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Bed tax spike in Walton County, Florida [update: 1/2 cent approved]

SHELLY avatar
SHELLYSoWal Insider
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Bed tax spike on table in Walton

SANTA ROSA BEACH - The Walton County Tourist Development has agreed to have more talks about a proposal to raise the bed tax from 4 cents to 5 cents, and will have another meeting to discuss how best to use the more than $2 million in additional revenue.

Walton County commissioners still must approve the bed-tax increase.

Commissioner Sonny Mares, the TDC's executive director, said there was discussion at Wednesday's meeting about using the funds to help pay for a complex that would include sports fields, an amphitheater and performing-arts venue. That has been on the county's wish list for years, Mares said.

But the TDC more likely would join forces with Bay County officials to attract a low-cost airline to the Panama City-Bay County International Airport, which is slated to open next May.

Every cent of the bed tax generates more than $2 million. Mares said he does not expect that number to decline despite the sluggish economy.

Airport officials are pursuing numerous low-cost airlines, and the TDC wants to "be in a position to assist with marketing to draw new business to the area," Mares said.

Every airline has its own strategy to build business, so TDC members must sit down with the airline's marketing team to discuss the best ways to do that, he added.

"Currently, our TDC reaches a 12-hour driving radius, but there's other markets further out that a larger marketing campaign could reach," he added. "Any (airline) carrier would want to bring in new business and open up this area to their business."

Mike Chouri, general manager for Hilton Sandestin Beach Golf Resort & Spa, said any additional bed-tax revenue should be used to help market Northwest Florida. Walton, Okaloosa and Bay counties must reach some kind of agreement because if Walton County uses the added revenue for that purpose, "the other counties have to do the same thing."

The bed tax in Okaloosa County recently went up to 5 cents. Bay County's is now 3 cents but may increase to 5 cents.

Chouri said he is neither for nor against the tax increase.

"It just needs to be made very clear exactly where the money is going to go," he said.

Raising or diverting taxes "is not the answer to everything," Chouri added. "But if we have to do it, we have to do it right."

Lisa Bulriss, sales director at the Marriott Courtyard Sandestin at Grand Boulevard, said she believes a bed-tax increase is a good idea if it would attract more tourists.

"I think if (the bed-tax increase) was to bring in a new air carrier, that would benefit us," she said. "Any way that we can help get more people in ..."

The Walton County bed tax last was raised in 2004 from 3 cents to 4 cents. The TDC used part of the new revenue to help fund beach nourishment.

Mares said that increase initially met some opposition because residents mistakenly thought it would affect their properties.

"It is only a tax for people who come here for short-term stays in hotels or town homes or condominiums who rent them short-term," he said. "And the investment is reinvested in building more business, which is what we need to do now; more business to help restaurants, to help hotels, to help professionally managed properties and individuals who have invested in rental homes and rent them out to tourists."

Bed tax spike on table in Walton | county, tdc, business - News - Northwest Florida Daily News

Replies

94
wrobert avatar
wrobertBeach Fanatic
#2
The TDC leaders need to go and take a course in economics. A 25% tax increase? Come on, this has got to be a joke. As the article says that penny will be taking 2 million dollars out of the private sector and putting into the public sector. 2 million dollars that could be spent in our eateries and bars, at our lodging establishments, in our stores. Economic experts in this area repeatedly use a multiplier of 7 when calculating impact of economic activity. Is this the time to shrink the local economy by 14 million dollars?

I understand that they want to use these dollars to entice Northwest Airlines to come into the area. Maybe it is just me, but I would think that if Northwest Airlines could make any money around here, we would not have to suffer a 14 million dollar economic loss to get them to show up.

Glad I am not trying to rent my vacation home in sowal.
SHELLY avatar
SHELLYSoWal InsiderAuthor
#3
The TDC leaders need to go and take a course in economics. A 25% tax increase? Come on, this has got to be a joke. As the article says that penny will be taking 2 million dollars out of the private sector and putting into the public sector. 2 million dollars that could be spent in our eateries and bars, at our lodging establishments, in our stores. Economic experts in this area repeatedly use a multiplier of 7 when calculating impact of economic activity. Is this the time to shrink the local economy by 14 million dollars?

