While Throwing Money at Disney, DeSantis Vetoes Budget Item That Would Have Made Your Trip to Florida Cheaper

Putting together a state budget can be complicated, especially when every member of the Florida Legislature has a pet project that needs funding. With so many hands out, deciding what gets cut and what stays can be difficult.

Related: Banks and DeSantis Team Up So You Pay More Every Time You Use Your Credit Card at Disney World

In this past legislative session, Florida Governor Ron DeSantis vetoed $57 million from the state budget earmarked for “Legislative support services.” However, part of the money was meant for a study that every credit card company wanted removed from the budget, and the companies found a new ally in Governor DeSantis. 

Background

First, some background. When you use your credit card, companies like Visa, Mastercard, and American Express charge merchants between two and three percent for every transaction. So, say your Disney vacation costs $5,000; Visa receives $150. It may not seem like a lot, but think about how often people use their credit cards daily. It adds up.

But that cost is just the base price of your package. It doesn’t include the six percent state tax. That adds another $300 to your purchase. So, the total cost is $5,300.

In Florida, credit card companies are allowed to charge not just the package price but also the sales tax. That adds $18 in fees to the credit card companies. This also doesn’t include the “other” fees that Disney adds to your trip. Again, it doesn’t seem like a lot, but it adds up.

Vendors end up having to pay that fee, or they pass it on to you, and your vacation package gets more expensive. Retailers have been lobbying the Florida Legislature to eliminate those extra fees. Still, credit card companies are spreading money around to ensure they can keep those transaction fees as high as possible.

The Veto

Earlier in the legislative session, a proposed bill would have eliminated the swipe fees on sales tax. The credit card companies were successfully able to get that bill shot down.

However, the Florida Legislature included a study to see how much money vendors and consumers would save if they eliminated the swipe fees on sales tax. Mind you, this was just a study, not legislative action.

So, once the study was included in the $57 million, the credit card companies turned to Gov DeSantis. He used the veto pen to eliminate the entire amount since he could just eliminate one line item from the budget.

Ron DeSantis just sided with lobbyists for Visa, Mastercard and their banks by vetoing funding for a study by state economists on how to stop credit card companies and banks from charging swipe fees on sales taxes.

— Jason Garcia (@Jason_Garcia) June 12, 2024

Some of that money was due to go to Florida lawmakers to help fund legislative support services. Still, it was also used for things like the lobbyist registration office, which records every lobbyist meeting with all Florida lawmakers.

So, why are the credit card companies so interested in keeping the swipe fees on sales tax? In 2023, they made more than $300 million in swipe fees on sales tax just in Florida.

At a time when most families are going into debt to pay for their trip to Central Florida’s theme parks, even the slightest bit of relief would help the average family create a better vacation.

For now, though, those fees will remain. So, while Gov DeSantis hands money from the budget to help Disney World expand, the average person heading to Florida must pay more.

How much debt have you incurred to take a trip to Central Florida?