Abstract
We examine the spatial, county-level incidence of changes to tourist tax rates in Florida from 2003 to 2014. Florida allows county-level visitor tax increments to fund various tourism-related initiatives. As a result, there is considerable variation in visitor tax rates across counties and across time. Using a dynamic spatial autoregressive panel model, we show that direct and indirect effects of room tax rate changes on taxable hotel room expenditures are relatively small and largely exported to visitors. Because these taxes have recently been allowed for funding Major League Baseball Spring Training facilities, we also test whether these facilities impact hotel tax collections. We find no measurable effects of a small number of facility relocations on hotel spending in the new or previous home-counties. We also discuss the importance of considering contiguous spillovers and the use of cluster-robust standard errors in panel estimation of tax incidence for tourism.
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