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

[Busta Hustle]

with Okaloosa already at 5% and Bay voting to up from 3 to 5% you really do not think that Walton will hold off and not raise their bed tax. Look at March income from last year. Walton's TDC take was a 13% increase and Okaloosa'a was a whooping 30% increase with their 5% tax already in effect. That's money left on the table in the eyes of any good monkey see monkey do taxing authority.

 

[wrobert]

with Okaloosa already at 5% and Bay voting to up from 3 to 5% you really do not think that Walton will hold off and not raise their bed tax. Look at March income from last year. Walton's TDC take was a 13% increase and Okaloosa'a was a whooping 30% increase with their 5% tax already in effect. That's money left on the table in the eyes of any good monkey see monkey do taxing authority.

I think it is possible. Pressure has already reduced them from seeking a 25% tax increase to only seeking a 12.5% tax increase. And that did not win unanimous approval of the TDC Board.

I have learned one thing, people need to more closely scrutinize the information that the TDC is releasing to the public. Mares places this back on a study or studies that they are paying to have done, but those studies are taking some very interesting liberties with the information. Mares using these numbers is just showing how ridiculous the thinking of the TDC is. They are quoting economic numbers for Walton County that I do not believe were obtained by the whole panhandle. If that amount of economic activity actually took place in the tourism industry, every resident in this county would be a millionaire by now.

 

[Kurt]

The Defuniak Herald ? TDC POISED TO ASK FOR BED TAX INCREASE

By LEAH STRATMANN
It was the decision of the South Walton Tourist Development Council (TDC) to ask for the support of the Walton County Board of County Commissioners (BCC) to approve a half-cent increase in the bed tax for the sole purpose of romancing a low-cost air carrier to the new airport in Panama City. An increase in tax from 4 percent to 5 percent was recently passed in Bay County for the same purpose and for a period of five years.
Billy Buzzett, vice-president of public affairs for the St. Joe Company, has been in negotiation with the airline the two tourist councils hope to attract to the Emerald Coast and was on hand to voice his support for the tax increase for the purpose of helping to market the area in tandem with the airline.
For much of the meeting, the airline name was not mentioned, until board member Mike Stange said, “We are talking about Southwest Airlines here, why not just say so?”
Buzzett acknowledged the truth of Stange’s comment and said negotiations seemed to be moving along nicely, but to date there has been no commitment on the part of the airline and said targeting a low-cost carrier will help to build Walton County tourism.
It was noted Bay County will begin collecting the fifth cent of tax in 60 days and the sooner the request of the TDC is brought before the BCC, the sooner the tax can be collected if the BCC approves.
TDC executive director Sonny Mares said the additional funds would ensure the already dedicated advertising funds will not be diluted. “These new funds can be used to good effect in targeting an airline. For instance, to penetrate one market like Chicago would cost around $2 million, which would take much of the current allocation. We will be working with neighboring TDCs in the marketing effort to attract an airline,” Mares said.
The Walton County Chamber of Commerce endorses asking for a fifth cent of tax to pursue the marketing effort, but board members said the fifth cent is the very last cent the TDC can assess and suggested caution be used since the marketing push is going to be a cooperative effort.
Board member Don McQuade said, “I don’t think the issues are clearly defined here. No one knows how much money will really be needed. The potential is tremendous. This airport probably will be the economic engine driving development in this area for the next 20 years. A one-penny increase equals$ 2.5 million. We have a resolution that says we are prepared to commit up to $l million. There is no clear definitive use for the remaining $1.5 million. In a difficult economic time, our customers are going to be asked to pay this tax increase. We need a clearer plan before going to the BCC.”
McQuade also noted a half-cent of tax once generated $2.8 million, but general decreases in tourism have lowered the ratio.
Mares said the TDC’s ad agency would be in talks with the airline to determine the financial needs to bring passengers into the plane and into this community. “We want the airport carriers to know how serious we are about getting new plane service to the area bringing tourists,” he stated.
“We better make sure this fifth cent is spent properly, because this is our last penny. I think we should pass a half cent increase and give 100 percent to the airline,” noted Stange. “We think Southwest wants to come here and we want them here. If they don’t come, don’t pass the tax. I think right now we need to get behind this 100 percent, but a half cent should be enough.”
Board member Tim Morris said the issue was coming to a head anyway and passing an increase could help to add some additional services to the area such as ball fields and so forth. “Additional services will create jobs and the local tax watch group has said they will not oppose this increase,” he said. Use of additional funds for the development of cultural arts was also discussed.
McQuade pointed out the TDC should not be in the business of building sports venues and in reality even though sports fields might bring in visitors, in most instances those groups were not prepared to pay the going rates for accommodations.
At this point, board member Jennifer Steele Saunders said just the opposite was true with visitors seeking cultural events. “Those visitors have more money and are willing to spend it,” she commented.
Another board member, Ken Gifford, asked why the fourth penny of tax, which is earmarked for new product development, was not being spent on cultural development. “Let’s get some dollars out of that fourth cent. I don’t see any reason not to find the money from this resource,” he said.
Mares said part of the funds generated by the fourth penny could be used to fund international marketing. “When the airport opens, it is expected to bring in international charters. We know Fort Walton Beach, Bay County and Walton County need to be in that market starting this November.
“Let’s make sure we are in a position with dollars in the bank to negotiate. I’m hoping to start putting things together that start to add up and resonate to them there is a deal here. This is a tough market for them too,” he said.
Gifford made this motion to increase the tax by one half of one cent with up to one million devoted to the airline and without a sunset provision when the tax would expire, and for the direct purpose of a attracting a low cost airline carrier with national and international marketing to achieve that goal. The motion carried by a vote of five to three.
A second motion by board member McQuade directed the TDC staff to re-examine the budget to allocate funds for a feasibility study for a cultural arts center and/or sports venues. All passed the motion.
Mares will try and put the tax increase issue on the March 24 agenda of the BCC.
In other news, the treasurer reported bed taxes were up 5.76 percent for January 2009, but numbers were down 9 percent for the preceding three-month period.
Construction is proceeding on the Inlet Beach bathrooms and the expectation is the bathrooms will be complete for the bulk of the tourist season.
Brad Pickel reported the signing of the Omnibus Bill by the president should mean the $565,000 is on the way to the area for the completion of the beach nourishment feasibility study. He also noted he, Mares and Commissioner Scott Brannon will be meeting with the area’s congressional delegation at the end of the month to discuss beach issues and that this is the seventh year in a row the area has gotten money from the federal government for beach restoration.

