Why wait until October for Florida’s gas tax holiday? Data doesn’t support tourism claim

TAMPA, Fla. — After weeks of declining gas prices, Florida drivers are once again paying more to fill up.

The jump at the pump follows the recent decision by OPEC and its allies to cut oil production by two million barrels per day. The price hike comes just as the state suspended the 25-cent tax on each gallon of gas for the month of October.

The one-month $200 million gas tax holiday is being paid for with federal stimulus money.

Ned Bowman with the Florida Petroleum Marketers Association argues drivers are still reaping the benefits of the tax break despite higher prices.

"Consumers are still saving money," Bowman said. "Prices could be 25 cents higher right now."

But why did Florida wait until October to implement its gas tax holiday?

Lawmakers delayed implementation arguing October is the month when the fewest tourists are in the state.

VERIFY asked to see the data supporting the decision to delay implementation when other states did not wait to impose such tax holidays.

THE QUESTION

Lawmakers delayed implementation of the gas tax holiday until October, arguing it’s the month with the fewest tourists on the road. Does data support that?

THE SOURCES

• Florida Office of Economic & Demographic Research (EDR) monthly revenue reports
• Florida Department of Revenue local government tax receipts
• U.S. Energy Information Administration (EIA) monthly motor fuel consumption data
• Katie Betta, spokesperson Florida Senate
• Leslie Pearsall, spokesperson Visit Florida

THE ANSWER

Available state data analyzed by VERIFY shows tourism remains relatively consistent year-round, while September tends to be the month when the least tax revenue from tourism is collected.

WHAT WE FOUND

When Florida’s one-month gas tax holiday was approved, state GOP lawmakers said they chose October because it’s when the fewest tourists are in the state, guaranteeing the most savings for Floridians.

Critics pointed out it also falls one month before an election.

Tourism data

Visit Florida, the state’s official tourism agency, does not track monthly visitation estimates, spokesperson Lesli Pearsall told VERIFY. The agency does, however, produce quarterly estimates.

Historically, the fourth quarter (October-December), is Florida's lowest-performing quarter for visitation, she said.

Visit Florida’s data shows 30.8 million tourists visited Florida during the fourth quarter of 2019, the year before the COVID-19 pandemic impacted the nation. Comparatively, 35.5 million tourists visited during the highest first quarter (January-March).

Pearsall did provide month-by-month tourism-related metrics for hotel and rental demand, car usage and flight capacity. In the three years before the pandemic, demand was typically lowest in September. In fact, between 2017 and 2019, hotel and vacation rental demand consistently saw a slight uptick from September to October before decreasing again in November.

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Tourism tax revenue

In choosing October to implement the gas tax holiday, state lawmakers reviewed monthly tax revenue reports, which are comprised of six categories, Senate spokesperson Katie Betta told VERIFY.

Tourism is one category in the report.

“October has been the lowest month for the last decade,” Betta told VERIFY in an email. “Which is the time period our staff evaluated.”

VERIFY analyzed the same monthly reports but found the data reflects activity from the prior month. “October collections reflect activity that largely occurred in September,” this report reads.

According to data analyzed by VERIFY from the Florida Department of Revenue, tourist development tax revenue collected by local governments between 2011 and 2019, on average, was lowest in September.

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Gas consumption

Available data from the U.S. Energy Information Administration (EIA) shows monthly motor fuel consumption in the state.

VERIFY analyzed EIA data between 2011 and 2019 and found, on average, September was the lowest month for fuel consumption in the state, followed by January.