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

[ShallowsNole]

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.

Didn't mean to throw you under the bus, buddy... We are all in this together :-)

[BeachSiO2]

Didn't mean to throw you under the bus, buddy... We are all in this together :-)

No buses here. I just wanted to make sure the poster knew that they were paying more TDT taxes in case they thought they weren't. I think people would be surprised at how many destinations in Florida and throughout the southeast charge 5% or more TDT (or other short term rental taxes) on top of sales taxes and local option taxes already. Last I checked it was over 15 counties in Florida, with five counties charging 6%. I know Walton is limited to 5% max but I wonder how many people know they are paying 6+6 sales tax when they visit Mickey Mouse, South Beach, Jacksonville, etc. Not to mention, that Hilton Head, the Georgia Isles, etc. are at either 5 or 6% TDT and I believe Charleston, SC is around 7-7.5%.

Once again my bigger interest is in watching how base rental rates affect the movement of a visitor from one destination to another as belts are tightened. Sowal has largely been insulated in the past due to the overall, visitor demographic, and driving proximity to Nashville, B'ham, Atlanta, etc. even in spite of hurricanes. Will that trend continue? Will summer stay strong and spring and fall take a hit because families are only taking one vacation and not an extra spring or fall break trip. Will visitors want a smaller length of stay and how will that affect locations with minimum stay requirements? After watching it for a number of years, these are the things I am interested in.

[SHELLY]

No buses here. I just wanted to make sure the poster knew that they were paying more TDT taxes in case they thought they weren't. I think people would be surprised at how many destinations in Florida and throughout the southeast charge 5% or more TDT (or other short term rental taxes) on top of sales taxes and local option taxes already. Last I checked it was over 15 counties in Florida, with five counties charging 6%. I know Walton is limited to 5% max but I wonder how many people know they are paying 6+6 sales tax when they visit Mickey Mouse, South Beach, Jacksonville, etc. Not to mention, that Hilton Head, the Georgia Isles, etc. are at either 5 or 6% TDT and I believe Charleston, SC is around 7-7.5%.

Once again my bigger interest is in watching how base rental rates affect the movement of a visitor from one destination to another as belts are tightened. Sowal has largely been insulated in the past due to the overall, visitor demographic, and driving proximity to Nashville, B'ham, Atlanta, etc. even in spite of hurricanes. Will that trend continue? Will summer stay strong and spring and fall take a hit because families are only taking one vacation and not an extra spring or fall break trip. Will visitors want a smaller length of stay and how will that affect locations with minimum stay requirements? After watching it for a number of years, these are the things I am interested in.

Another thing to take into consideration is the effect of the anticipation of inflation. When people see the probability of inflation nearing, spending tends to surge as they scramble to get the most bang for the buck before it tanks.

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[wrobert]

What I find interesting is how TDC members tell me they voted against the thing when all they did was vote against sending it to Bay County, while still voting to raise the tax 25%. You get so many stories, yet the minutes of the meeting tend to speak the truth. No plans, no real direction, just get the money and start collecting it so they will have it if needed.

In one section of the minutes the TDC answered a question about finding money within their current budget for marketing. They said they asked their long time advertising agency if they could re-allocate some funds. Imagine what their vendor said? Heck no, we need all of those dollars, we need you to go and get more if you want to market an airline. We need 2-3 million to do that properly.

All of this research on bed taxes has made me realize one thing, government in this State that depends so heavily on tourism, is soaking you guys each and every chance they get. Personally, I would vacation somewhere else just on principle.

[Bob Wells]

Wrobert
Are you now, or have you ever attempted to be appointed to these Boards so that you have the opportunity to represent your beliefs? I realize you have a right to your opinion and I support that right, but it is obvious that you sitting on these boards would be a great benefit because of your passion. Although I may oppose most of what you say, I do believe you have a concern for your community.

[wrobert]

Wrobert
Are you now, or have you ever attempted to be appointed to these Boards so that you have the opportunity to represent your beliefs? I realize you have a right to your opinion and I support that right, but it is obvious that you sitting on these boards would be a great benefit because of your passion. Although I may oppose most of what you say, I do believe you have a concern for your community.

I lobby my beliefs to the members of the boards and the BCC. As for getting appointed, I have my plate full as it is. Working hard to try to keep the unions from taking over the world.

