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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
TooFarTampa avatar
TooFarTampaSoWal Insider
#77
The meeting is tomorrow night, and nobody here can tell you why it is a good idea because a bunch of us have been asking and so far ... nothing. :wave:
30ashopper avatar
30ashopperSoWal Insider
#78
It just amazes me how much we extract from the folks who rent and the folks who stay here, both of which provide a substantial amount of the funding for our infrastructure and government costs -

Question: Are there other taxes I must collect on my rentals?
Answer: Yes. In addition to the Tourist Development Tax, you must collect and remit state sales tax (currently 6%) and local sales tax (currently 1%) to the Florida Department of Revenue. The total tax to charge your guests is currently 11%.

http://clerkofcourts.co.walton.fl.us/default.aspx?id=40

On $5000.00 stay at a nice rental house for a week that's over $550.00 that comes out of the pocket of the renter, rental agency, and rentee, and that doesn't include sales tax on supplies purchased, and property taxes.

For a conservative county, we sure do like to tax the hail out of our people and guests.
cherijean avatar
cherijeanBeach Fanatic
#79
You've got that right! When everyone is having to cut back I do not believe that it is to our advantage to increase the tax for our guests to visit. The TDC should cut back and put the money needed for marketing where it is best spent... in my personal opinion!
Lynnie avatar
LynnieSoWal Insider
#80
FL has always had a high bed tax, I thought.
SHELLY avatar
SHELLYSoWal InsiderAuthor
#81
Can anyone tell me when this increase requests goes before the board AND convince me why it is needed.

thank you!

I'll be surprised if it doesn't pass--to me it sounds like they've made a pinkie swear with the boys in Bay Co.--"you do it first, then we'll do it too."

As for why it's needed--I think they're planning on offering to recoup Southwest's losses to take up residence at the new airport. From what I know about Southwest corporate culture, they're far too smart to take big money-losing risks, I don't see them moving to the Bay Airport on their own dime--which, being located out in the middle of miles of swamp and pine forests, clearly is a money loser for some time to come.

Edited

Bob Wells avatar
Bob WellsBeach Fanatic
#82
Although, I don't necessarily disagree with the idea of a TDC tax, but I think providing funding for the Bay County airport is kind of unreasonable. If companies such as Resort Quest, San Destin and the like want to support it then maybe they should be part of the businesses that make up those funds from their profits. Or maybe Sandestine can add another user fee on businesses located within Sandestin. To be honest I like the idea of Southwest coming to the Emerald Coast but not if they may leave because of an unprofitable market.
CK1Beach Lover
#83
Although, I don't necessarily disagree with the idea of a TDC tax, but I think providing funding for the Bay County airport is kind of unreasonable. If companies such as Resort Quest, San Destin and the like want to support it then maybe they should be part of the businesses that make up those funds from their profits. Or maybe Sandestine can add another user fee on businesses located within Sandestin. To be honest I like the idea of Southwest coming to the Emerald Coast but not if they may leave because of an unprofitable market.


The one cent tax is to help make our market profitable so Southwest can stay here. This money is going to directly impact the advertising for the new airport and bring Southwest Airlines to it. Southwest is asking all the counties that will be impacted by their coming to the new airport to chip in. This is something we need to do as I see it.
TooFarTampa avatar
TooFarTampaSoWal Insider
#84
The one cent tax is to help make our market profitable so Southwest can stay here. This money is going to directly impact the advertising for the new airport and bring Southwest Airlines to it. Southwest is asking all the counties that will be impacted by their coming to the new airport to chip in. This is something we need to do as I see it.

Please provide some proof of the above statements. Southwest is asking the counties to chip in? This is akin to a professional sports franchise threatening to move unless they get a new stadium. And yes, quite often those stadiums get built, but at the very least the people deserve exhaustive disclosure of any arrangements.

Frankly I find it amazing that on another thread, you posted about a tea party for Walton County. Don't you see the disconnect there? You are advocating raising taxes on loyal visitors -- and very likely, directly impacting homeowners who will end up taking less in rent because of this change.

By the way, it's a half-cent tax now. One cent was not going to fly.
Kurt avatar
KurtAdmin
#85
I thought the idea about the new airport was that if we built it airlines would be lining up to fly the masses of people .................... not that we would need to increase taxes during rough economic times to bribe a discount airline to fly here. :idontno:

How about we take all the money we waste on study groups, branding, and presentations, and spend it on things that improve the quality of life for residents and visitors.

Thanks - we can always count on you to cut to the chase. 😀

If an airport in Bay County was truly needed, then airlines would be lined up to get in. St. Joe made the airport happen. If St. Joe had the same clout it had before the bottom fell out of the market, Southwest would already be moving in. There were probably plenty of handshake agreements with one or more airlines whne the aiport was put on paper. Now, we are having to pay for the bubble popping.
30ashopper avatar
30ashopperSoWal Insider
#86
The one cent tax is to help make our market profitable so Southwest can stay here. This money is going to directly impact the advertising for the new airport and bring Southwest Airlines to it. Southwest is asking all the counties that will be impacted by their coming to the new airport to chip in. This is something we need to do as I see it.

