New bill might entice Canadians to stay longer in Florida, benefiting Brevard economy

Legislation introduced in the Senate Sept. 19 would make it easier for Canadians to stay longer in the U.S.

Supporters say the bill will have big benefits for Florida's economy.

The bill, introduced by U.S. Sen. Marco Rubio and U.S. Sen. Rick Scott, would allow Canadians to spend two months longer in the U.S. without paying income taxes. Currently Canadians who spend more than six months are considered U.S. residents and are subject to income tax.

Scott and Rubio's bill would allow them to spend eight months before paying income tax as long as they rent or own property and are over the age of 50. Canadians who stay in hotels or motels wouldn't count.

Florida is a popular destination for Canadian tourists. Canadians accounted for 3.5 million of the 126 million visitors to Florida in 2018, according to a news release from Marco Rubio.

More:Brevard tourism chief unveils $7M plan to market Space Coast to attract more visitors

At the entrance of Ameri-Cana Resorts, a co-op retirement community in Rockledge, a Canadian flag flies. The community was founded by a Canadian, and 40 of its 417 residents are Canadian, board member Diane Henze said. But those 40 residents are gone for the summer.

"None of them are here right now," she said. "They're not back until maybe next month."

It doesn't matter to Americana Resorts if those Canadians stay longer this winter ⁠— residents at the co-op own their land and pay maintenance fees year round. It might matter to the county and state's economy, though.

“Tourism is a crucial part of Florida’s booming economy, creating and supporting thousands of jobs all across the Sunshine State,” Rubio said in the release. “This bill will be a huge boost to our state’s economy by allowing the millions of Canadian snowbirds who visit Florida each year to stay two months longer.”

More:Tourism brings benefits, vibrancy to Florida’s economy | Opinion

The Canadian Snowbird Association, a nonprofit that seeks to protect the privileges of Canadian travelers, endorses the bill, according to the release.

“This bill is a win-win for people on both sides of the border," Karen Huestis, President of the Canadian Snowbird Association, said in the release.

Peter Cranis, executive director of the Space Coast Office of Tourism, said he doesn't know how much revenue the tourism board brings in from Canadians visiting the county. According to the Canadian Embassy, Canadians who visit Florida contribute more than $6.5 billion each year to the state’s economy and 3.5 million Canadians visited Florida in 2018.

But the change would include a trade-off for the county: Though the county will benefit from the money snowbirds spend at local businesses, the tourism development council may wind up receiving less tax money, Cranis said. 

The tourism council receives tax money on rent when someone stays six months or less. If some Canadians extend their stay from six months to eight months, they won't pay any of the tourist tax and the tourism council will actually receive less money.

Canadian visitors will still pay sales tax when they shop in the county, and local businesses will benefit from their purchases. Cranis said those benefits to the county are greater than the reduction in taxes.

"The possibility of Canadians spending two more months in the county certainly outweighs any value we're losing in taxes," Cranis said.

Bailey Gallion is the business and development reporter for FLORIDA TODAY. Contact Gallion at bgallion@floridatoday.com or 321-292-0669.