Seriously, Bob, I really am spread kind of thin. This stuff takes way too much research to come to a conclusion and then to offer evidence supporting that conclusion.

The disappointing thing is I get the impression that I spend more time studying these issues than the guys that actually get to vote on them.

[wrobert]

ResortQuest has come out in favor of a 12.5 percent lodging tax increase on tourists in Walton County.



Question: How do management companies get paid when they do these vacations rentals? Is it flat fee or a percentage of the total bill? If it is a percentage is it before or after tax total?

[SHELLY]

ResortQuest has come out in favor of a 12.5 percent lodging tax increase on tourists in Walton County.



Question: How do management companies get paid when they do these vacations rentals? Is it flat fee or a percentage of the total bill? If it is a percentage is it before or after tax total?

Walton TDC wants to raise bed tax by a half-cent
Walton TDC wants to raise bed tax by a half-cent | county, percent, walton - News - Northwest Florida Daily News


....Math, according to the TDC:

-----------------------------------------------------------


"The proposal already is meeting opposition by the Walton County Taxpayers Association, a local government watchdog group.

On its Web site, the association says the Beaches of South Walton has "placed a proposal on the agenda ... to increase taxes on rentals by 12.5 percent beginning June 1," and that the association's board has voted unanimously to oppose the hike.

However, Mares said the 12.5 percent figure is "somewhat deceptive."

"The tax is a half-cent increase; the percent of change from 4 cents to 4.5 cents is 12.5 percent. These are totally different ways to represent the proposed increase, and obviously will be confusing to most," he said in an e-mail." <huh?>


---------------------------------------------


Maybe Sonny was absent from grade school the week they taught percentages?

.

.

[TooFarTampa]

ResortQuest has come out in favor of a 12.5 percent lodging tax increase on tourists in Walton County.



Question: How do management companies get paid when they do these vacations rentals? Is it flat fee or a percentage of the total bill? If it is a percentage is it before or after tax total?

In general, from my experience with a few management companies, this is how they get paid:

1) Commissions (usually in the 20-30 percent range, calculated on the rental rate before taxes)
2) Processing fees charged to the guest, which seem to be a way to offset but not entirely cover the significant charges for accepting credit cards for payments of $2K, $4K and up.
3) Cleaning fees, which are in addition to the commission. Not sure if these are money-makers for every company, but it seems like they must be profitable to at least some degree because they are high.

The taxes don't matter too much to the management companies. However they do make a difference to the owner, because the owner is the one who gets what is left after commission, cleaning and maintenance fees are taken out. The renters usually have a figure in their heads. "I want to spend 3K or 2K" or whatever. If the taxes are higher, then the available funds that actually go to the owners end up being lower.

Sure, it may end up being only $100 or $200 less to the owner over the summer season, but that's a couple months' worth of wireless internet service, phone service, etc. And remember -- by making their homes available to renters, owners are offering a service, one that generates income not just to the owners, but to the TDC and the management companies.

This is why I say that if real estate prices go low enough, the new buyers are going to take these rental units off the market, because at a certain point it isn't worth it. As a second homeowner you can rent a place out tax-free for two summer weeks, deduct the mortgage interest, and be done with it.

[kurt]

Walton TDC wants to raise bed tax by a half-cent | county, percent, walton - News - Northwest Florida Daily News

The Walton County Tourist Development Council will ask county commissioners Tuesday to raise the bed tax by a half cent to 4.5 cents on the dollar to help fund marketing efforts it hopes will bring in more tourism revenue.

If approved, the TDC plans to use the more than $1 million in anticipated revenue to help market the Emerald Coast to a low-cost airline that would use the Panama City-Bay County International Airport, scheduled to open in May 2010.

Bay County, which raised its bed tax on short-term rentals to 5 percent in February, and the Bay county Airport Authority also will help pay marketing costs.

Mares anticipates "quite a bit of discussion" at Tuesday's commission meeting, but said he thinks a decision likely will be made that night.

"We have tried to provide as many answers to questions as we can anticipate (before the meeting)," he added.

The proposal already is meeting opposition by the Walton County Taxpayers Association, a local government watchdog group.

On its Web site, the association says the Beaches of South Walton has "placed a proposal on the agenda ... to increase taxes on rentals by 12.5 percent beginning June 1," and that the association's board has voted unanimously to oppose the hike.