 

[30ashopper]

Maybe they will use the extra tax receipts to wash comforters after each rental.

Know what? I am hereby on strike. I will not rent another property in Walton county. I will take my biz elsewhere. I am not (yet) a property owner down there so this is a tax on me. I am getting a little tired of the "soak the tourists" mentality. Of course, then there is the reservation fee charged by (ahem) some property managers. Boycotting them too. :angry:

Oh please don't go Traderx, you are the reason I pay no state income tax. I can't tell you how much I appreciate your sacrifice. Better yet, buy a place down here and join the tax free party.

 

[Freshwater Bay]

We chose to stay in Okaloosa county this year because walton county had not adjusted their rental rates to go with the economy. We found that Destin was thriving and you would not have known there was a recession going on. Restaurants closed with people waiting in line to eat, stores and buying shoppers galore and the condos were packed. You seemed to get a little more for your money. We got an extremely nice place on the water 2/2 for $1400 for the week vs. $1400 for 4 days in Seagrove. Came to seagrove for the day. It was strange. The beaches were empty as if it was the dead of winter. People petter start screaming about the taxation on the tourist, or they will find somewhere else to go that does not tax them to death. Believe me I know. I grew up in Seagrove.

 

[BeachSiO2]

We chose to stay in Okaloosa county this year because walton county had not adjusted their rental rates to go with the economy. We found that Destin was thriving and you would not have known there was a recession going on. Restaurants closed with people waiting in line to eat, stores and buying shoppers galore and the condos were packed. You seemed to get a little more for your money. We got an extremely nice place on the water 2/2 for $1400 for the week vs. $1400 for 4 days in Seagrove. Came to seagrove for the day. It was strange. The beaches were empty as if it was the dead of winter. People petter start screaming about the taxation on the tourist, or they will find somewhere else to go that does not tax them to death. Believe me I know. I grew up in Seagrove.

