representative Redondo, which made a series of changes to the Live Local Act. These changes included:
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Authorized multifamily and mixed-use residential as allowable uses on property owned by a county, municipality, school district, and a religious institution, provided certain criteria are satisfied;
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Prohibited local governments from restricting the height of a proposed development through the use of setbacks or stepbacks;
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Specified that farms and farm operations are not considered “commercial uses” or “industrial uses” for purposes of the Act;
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Exempted certain areas from the requirements of the Act;
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Removed the ability of local governments to “opt out” of exempting certain property used for affordable housing from ad valorem taxation;
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Waived sovereign immunity for the state and any governmental entity if prohibited discrimination in a land use decision or the permitting of a development occurs, and clarified that discrimination based on the source of financing for an affordable housing development is prohibited; and
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Required local governments to adopt an ordinance to allow accessory dwelling units by right in certain areas, subject to certain exceptions and requirements, and allows local governments to provide density bonus incentives to certain landowners.
Thank you to Senator Calatayud and Representative Redondo for your leadership on this important proposal that helps to address our workforce housing challenges in the State of Florida.
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Throughout the 2026 Florida Legislative Session, CFHLA supported any efforts that would ensure any property tax changes do not lead to an increase in commercial property taxes and they provide a fair treatment for all property owners.
Initially, the Florida House filed several pieces of legislation during the 2026 Regular Legislative Session. Ultimately, after weeks of committee discussion and debate, the House passed HJR 203 by Representative Miller, which increased the second homestead exemption for ad valorem taxes that currently applies to the assessed value of homestead properties between $50,000 and $75,000, adjusted annually for inflation, by adding $100,000 per year to this exemption for ten years. Beginning in 2037, the entire assessed value of homestead properties would be exempt from all ad valorem taxes other than school taxes. The joint resolution also proposed a new Section 7 of Article VIII of the Florida Constitution to prohibit local governments from reducing funding for services provided by law enforcement, firefighters, and first responders below a specified base year. That legislation did not pass out of the Senate before the Regular Session concluded in March.
Then in June, Governor DeSantis called a Special Session dedicated to the elimination of Property Taxes. In the end, the Florida Legislature approved two bills related to property taxes including:
HJR 1-F / SJR 2-F: Save our Homes from Excessive Property Taxes by Representative Overdorf and Senator Avila
- Reduces the assessment limitation for non-homestead residential and non-residential property from 10 percent to 5 percent;
- Real property owned by persons who maintained permanent residence as of December 31, 2026, and have established or will establish homestead are eligible for the following exemption:
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Beginning on January 1, 2027, up to $150,000 of the assessed value.
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Beginning on January 1, 2028, up to $250,000 of the assessed value. The exemption value is adjusted annually for positive inflation growth beginning January 1, 2029.
- Real property owned by persons who maintain permanent residence on or after January 1, 2027, and establish homestead are eligible for the following exemption:
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Beginning January 1, 2027, up to $50,000 of assessed value. The exemption value is adjusted annually for positive inflation growth beginning January 1, 2028.
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Beginning with the 5th year of the exemption, such person may be exempted up to the amount of the exemption available to a person who maintained homestead on or before December 31, 2026.
HB 3-F / SB 4-F: Property Tax Administration by Representative Overdorf and Senator Avila
- Requires the Department of Revenue to establish a uniform notice of a proposed constitutional amendment, if such amendment revises Article VII, sections 4, 6, and 9 of the State Constitution. The notice must conform to formatting and content requirements specified in the bill and include a link and QR code to a website provided by the Department of Revenue for the purpose of estimating the ad valorem tax savings that the proposed amendment may have on each homestead property.
These bills were passed by the Legislature on June 3, 2026, and the language from HJR 1-F / SJR 2-F will be on the ballot for consideration in November. The measure will now require over 60% of the voters to pass and go into full effect.
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Interchange Fees on Sales Tax - DIED
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Over the past several years, the cost of labor, goods, and equipment continues to rise, while margins continue to remain tight. Florida merchants pay over $288 million annually in interchange fees on the sales taxes and bed taxes they are required to collect. Credit card companies and banks should not be permitted to profit from merchants’ required performance of a public duty. Interchange fees should not be paid on sales taxes collected by Florida merchants.
From the onset of the 2026 Florida Legislative Session, CFHLA supported prohibiting the collection of interchange on sales tax, which would have provided relief to businesses, which will in turn would have provided relief to consumers.
Unfortunately, there were no substantive conversations regarding interchange fees on sales tax throughout the Legislative Session.
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During the 2026 Florida Legislative Session, CFHLA supported the American Resort Development Association’s 2026 legislative priority which would have clarified conflicts between Florida’s Timeshare Act and Florida’s Community Association Manager statutes.