However, Mares said the 12.5 percent figure is "somewhat deceptive."

"The tax is a half-cent increase; the percent of change from 4 cents to 4.5 cents is 12.5 percent. These are totally different ways to represent the proposed increase, and obviously will be confusing to most," he said in an e-mail.

Bob Hudson, president of the taxpayers group, said some companies have already signed contacts with renters with the 4 percent bed-tax included. If that goes up a 0.5 percent as proposed, some smaller lodging places that already are struggling will be left with the bill.

He said some association members will attend Tuesday's Commission meeting but did not know whether they will speak.

The last time Walton County's bed tax was raised was in 2004, when it went up from 3 cents to 4 cents on the dollar. The fourth cent was used for marketing to potential visitors and for beach maintenance, Mares said.

Southwest Airlines was mentioned several times at Wednesday's TDC meeting during a presentation about the results of a marketing study.

The presentation, given to show the possible new markets that the new airline would serve, focused on the cities Southwest already flies out of. The top five markets are Nashville, Houston, Orlando, Baltimore and Washington, D.C.

Mares said that with the right marketing, the local tourism industry could reach more than 3 million households that fit the demographic profile of visitors to South Walton.

The study determined the top markets by categorizing visitors by age, income and net worth. Also included was information such as their preferred lodging and dining preferences, magazines they read and the television and radio programs they listen to.

[sam story]

Dear friends the sky will not fall from a half cent rise in the bed tax. Indeed, it may well be a 12.5% increase in the tax. However, let me borrow from one poster who had the concern that "it is not "pennies" when you pay $2K for a week's rent". For that $2,000 of weekly rent, the vacationing family will now pay an additional $10. I don't really think that a vacationing family will choose another destination over Walton County based on an extra $10. As far as those who would say that Walton County vendors will now receive $10 less from that vacationing family...how do you get to that leap of logic. Sure...vacationing family will have $10 less theoretically...but who is to say that they won't adjust their budget elsewhere to account for it. To say that they'll spend less here in Walton County is reaching at best and propaganda at worst.

Look...I am by no means a fan of taxes. But you can't let the "no new tax tail" wag the "economic dog." Bottom line...we've tapped out the "driving demographic," that being those families within driving distance of our beaches. We have done our best to attract those families and saturate those markets with our message. If we want to increase our visibility and widen our net so to speak, then this bed tax is the best way for us to fund that. Attracting a major carrier like Southwest would be a boon to our local economy for two reasons. One: build it and they will come...we would move beyond the driving demographic to a more national (or international) demographic. Two: How cool would it be for us to have the option of flying out of here on Southwest? Not bad. Bay County has already ponied up money to attract Southwest and we said we would do our part in Walton County. It makes sense to me that we hold up our end of the bargain. The better our region does, the better we do.

What puzzles me the most is that our local tax watch dog groups are against this. Their mission statements are to protect the Walton County tax payer. They are lobbying against a "bed tax" paid by non-residents that will go toward a benefit for Walton County taxpaying residents. If the "bed tax" gets shot down, and Walton County still wants to attract more families to our area, then the cost will now come out of Walton County taxpayer wallets. So in a sense, these tax watch groups are lobbying against their own self interest.

If I've missed something, then please correct me. Thanks.

Pura Vida.

[SHELLY]

If I've missed something, then please correct me. Thanks.

Pura Vida.

How is this money going to be spent to "attract" Southwest?

Are we going to bribe them to come here or are we going to fund some "committee" who will put together some kind of whiz-bang powerpoint presentation to Wow(!) them, and then take them out to wine and dine them till they cry "uncle?"

What if, after all this money is spent, they still say 'No.' Do you have a plan B?

In the end, it appears to me, with all the talk about "holding up our side of the bargain" and that a "decision will be made on Tuesday," it appears that an awful lot of talk has gone on behind the scenes, in the shade, out of the sunshine.

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[wrobert]

What puzzles me the most is that our local tax watch dog groups are against this. Their mission statements are to protect the Walton County tax payer. They are lobbying against a "bed tax" paid by non-residents that will go toward a benefit for Walton County taxpaying residents. If the "bed tax" gets shot down, and Walton County still wants to attract more families to our area, then the cost will now come out of Walton County taxpayer wallets. So in a sense, these tax watch groups are lobbying against their own self interest.