I understand that they want to use these dollars to entice Northwest Airlines to come into the area. Maybe it is just me, but I would think that if Northwest Airlines could make any money around here, we would not have to suffer a 14 million dollar economic loss to get them to show up.

Glad I am not trying to rent my vacation home in sowal.

Beware when government talks about tax increases in terms of pennies rather than percentages. They're relying heavily on a poor education system so they can work their magic with smoke and mirrors.

.
ShallowsNole avatar
ShallowsNoleBeach Fanatic
#4
:shock:

Oh great. I find out about this on SoWal.com :bang:
Susan HornBeach Fanatic
#5
Wow, I thought when they raised it to 4 percent, they told us that was the highest it would ever go, most the state allowed.

As for the rest, I cannot even get started on what I think of the TDC or I might say something I'll later regret.
TooFarTampa avatar
TooFarTampaSoWal Insider
#6
What a moronic idea. It is not "pennies" when you pay $2K for a week's rent. Owners are alredy lowering rates and giving heavy discounts just to keep their places booked. Guess what? A tax increase would just mean they would have to lower them more. What a nice thank-you to the people who fill the county's coffers with bed taxes and property taxes!

I can't believe that a) a county official is actually talking about what is on a "wish list," and b) they don't understand that in this climate, a tax increase would hurt not help. It will NOT go unnoticed. People are sending me offers to rent my place for 40 or 50 percent off of the rates we just lowered -- rates that already have gone down by about 15-20 percent since 2004. Another example that the branding-obsessed folks at the TDC don't seem to get it.
ShallowsNole avatar
ShallowsNoleBeach Fanatic
#7
The original proposal in late 2003 was to raise it to 5%. However, by the time it went before the BCC in early 2004, it had been decided that 4% would be more palatable at the time.

I'm still reeling that I read it first on SoWal. :blink:
wrobert avatar
wrobertBeach Fanatic
#8
The original proposal in late 2003 was to raise it to 5%. However, by the time it went before the BCC in early 2004, it had been decided that 4% would be more palatable at the time.

I'm still reeling that I read it first on SoWal. :blink:


Let us put this in the proper context.

The original proposal was to raise it 66% in 2003. By the time it was actually raised it only went up 33%.

Now they wish to raise it another 25% to give to a corporation. I wished I owned an airline.
scooterbug44 avatar
scooterbug44SoWal Expert
#9
Is there a reason why they want to whomp the 'goose that laid the golden egg' upside the head w/a shovel during a recession/depression?

Did they miss the fact that last year's "staycation" will be this year's "naycation"?
NotDeadYet avatar
NotDeadYetBeach Fanatic
#10
They, and by "they" I mean most of our local government officials, do not view it as a significant tax increase (strange, since they are overwhelmingly Republican) because they do not view it as "our" money because "we" locals are not paying it. I have, repeatedly, heard not only the local officials but the state ones as well, refer to grant money as if it were free money from a tree, or fell from the sky. Oh, well, never mind that grant money is made up of tax revenue that came from somewhere. Just not here, I suppose :roll:
It's the same mindset at work.
Kurt avatar
KurtAdmin
#11
TDC Approves Resolution for 5th Cent Bed Tax Use | pcbdaily.com
TDC Approves Resolution for 5th Cent Bed Tax Use

In what was quite possibly the quickest TDC meeting that I’ve ever attended, the Panama City Beach Tourist Development Council unanimously (with the exception of Buddy Wilkes - who is out of the country) approved the adopted resolution to the use of the 5th cent of the bed tax. The tax increase is up for vote by the Bay County Commissioners tomorrow morning.

Florida statute mandates that TDC money levied through bed tax collections cannot be used “seat-guarantees”, but can be used for marketing purposes. Spefically with the application proposed, the money will be used for cooperative advertising with the low cost airlines targeting potential visitors to our area that would use the low cost carrier(s) that would fly into our new airport. If the increase in approved tomorrow this will allow 15 months of time to market to future potential feeder markets and hopefully give a low-cost carrier additional incentive and comfort in coming to the new Panama City Bay County International Airport.