CFHLA supported legislation by Representative Nix and Senator Gruters which would have clarified these conflicts. Unfortunately, HB 465/SB 822 died on the House Floor at the conclusion of the Legislative Session.
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Commercial Property Insurance Reform - PASSED
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Over the past few years, the cost of insurance has increased significantly – not just for residents, but also for Florida businesses. The cost increases for commercial payers are often so large that it impacts customers, guests, and employees. As the Florida Legislature continued its work to make insurance more affordable for residential and individual customers, CFHLA also supported any legislative efforts that would be aimed at reducing the cost of commercial insurance in Florida as well.
Ultimately, CFHLA supported SB 1028 by Senator Gruters (HB 943 by Representative Redondo), which would require Citizens Property Insurance Corporation (Citizens) to amend its plan of operation and establish a commercial lines clearinghouse for soliciting offers of coverage from authorized insurers and a separate commercial lines clearinghouse for soliciting offers of coverage from approved surplus lines insurers.
The bill also provided detailed requirements for the new commercial lines clearinghouse for surplus lines insurance offers by January 1, 2027. Other than this authorization and language providing that current Citizens eligibility standards would apply to offers from authorized insurers, the bill did not create new standards for establishing a commercial lines clearinghouse for authorized insurers, though many of the existing standards for the personal lines clearinghouse would apply to the commercial lines clearinghouse for authorized insurers.
Lastly, the bill provided an exception to the requirement that Citizens must establish the commercial lines clearinghouses by providing that Citizens need not establish any component of a commercial lines clearinghouse for which there is insufficient commercial support.
Thank you to Senator Gruters and Representative Redondo for your leadership on these important proposals that will help Florida’s businesses continue to thrive.
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Other Issues/Bills CFHLA Monitored Throughout the Legislative Session
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Regulation of Cash Businesses SB 1074, by Senator Gaetz (HB 951 by Representatives McFarland and Overdorf), which has been signed by the Governor, established rounding procedures for sales tax dealers who, due to the discontinuation of the penny, are unable to provide exact change. Under the bill, cash transactions may be rounded to the nearest nickel after the calculation of tax is accounted for. The bill confirmed that rounding cash transactions in this manner does not alter the amount of tax owed. The bill also provides rounding provisions for cash payments made to secondary metals recyclers. Additionally, the bill provided that the Florida Deceptive and Unfair Trade Practices Act does not apply to the rounding of consumer sales to the nearest nickel when the penny is no longer in production.
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Tort Reform Representative McFarland and Senator Brodeur filed legislation (HB 145/SB 1366) that would have increased the caps on the recovery of awards against a governmental entity. For a claim that accrues between October 1, 2026, and September 30, 2031, the cap would be increased to $500,000 per person - from $200,000 - and the cap for multiple claims or judgments arising out of the same incident would be increased to $1,000,000 - from $300,000. For claims accruing on or after October 1, 2031, the limits would be raised to $600,000 and $1,200,000, respectively. The limitations of liability in effect on the date the claim accrues apply to the claim.
The bill also permitted a subdivision of the state to settle a claim or judgment in excess of the caps without requiring the subdivision to seek further action by the Legislature. Lastly, the bill prohibited an insurance policy, beginning October 1, 2026, from conditioning the payment of benefits or the coverage of liability on the enactment of a claim bill. This legislation passed and is now awaiting the Governor’s signature.
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Employment Eligibility Representative Jacques filed legislation (HB 197) to expand Florida’s E-Verify employment eligibility verification requirements so that all private employers are required to use the E-Verify system. This would ensure that every new hire is legally authorized to work in the United States, beginning on July 1, 2026. This legislation did not pass during the 2026 Florida Legislative Session.
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Upcoming CFHLA PAC/PC Meeting
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Upcoming CFHLA Governmental Affairs Committee Meeting
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The next CFHLA Governmental Affairs Committee Meeting will be on Wednesday, August 26, 2026, from 12:00 p.m. – 1:30 p.m. The meeting will be held at the GrayRobinson Offices.
If you are interested in learning more about the CFHLA PAC/PC and/or the CFHLA Governmental Affairs Committee, please contact CFHLA Government Affairs Manager Zack Brodersen at zack.brodersen@cfhla.org.
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CFHLA MEMBERS - Please consider making a small donation of $30 via the link below to the CFHLA PAC. This suggested donation was included on your annual dues invoice and all contributions help CFHLA expand its efforts to support Hospitality-Friendly candidates who are running for local and state offices throughout the 2026 election cycle. Throughout the 2025 Election Cycle, five (5) CFHLA PAC endorsed candidates were elected into office. This was an 83% success rate.
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About CFHLA
6675 Westwood Blvd #210, Orlando, FL 32821
The mission of the Central Florida Hotel and Lodging Association is to represent the Central Florida Hospitality Industry, by setting the standard of excellence through advocacy, collaboration, education, recognition, and service.
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