If I've missed something, then please correct me. Thanks.

Pura Vida.

I guess I am missing your confusion. The WCTA represents all taxpayers that pay taxes in Walton County. Our current membership is approximately 850 of whom about half live here and the other half do not.

I do think that Andrew Jackson had the right idea though.

[wrobert]

CAPEC executive board has formally taken the position to oppose the Walton County Bed tax increase. This association represents over 6000 property owners in Walton and Okaloosa County.

[TooFarTampa]

How is this money going to be spent to "attract" Southwest?

Are we going to bribe them to come here or are we going to fund some "committee" who will put together some kind of whiz-bang powerpoint presentation to Wow(!) them, and then take them out to wine and dine them till they cry "uncle?"

What if, after all this money is spent, they still say 'No.' Do you have a plan B?

In the end, it appears to me, with all the talk about "holding up our side of the bargain" and that a "decision will be made on Tuesday," it appears that an awful lot of talk has gone on behind the scenes, in the shade, out of the sunshine.

.

Thanks SHELLY, this is the question.

I'm glad you joined so you could at least partially post your side, Sam Story, but it would be great if you could follow up by explaining exactly how this money will be spent. Is it payment directly to Southwest -- ie a subsidy? If it is marketing, then why do you think this will work? Can you give examples of how this has worked in the past?

Furthermore, why institute this tax in the middle of a tax period? The TDC collects bed tax quarterly and the current collection period is April 1-June 30. Why not wait until July 1 to make it easier for everyone? Why change the rate collected in the middle of the quarter?

Better yet, why not wait until AFTER this current rental season is over, so those who have already booked for the summer will not have to hear that "oh, by the way, you are going to have to pay another $10 or $20 or in some cases $40 or $50, so sorry."

The tourists and second homeowners who will NOT be able to attend this meeting on Tuesday would like to know, since they are the ones who will be directly and indirectly affected.

If those who are making the decisions don't understand that the timing of this vote is awkward at best, then they are out of touch. The meeting is scheduled for April 14? The day before thousands are going to be holding so called tea-parties to protest (I am assuming because I will not be attending them) federal taxation and spending?

We are in the middle of a severe recession and there is an ongoing national discussion about taxes, government budgets and government spending. It would be helpful if the TDC and/or the county commission could lay out a serious and specific case for raising taxes at this time.

Thanks in advance for your answers!

[sam story]

I do think that Andrew Jackson had the right idea though

Now wRobert, if I was Native American I might be offended...;) Easy tiger, lets keep it amicable.

My point was merely that the tax groups were against a tax being paid by non-property owners for a benefit conferred upon the property owning members of the tax groups. They were in a sense voting against their own self interest. It seems that they are against the tax only because it is a tax. While I typically agree with the "any tax is a bad tax" school of thought, I thought this particular idea had merit. I feel strongly about getting Southwest to our airport.

I also agree with Shelley and TooFarTampa...I too would like to know more about how the money will be spent. I don't think we should go around handing cash out. But if it increases our chances of getting Southwest, then I think it would be money well spent. You know how much you pay to fly out of here. You also know what kind of legitimacy such an airline would give to the airport. I will see what I can find out about the details for how the money will be spent.

In the meantime, lets give a little more respect to our local leaders. A good citizen always questions and thinks for themselves. But its helpful to remember that our officials do dedicate a lot of their time to an often thankless job. Rember the following words and if you think the job is not being done, then be a doer and not a monday morning quarterback...

"It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat."

Theodore Roosevelt
"Citizenship in a Republic,"

Speech at the Sorbonne, Paris, April 23, 1910

[SHELLY]

In the meantime, lets give a little more respect to our local leaders. A good citizen always questions and thinks for themselves. But its helpful to remember that our officials do dedicate a lot of their time to an often thankless job. Rember the following words and if you think the job is not being done, then be a doer and not a monday morning quarterback...

Personally, I think we've given our leaders (national, state and local) too much slack on the leash up to this point (BTW--Aren't they all public servants??>.

It's time for them all to account for our taxes and answer the what, why, when, how, and who concerning our tax dollars. The folks in our neighboring county are just now finding out how "trustworthy" their leaders were with the tax dollars entrusted to them.