If it was profitable for Southwest to be here, they'd already be coming. The idea of renters and rentees subsidizing this just makes my stomach turn.

I was looking through the TDC budget and some info on the council. I found it interesting that the entire council is made up of people who are in the big business tourism - banks, all the major developments like SD, rental management, and real estate companies... how a very specialized "single minded" group of individuals could be given the right to raise taxes on citizenry and guests is beyond me. In their budget, the do spend money of things that are of worth to the general public (like beach access, life guards, and beach restoration) but a substantial amount of it goes to marketing research and administration which directly benefits the businesses operated by those that run the council. It might be a good idea for the citizens of Walton to take a good hard look at this group, the power that they have and who they work for, I sense they are not working and implementing policy with everyone's best interests at heart.
SHELLY avatar
SHELLYSoWal InsiderAuthor
#87
If it was profitable for Southwest to be here, they'd already be coming. The idea of renters and rentees subsidizing this just makes my stomach turn.

I was looking through the TDC budget and some info on the council. I found it interesting that the entire council is made up of people who are in the big business tourism - banks, all the major developments like SD, rental management, and real estate companies... how a very specialized "single minded" group of individuals could be given the right to raise taxes on citizenry and guests is beyond me. In their budget, the do spend money of things that are of worth to the general public (like beach access, life guards, and beach restoration) but a substantial amount of it goes to marketing research and administration which directly benefits the businesses operated by those that run the council. It might be a good idea for the citizens of Walton to take a good hard look at this group, the power that they have and who they work for, I sense they are not working and implementing policy with everyone's best interests at heart.

Did you seriously think that these folks were doing what they do for the good of the local citizens??:funn:

Sure, they have to throw the citizens a bone now and again because they need their vote to keep doing what they do; and they need to keep some semblance of order and sanitation because they live in the county; but if one takes off the rose-colored glasses, a good deal of the decisions made is about feathering nests.

The vote tonite will prove a lot...I sincerely hope I'm proven wrong.

.

Edited

wrobert avatar
wrobertBeach Fanatic
#88
Sonny Mares has told Bob Hudson that the TDC will be pulling the resolution from the agenda tonight. I guess they can count. Now the real work begins. This thing, in the long run, has a very good chance of passing. Now the rental community needs to come together and meet with the TDC to see what they need from them to get behind this.
BeachSiO2 avatar
BeachSiO2Beach Fanatic
#89
Sonny Mares has told Bob Hudson that the TDC will be pulling the resolution from the agenda tonight. I guess they can count. Now the real work begins. This thing, in the long run, has a very good chance of passing. Now the rental community needs to come together and meet with the TDC to see what they need from them to get behind this.

I heard that the Walton County Taxpayers Association now supports increasing the bed tax by 1/2 percent for the marketing efforts. Is that accurate?
wrobert avatar
wrobertBeach Fanatic
#90
I heard that the Walton County Taxpayers Association now supports increasing the bed tax by 1/2 percent for the marketing efforts. Is that accurate?

This is the text of the letter that Bob Hudson sent to Maurice Gilbert stating the position of the WCTA.


Begin text:

Dear Maurice:
On behalf of the Walton County Taxpayers Association (WCTA), I thank you for your recent special workshop which opened up dialogue between our two groups on the proposed half cent bed tax.
We believe the amendments made to the original enabling language, a sunset provision, delaying collection until the next fiscal year and escrowing the revenue for the specific purpose of securing a low-cost airline, reflect your willingness to partner with the public and to act on public input.
The WCTA supports the initiative to partner with a low-cost airline which will open new markets and generate economic development for our entire coastal region. We understand that a marketing plan of this magnitude requires money on the table, money commitments speak louder than words. The TDC exists to develop tourism, and a low-cost airline is a major step in tapping new markets.
You have substantial support from most of the large resort properties in South Walton and a resolution from the Walton Chamber of Commerce. In recognition of the many small rental groups and individuals who rent their own properties, we ask that you work toward eliminating this temporary tax earlier than five years, if possible.
We believe that lower taxes stimulate economies. With Bay County raising bed taxes to 5%, it might also give Walton County a competitive edge to have a lower bed tax. As your existing marketing plans are updated and redesigned, as revenues increase because of new markets, it is our hope that there will be sufficient new monies generated in the 4% collections to offset the need for the incremental taxation and allow an earlier sunset.
Should the low-cost airline deal not materialize, we would hope the sunset would expire immediately.
Working together produces a positive and unified result. We appreciate the opportunity to work with you on this initiative and look forward to a continuing relationship.

End text.

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