PCB Spring Bed Tax Collections Slightly Down
By Valerie Garman, The News Herald, June 13, 2014
PANAMA CITY BEACH — After a 10 percent decline in revenues in March, tourism regained momentum in April, with the Bay County Tourist Development Council (TDC) reporting a 14 percent increase in bed tax collections year over year.
At a board meeting Tuesday, TDC officials cited a late Easter as the reason for the shift. Easter this year fell on April 20, whereas the date was March 31 in 2013.
However, with March traditionally representing the third biggest month of collections behind June and July, the decrease still put the destination a bit behind its combined revenue collections for March and April of last year.
In March 2013, bed tax revenue hit $2.13 million but reached only $1.91 million in March of this year.
Tourist Development tax specialist Charlene Honnen said March 2013 was a particularly high year for collections, trumping 2012 by about 20 percent.
Honnen also noted a shift in hotel and condominium stays between March and April to areas west of Pier Park and away from the Middle Beach Road area, a popular spot for college spring breakers.
In March, the Middle Beach Road area accounted for about 44 percent of overnight stays, while the Pier Park area and those to the west accounted for about 23 percent. In April, those numbers shifted to 37 percent and 30 percent, respectively.
Mayor Greg Brudnicki suggested a cap of 30 percent of funding to go to staff. Commissioners tabled that.
“Salaries can eat you alive,” Brudnicki said.
With the tax proposal, the commission will establish a nonprofit corporation to appropriate revenue. Zimmerman’s recommendation is the commission act as the board for the corporation.
Before it can be implemented, the tax must be approved by the County Commission, which likely would discuss in during its first meeting in July. Then the tax would go to a referendum countywide as soon as October. The soonest the tax can go into effect for the city would be Jan. 31.
In other action Tuesday, commissioners:
-Approved hiring attorneys Doug Sale of Panama City Beach and Mark Mustain of Tallahassee to serve as special counsel for the Panama City Marina Project.
-Approved a $27,562 additive charge for property for the Panama Marina Civic Project. Jeff Brown said the purchase is intended to move the road split further south to avoid a drainage pipe.
-Approved $2,367 for epoxy to keep sand from moving through seawalls along the marina.
-Agreed Panama City would follow the Florida sales tax holidays for school supplies Aug. 2-4.
-Acting as the Community Redevelopment Agency, approved a plan for a cultural heritage tourism district along Martin Luther King Jr. Boulevard.
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