One should not be trite when it comes to taxes paid by our guests--most have worked long and hard for this money and their contributions deserve our consideration and respect. Neither taxes collected from residents, nor bed taxes collected from our guests, should be tossed willy-nilly into some pie-in-the-sky, jobs-for-the-boys black hole.

This tax should not be approved until they spell out exactly how they plan to use and account for this money...or are they going to use the same mindset they used for the airport, "Tax it and We will Spend."

[wrobert]

The resolution that the TDC wants passed to increase the sales tax 12.5% speaks to placing a low cost airline in Bay or Okaloosa County. But I keep getting indications that this whole thing is for the Bay County Airport. What business has placed so much emphasis and really needs this Bay County Airport to do so well?

[scooterbug44]

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.

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.

[traderx]

Below is a statement from the new airport website:

The U.S. Department of Transportation awarded a $575,000 grant to the Panama City – Bay County airport to help attract a low cost carrier to the region and to help current airlines expand their service. The federal dollars will be matched by $529,500 in cash and in-kind contributions from the local business community.

Has the local business community contributed the $529,500 or is the bed tax increase envisioned for that purpose?

Why Southwest? Southwest does not even fly out of ATL. It seems that local leaders would want an airline that can connect with other flights at the world's busiest airport three hundred miles away.

[Bob Wells]

I would venture to guess they are seeking folk from other locals other than going through the hub stop in ATL. Besides look at the # of flights from ATL to here.

[Jdarg]

Bottom line...we've tapped out the "driving demographic," that being those families within driving distance of our beaches. We have done our best to attract those families and saturate those markets with our message. If we want to increase our visibility and widen our net so to speak, then this bed tax is the best way for us to fund that. Attracting a major carrier like Southwest would be a boon to our local economy for two reasons. One: build it and they will come...we would move beyond the driving demographic to a more national (or international) demographic. Two: How cool would it be for us to have the option of flying out of here on Southwest? Not bad. Bay County has already ponied up money to attract Southwest and we said we would do our part in Walton County. It makes sense to me that we hold up our end of the bargain. The better our region does, the better we do.
.

Sam Story's explanation regarding the driving distance demographic is also how I interpret the need for bringing in Southwest.

[wrobert]

Below is a statement from the new airport website:



Has the local business community contributed the $529,500 or is the bed tax increase envisioned for that purpose?

Why Southwest? Southwest does not even fly out of ATL. It seems that local leaders would want an airline that can connect with other flights at the world's busiest airport three hundred miles away.

Good questions. But unable to establish communication in order to get answers.

[SGB]

What puzzles me the most is that our local tax watch dog groups are against this. Their mission statements are to protect the Walton County tax payer. They are lobbying against a "bed tax" paid by non-residents that will go toward a benefit for Walton County taxpaying residents. If the "bed tax" gets shot down, and Walton County still wants to attract more families to our area, then the cost will now come out of Walton County taxpayer wallets. So in a sense, these tax watch groups are lobbying against their own self interest.

WIth the current economic climate, much of this bed tax will end up essentially being paid by the rental home owner, many of whom are local, myself included. Many of the inquiries we have received on our rental home this year have requested a discount. During parts of the year, we have heavily discounted our rates to keep the house rented and visitors coming. The visitors are looking at the total cost of renting, including taxes, and deciding if they can afford to rent your house. So if the tax is $20 more for the week, that's $20 less I can charge for my rental rate. because the total cost can't go up. So in essence, for every dollar I have to collect in taxes, it is one dollar that doesn't go to me or my management company. In many cases, the cost will be coming out of Walton County taxpayer wallets.

[wrobert]

Opposition to this tax appears to be overwhelmingly leaning toward the small or single property owner. I have seen support letters from Sandestin, Resortquest, Army Aviation Federal Credit Union so far.

Today and tomorrow are it for letting your commissioner know how you feel. They will be voting on this issue tomorrow night at the south Walton BCC meeting.

[cherijean]

Can anyone tell me when this increase requests goes before the board AND convince me why it is needed.

thank you!

[TooFarTampa]

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.

[30ashopper]

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]

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]

FL has always had a high bed tax, I thought.

[SHELLY]

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.

[Bob Wells]

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.

[beach ho]

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]

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]

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.

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]

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]

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??

