- December 15, 2025
Flagler County and each municipality agreed to formally oppose tax exemptions for online travel companies.
The Flagler County Board of County Commissioners met with the School Board and officials from each municipality Tuesday, Dec. 13, for a joint intergovernmental meeting to discuss, among other items, adoption of a resolution formally opposing tax exemptions granted to online booking companies, such as Expedia, Orbitz and Priceline.
“(These companies) have been underpaying a variety of taxes that would come to this community,” said County Attorney Al Hadeed. “What we wanted to do was try, as a joint body, to express … that we are quite adamant in making sure that we receive (the appropriate funds).”
Because out-of-county travel companies purchase rooms wholesale and then resell them online, they’ve been falling through a loophole in state statute, Hadeed explained. If the county forms a united front against exemptions like these in Tallahassee, Hadeed believes a lot of money spent in Flagler would stay in Flagler. Currently, the county receives only about one-third of the funds it should receive from online travel companies by law, he said.
“This is a way to communicate very clearly and forcefully,” Hadeed said of a support resolution, “that (these bills) hurt Florida too much to support them. … (But) there is no requirement to change the law. We’re not asking for a change in the law. We’re asking that the present law be enforced.”
In addition to Flagler, the Northeast Florida Regional Council also recently made opposing online-travel tax exemptions its No. 1 legislative priority, and the Associated Industries of Florida has come out against it, as well.
“It’s not a partisanship issue,” Hadeed said. “It’s about what’s best for Florida.”
All of the municipalities agreed to add a resolution item on upcoming agendas, with the assumption that it will be adopted.
THE STATE SAYS ...
At the Dec. 13 joint intergovernmental meeting, County Attorney Al Hadeed interpreted state statute regarding taxes charged to hoteliers in Florida.
“Every person who rents, leases or lets for consideration any living quarter or accommodating in any hotel … is exercising a privilege which is subject to tax,” he read. “Tax shall be due on the consideration paid for occupancy in the county.”
But that hasn’t been happening, he explained. Since online travel companies buy rooms wholesale and then resell them online, they have not been charged tax on their sales.
“Online booking companies should be charged the full tax,” Hadeed said. “They are not … (And) this is pretty clear. It would be hard to fail on a law exam (deciphering) the meaning of those words.”