You do know you paid a higher percentage of tourist development taxes (bed taxes or TDT) in Okaloosa County than you would have in Walton, right? Spending the $1,400 in Okaloosa County cost you $14 more in TDT then it would have cost you to stay in Walton yet you chose to go to Destin anyway. If you didn't know, would knowing you would have saved $14 in TDT by staying in Sowal changed your mind?

On another note, it appears that the first part of your post could be an interesting trend to watch. Will others choose locations due to the rental rates and what they are looking for this year thus moving out of the sowal area where on average daily rates are higher (primarily due to the number of houses versus hotels or condos)? In turn, will that lead to more price reductions or less bookings? After the hurricanes in 04-05, some properties reduced rates and offered special and some didn't. Overall, the revenue generated was higher in each subsequent year even with the hurricanes. I am curious if the economy will have a deeper impact this year.

 

[The Watcher]

Tax the Roadside Peddlers

If the County wants to watch the budget and generate revenue $$$, why are we not doing anything about the growing number of roadside vendors, popping up all over (West 98, East 98, North 331). These people just come over to Walton County, drive off the side of the road and set up shop.

They pay no taxes, no fees, and the sell junk (knock off sunglasses and handbags). Yesterday, I saw three females with a damn tent set up like a shopping bazar off of 331 North, past Freeport. Not only is it an eye-sore (Great first impression for someone coming to the area for the first time), but the County is loosing revenue.

If nothing more it is the principle that hard working, tax paying County Citizens and Business Owners are paying taxes, fees, etc., but these folks can just set up shop anywhere and take advantage of them. The County sits by and does nothing.

Where the hell is code enforcement? Maybe they need to work weekends and start some enforcement. I could recover my 401k by just issuing citations to the beach folk with bottles on the beach this past weekend, its really laughable (I know the SO enforces this as well). I'd be interested in their operational budget (code) and how it looks next to other Counties. As well as sometype of report card showing daily activity, "what have you done for us lately?".

w

 

[ShallowsNole]

You do know you paid a higher percentage of taxes in Okaloosa County than you would have in Walton, right? Spending the $1,400 in Okaloosa County cost you $14 more in taxes then it would have cost you to stay in Walton yet you chose to go to Destin anyway. If you didn't know, would knowing you would have saved $14 by staying in Sowal changed your mind?

Actually, she didn't. That is true in terms of the TDT, but when you look at total tax charged on rental accommodations, Okaloosa is at 11% now. We are also at 11% - even though our TDT is 4% and Okaloosa's is 5%, Walton County has a 1% surtax and Okaloosa does not.

As it stands now, managers of Walton properties and Okaloosa properties collect a total of 11% from their guests. For Walton properties, they send 4% to us and 7% to FDOR. For Okaloosa properties, they send 5% to Okaloosa and 6% to FDOR.

After the increase, Bay will be at 12%, we will be at 11.5%, and Okaloosa will be at 11%. This is assuming that the state sales tax does not get raised.

 

[BeachSiO2]

Actually, she didn't. That is true in terms of the TDT, but when you look at total tax charged on rental accommodations, Okaloosa is at 11% now. We are also at 11% - even though our TDT is 4% and Okaloosa's is 5%, Walton County has a 1% surtax and Okaloosa does not.

As it stands now, managers of Walton properties and Okaloosa properties collect a total of 11% from their guests. For Walton properties, they send 4% to us and 7% to FDOR. For Okaloosa properties, they send 5% to Okaloosa and 6% to FDOR.

After the increase, Bay will be at 12%, we will be at 11.5%, and Okaloosa will be at 11%. This is assuming that the state sales tax does not get raised.

Good point, I was only looking at TDT since that was the discussion raised by the thread title and the discussion at hand. Sorry for the confusion and thanks for the clarification SN.

 

[scooterbug44]

After the increase, Bay will be at 12%, we will be at 11.5%, and Okaloosa will be at 11%. This is assuming that the state sales tax does not get raised.

That certainly puts it in perspective - and makes it seem like a fair rate compared to our competition/neighbors.