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.

.

[wrobert]

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]

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]

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.

[wrobert]

I understand that they are also going to have a workshop for the private home rental persons before the meeting. The TDC has really reached out on this one after pulling it from the agenda last month. You have to give them kudos for listening to the objections and responding positively.

[kurt]

Walton modifies bed-tax hike plan - The News Herald

A proposal to raise the bed tax in Walton County has been revised following a meeting between representatives from the Beaches of South Walton Tourist Development Council and the Walton County Taxpayers Association. The proposal calls for the bed tax on short-term rentals to increase from 4 cents to 4.5 cents on each dollar, which, according to figures provided by the TDC, equates to $15 on a $3,000-a-week rental. The half-cent hike is expected to bring in more than $1 million in additional revenue each year.
If it had been approved as originally proposed, it would have gone into effect June 1, with no set timeline for it to expire.
But following the meeting with the taxpayers association, the TDC amended the proposal so that the tax hike would not go into effect until Oct. 1, and it would only be collected for five consecutive years rather than for an indefinite period.
Delaying the implementation until Oct. 1 not only allows the additional funds to be put into next year's budget, said Bob Hudson, president of the taxpayers association, but it also means that the rental companies that already have signed contracts with renters with the 4 percent tax included will not have to make up the difference out of their own pockets.
The proposal was also amended to stipulate that the additional funds will be used only to promote the Emerald Coast to a low-cost airline that Walton County officials hope will open up new national and international tourism markets.
If Southwest Airlines, which is now being courted, ultimately declines, Hudson pointed out, then the bed tax would have increased for nothing.
"(The TDC) agreed to escrow the money and set it aside to try and bring in another low-cost carrier if they can't get Southwest," he explained. "With everything that's gone on as far as transparency in government over the last few months, we wanted to make sure that the commission and any bed-tax collectors or payers knew exactly what the money was going to be used for."
A presentation about the possible new markets that Southwest or another low-cost airline would open up to the Emerald Coast was given at a TDC meeting in April. The marketing research showed that a low-cost airline would open the door for more than 3 million new visitors.
"It is important to note that the dollars generated from a half-cent increase will be used to create a national and international marketing program associated with driving new travelers to the region," Tracy Louthain, director of public relations for the TDC, wrote in an e-mail. "The TDC will exercise control over how and where the additional revenue is spent and is not turning over a ‘blank check' to a low-cost air carrier."
In a letter to the TDC, Hudson thanked the board for the amendments and said they "reflect your willingness to partner with the public and act on public input."
However, he did ask that the five-year time line be cut shorter if possible.
If a low-cost airline cannot be convinced to utilize one of the airports in the region, the letter continued, "we would hope the sunset would expire immediately."
WANT TO GO?
What: Bed-tax workshop
When: 5:30 p.m. May 7
Where: Coastal Branch Library, 437 Greenway Trail, Santa Rosa Beach
Information: 822-6877

[wrobert]

What I hate to see happening now is the TDC sending out a press release and emails stating that the WCTA is now in support of the bed tax increase. But I understand that the miscommunication will be corrected in the next workshop.

[kurt]

