Leesburg commissioners unanimously oppose House Bill 1221 limiting local-option taxes

The Leesburg City Commission on April 28 adopted a resolution expressing strong opposition to House Bill 1221, a proposal that city staff said would restrict the use of local-option taxes, including tourist development taxes and discretionary local sales surtax.

City Manager Hal, speaking to the commission after the resolution was introduced, said the bill “seeks to limit local option taxes,” and warned that the change would affect revenues cities use for capital projects. “Those revenues are significant for our capital improvement projects,” Hal said, citing past local projects funded with tourist development dollars.

The resolution was prompted by concern that the proposal — which Hal said was moving through the Legislature — could shift or eliminate funding streams local governments rely on. Hal said the measure touches the “penny sales tax” and local-option gas tax and specifically targets tourist development tax revenues collected on hotel stays and distributed by local tourism development councils.

Commissioners discussed next steps, and Hal encouraged officials and residents to contact state lawmakers. He noted his office has been coordinating with the city’s lobbyist and local delegation on related legislation. The commission voted by roll call with Commissioner Peterson, Commissioner Berry, Commissioner Connell and Mayor Alan Reisman voting yes; there were no recorded no votes or abstentions.

The resolution will be forwarded to the governor’s office and the city’s state legislative delegation, according to staff.

Why it matters: Leesburg officials said local-option tax revenues fund roads, parks and tourism projects; changes at the state level could restrict the city’s ability to finance capital improvements.

What’s next: Staff said they will continue to monitor the bill’s progress and maintain communication with the city’s lobbyist and local representatives.