Pinellas County's tourism tax revenue is surging toward a record year, but whether that money can help close a $30 million budget gap depends on voters and state lawmakers.

The stakes are high for Clearwater. City documents show the Pinellas County Property Appraiser's Office projects about $12.3 million less in revenue the first year and nearly $8 million less the second year if Amendment 3 passes in November, Tampa Bay 28 reported. Ad-valorem taxes make up almost 50% of Clearwater's general fund budget.

The Pinellas Tourist Development Council discussed the connection between booming tourism revenue and the budget crisis at its Aug. 19 meeting, St. Pete Catalyst reported. The county collected about $8.6 million in tourist development taxes in June, nearly 15% more than June 2025. Through June, gross collections for the fiscal year totaled nearly $79.8 million.

The county is on pace to surpass its previous annual record for the 6% tax on short-term lodging, according to Visit St. Pete-Clearwater. The spring peak season alone generated $36.2 million in tourist development tax collections, the highest ever for that period.

Florida law currently limits how tourist development tax dollars can be spent. Pinellas County Commissioner Chris Latvala told the TDC that could change if voters approve Amendment 3, a property-tax overhaul on the Nov. 3 ballot.

"If Amendment 3 does pass, I think that I would not be surprised if the Legislature allows counties to use TDC funding in a much more flexible manner than currently is allowed," Latvala said.

Amendment 3 would let qualifying homeowners exempt more of their property value from non-school taxes. It would also cut the annual assessment cap on non-homestead property from 10% to 5%. The measure needs 60% support to pass and would take effect Jan. 1, 2027.

The county already faces a General Fund deficit of more than $30 million heading into fiscal year 2027, driven by unfunded mandates, declining sales tax revenue and inflation, according to a budget presentation by County Administrator Barry Burton. The proposed millage rate holds steady at 4.5423 mills, unchanged from the current year.

The budget squeeze is producing friction with the tourism industry. TDC member Dylan Hubbard warned that proposed parking fee increases at county beaches could hurt the visitors generating that record tax revenue. He pointed to Fort De Soto, where the county is considering replacing its $6 daily parking charge with a $3.50 hourly rate.

Hubbard said Fort De Soto's family-oriented visitors are not the same affluent clientele paying premium hourly rates at Clearwater Beach, and that pricing them out could directly harm tourism.

Commissioners have discussed placing a $15 daily cap on the proposed hourly rate. County administrators estimate the parking, boat-ramp and annual-pass increases could generate about $2.77 million in additional annual revenue.

Russ Kimball, CEO of the Sheraton Sand Key Resort on Clearwater Beach and a TDC member, described a potential "push pull" for the hotel industry over how tourist development taxes should be used if lawmakers grant more flexibility. He said the industry wants a seat at the table.

TDC Chair Dave Eggers, who also chairs the Pinellas County Commission, said the council will monitor the issue monthly as the November election approaches.

The Board of County Commissioners holds a budget work session Thursday, Sept. 3, followed by public hearings Sept. 10 and Sept. 24. Residents can attend or submit comments at those hearings before the fiscal year begins Oct. 1.