JACKSONVILLE, Fla. — Jacksonville residents and visitors to the area could soon see the price of their drinks and meals at restaurants and hotels increase slightly if the proposed legislation clears the finish line.
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Jacksonville city council members will soon consider asking the Florida Legislature to give the council the ability to levy a new tax on meals and beverages sold at restaurants and lodging establishments.
The proposal calls for a 2% tax on food and beverage sales at hotels and motels, which would go to fund tourism promotion for the city and a one percent tax on food and beverage purchases at all food establishments that serve alcohol to fund services for the homeless and victims of domestic violence.
”Homelessness is improving, but there’s always more capacity needs,” said Allan DeVault, Executive Director of Build Up Downtown.
DeVault explained the idea is modeled after a similar tax levied in Miami-Dade County.”One thing that Miami-Dade has done, especially in the past decade or so, is focus a lot on housing and one of the things this could provide is housing for the homeless or those that are about to become homeless,” said DeVault.
But Councilmember Raul Arias (R-District 11), who owns local restaurants, had some immediate concerns with the idea of implementing a new tax on the hospitality industry.”We just came out of COVID. Literally just came out of COVID. We’re still struggling with inflation, labor, you know, wages. And now imposing another tax, that’s going to be a passthrough for the consumers, it still indirectly affects our industry,” said Arias.
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Another issue he raised is the fact Miami is a much larger tourism destination than Jacksonville, which means it would likely be residents, rather than visitors, bearing the brunt of the cost in Duval.
Arias hasn’t taken an official position on the bill, and he met with the bill sponsor Tuesday to talk through his concerns.DeVault noted, even if the resolution is passed and the legislature gives the green light, the council would still have to implement the tax.
It took three years to make it happen in Miami-Dade, but it now generates $40 million a year for the county.
”If we were to see 25 percent of that, which we think is possible, it would go a long way toward helping those who are in need,” said DeVault.
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