Tourism news: Bay County Commission opts to not increase bed tax rate

PANAMA CITY − For now, Bay County will not increase the bed-tax collection rate.

Bay County commissioners on Tuesday opted to not hike the rate from 5% to 6%. Commissioner Bill Dozier's motion died for lack of a second and thus did not proceed to a final vote. The increase would have required a supermajority to pass.

Bed taxes, or tourist development taxes, are assessed on short-term rentals. Tax receipts are used to help fund a variety of expenses, including marketing the area throughout the U.S., construction of some local developments, beach renourishment projects and public safety.

"I don't believe this one penny is going to deter anybody from coming to Panama City Beach," Dozier said. "The money that has been raised in the past (has benefitted) Bay County. We have all seen that.

"I'm certainly willing to support this one cent because of the benefit it can do for everybody in the county."

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Dan Rowe, president and CEO of Visit Panama City Beach, was among those who spoke during the meeting. He noted that 2009 was the last time the local rate was increased. At that time, it was raised from 4% to 5%.

Rowe said the additional cent would have better helped the area compete with other major tourism markets in the Panhandle, including Okaloosa County, which he said has a 6% bed tax.

"As we look down the road, we are focused on developing new market segments with responsible tourism that will enhance our ability to attract mid-week, non-summer business, creating amenities that appeal to our visitors and our residents alike to enhance and increase the quality of life within Bay County," Rowe said.

Panama City Beach Mayor Mark Sheldon also spoke in support of the increase. For him, bed-tax revenue helps diminish the need for additional ad valorem tax revenue.

Sheldon also said tax collections played a key role in helping the Beach begin its transition almost a decade ago from a wild spring break town to a year round, family friendly destination.

"Panama City Beach was built on the idea that visitors would pay their fair share along the way," Sheldon said. "When the community made the difficult decision to shed its wild spring break past, the tourist tax was there to attract new guests. Today's spring break's economic impact has been dwarfed by families visiting in overwhelming numbers."

Commissioner Robert Carroll said annual bed tax collections continue to rise each year without the additional percentage point, as more and more visitors flock to the area. He also said the majority of locals he has talked to about the issue oppose the tax rate hike.

"My phone has been almost nonstop the past couple of days, and the majority of people I've talked to are against the tax," Carroll said. "The message that I'm getting is overwhelmingly not in support of the tax increase."

This article originally appeared on The News Herald: Bay County Commission won't increase bed tax from 5% to 6%