Bay County Commissioner Ken Nelson, who is also a member of the Tourist Development Council said that he thought this would be much more acceptable to the County Commission.

One of the stipulations to the resolution is that at the end of 5 years, the TDC would need to come back to the County Commission to vote on the 5th cent again, otherwise, it would expire.
Miss Kitty avatar
Miss KittyMeow
#12
Did someone come out with an IDIOT pill that I haven't heard about????

Talk about biting the hand that feeds you. :bang:
ShallowsNole avatar
ShallowsNoleBeach Fanatic
#13
Note that Kurt's article refers to Bay County, which is jumping from 3% to 4% to 5% in the space of about two months.

Administratively speaking, that's going to be a cluster.
TooFarTampa avatar
TooFarTampaSoWal Insider
#14
TDC Approves Resolution for 5th Cent Bed Tax Use | pcbdaily.com
TDC Approves Resolution for 5th Cent Bed Tax Use

Florida statute mandates that TDC money levied through bed tax collections cannot be used “seat-guarantees”, but can be used for marketing purposes. Spefically with the application proposed, the money will be used for cooperative advertising with the low cost airlines targeting potential visitors to our area that would use the low cost carrier(s) that would fly into our new airport. If the increase in approved tomorrow this will allow 15 months of time to market to future potential feeder markets and hopefully give a low-cost carrier additional incentive and comfort in coming to the new Panama City Bay County International Airport.

Isn't it FAR more logical to think that a tax increase might drive renters away, thus decreasing the amount of traffic on said airline(s)? Hello?

Econ 101 : You don't raise taxes in a recession!
Matt J avatar
Matt JSWGB
#15
Okay, for one the TDC, Tourist Development Council, doesn't seem to know it's own name anymore. Tax them to death because bed tax collections are down and we need to advertise to find new people dumb enough to pay a 13% tax on their vacation.

Perhaps it's time that the TDC stopped appointing it's own successors, a violation of the law, and give the power back to the BCC.
BeachSiO2 avatar
BeachSiO2Beach Fanatic
#16
Perhaps it's time that the TDC stopped appointing it's own successors, a violation of the law, and give the power back to the BCC.

This is factually inaccurate, but since I have heard it more than once I thought I would comment on the process for selection of TDC board members.

The TDC does not appoint its successors, it is only a recommending body to the BCC. It recommends a successor to the BCC. The BCC does (and always has) select/choose the people who serve on the board of the TDC. The BCC has the right to go against the recommendation of the TDC and approve whomever they wish.

As a side note, the last selections included Jennifer Steele Saunders of the Cultural Arts Association.

THIS IS NOT A COMMENT FROM THE TDC, ONLY SOMEONE WHO KNOWS THEIR PROCESSES.
wrobert avatar
wrobertBeach Fanatic
#17
They, and by "they" I mean most of our local government officials, do not view it as a significant tax increase (strange, since they are overwhelmingly Republican) because they do not view it as "our" money because "we" locals are not paying it. I have, repeatedly, heard not only the local officials but the state ones as well, refer to grant money as if it were free money from a tree, or fell from the sky. Oh, well, never mind that grant money is made up of tax revenue that came from somewhere. Just not here, I suppose :roll:
It's the same mindset at work.


Who are you talking about? I have already had two commit to a no vote on the increase.
Andy A avatar
Andy ABeach Fanatic
#18
Isn't it FAR more logical to think that a tax increase might drive renters away, thus decreasing the amount of traffic on said airline(s)? Hello?

Econ 101 : You don't raise taxes in a recession!
Careful, now. You're asking for government representatives to use "common sense" and they are not normally known for doing that.
Bob Wells avatar
Bob WellsBeach Fanatic
#19
Wrobert,
Who are the 2?
wrobert avatar
wrobertBeach Fanatic
#20
Wrobert,
Who are the 2?


Why don't you talk to five of them and tell me who you think they may be. That will let me know if I can trust what I was told.

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