The Defuniak Herald » BED TAX TO INCREASE BY HALF-CENT IN OCTOBER

By DOTTY NIST

In an effort to establish “The Beaches of South Walton” as a fly-to destination, in six months Walton County will begin collecting an additional “half- cent” in bed taxes on rental receipts from short-term accommodations in south Walton County.
The Walton County Board of County Commissioners (BCC) approved the tourism tax increase at its May 11 regular meeting, in response to a request from South Walton Tourist Development Council (TDC) officials.
Sonny Mares, TDC executive director, and Maurice Gilbert, TDC chairman, presented the request. Gilbert commented on the “tremendous opportunity” for Walton County represented by the new Panama City-Bay County International Airport, which is now more than half-complete and scheduled to open in May 2010. The location of the 4,000-acre airport is the West Bay area, just a few miles from the Bay-Walton County line. Tourism officials and other community leaders are hopeful that the entry of at least one low-cost air carrier into the area will result from the airport opening. Gilbert said tourism officials have given pursuit of this opportunity high priority due to its potential to attract business to the local area.
The bed-tax increase was proposed as a funding means to promote Walton County’s beaches to areas outside the current market, composed predominantly of visitors who access the area by automobile, and to cooperatively market any new low-cost air service. The tourism officials reported research identifying a potential of 3.2 million households that could be targeted in such efforts by directing marketing just to four new areas. Bay County recently approved a one-cent (one percent) bed-tax increase for the same purpose.
Mares told the commissioners that Walton County needs the additional one percent in bed taxes because shifting existing funding from current marketing efforts would damage those efforts.
The resolution from the TDC that was presented to the commissioners stated the purpose of the increase as “supporting low cost air service into the region at either Okaloosa County Airport or Bay County Airport through promotion and advertising of Beaches of South Walton Tourism and such air service in new, developing markets.” However, there was no mention, either by the tourism officials or anyone else speaking at the May 11 meeting, of the Okaloosa County Airport or any specific air carrier other than Southwest Airlines.
More than two dozen people, including many tourism leaders and bed-tax collectors, stood when Mares asked for a show of support. Mares also presented the commissioners with letters supporting the half-cent increase, written by representatives of Hampton Inn & Suites, Sandestin Golf and Beach Resort, Rosemary Beach, the Hilton Sandestin, Beach Rentals of South Walton, One Seagrove Place, Alys Beach, WaterColor, Seaside, and Resort Quest. Included was a resolution of support from the Walton County Chamber of Commerce, and Dawn Moliterno, chamber executive director/CEO commented that not one of her organization’s more than 1,300 members had indicated opposition to the increase.
Moliterno was of the opinion that the increase would result in more job opportunities in the local area. “We need to say yes to business and we need to say yes to Southwest,” she urged.
The Walton County Taxpayers Association (WCTA) had also gone on record in support of ” the initiative to partner with a low-cost airline which will open new markets and generate economic development for our entire coastal region,” as stated in a letter signed by association president Bob Hudson.
“The TDC exists to develop tourism, and a low-cost airline is a major step in tapping new markets,” Hudson’s letter added.
The WCTA’s support was the result of the recent addition of conditions to the imposition of the bed-tax increase, including the October 1 effective date, a sunset on the increase after a five-year period, and arrangements to escrow the new revenue for the specific purpose.
Hudson’s letter encouraged the TDC to “work toward eliminating this temporary tax earlier than five years, if possible.”
The letter added, “Should the low-cost airline deal not materialize, we would hope the sunset would expire immediately.”
Mares noted that more than a 54-percent occupancy rate had never been achieved for short-term accommodations in south Walton County. He saw the efforts toward a fly-to market as a means to boost occupancy.
A number of critics of the increase voiced their opinions.
“I feared this,” said Larry Gibson of Tops’l Resort, who was concerned that any tax increase on tourists would “ruin us.”
“How many people is this really going to put in hotels?” Gibson asked.
Suzanne Harris of Edgewater Beach Resort was of the opinion that the increase would not be needed if everyone who was supposed to be paying bed taxes were made to do so. (Martha Ingle, Walton County Clerk of Courts, later commented that a person on her staff is dedicated to collecting bed taxes from property owners who have not been paying them.) Harris warned that tourists were aware of plans for the increase and strongly opposed to it.
“It’s an insult to their intelligence,” Harris asserted.
She was very much in favor of Southwest Airlines and bringing them to the area but thought there were better ways to go about it.
“We need to look for an alternative,” agreed south Walton County resident and property owner Mary Nielson,
South Walton County resident Charlotte Flynt shuddered to think what tourist occupancy of more than 54 percent would be like. “We don’t have the infrastructure to handle it,” she told the commissioners.
“We all want Southwest Airlines,” countered Michael Chouri of the Sandestin Beach Hilton. Chouri told the BCC that the airline would not come to the area “unless you entice them,” adding that it will not be possible to do that without the bed-tax increase.
Citizen Bonnie McQuiston reasoned that, if one takes the position that more tourists are not needed, then there is no reason for a TDC. She added that if these efforts double or triple the occupancy rate, it may be necessary to sunset the increase sooner than the five-year period. She was upbeat about the possibility of Southwest Airline coming to the area, saying she was tired of paying more to fly on other airlines with service that was not up to Southwest’s standards.
District 3 Commissioner Larry Jones moved for approval on the half-cent increase with attached conditions, based on the 70-percent support of the measure among bed-tax collectors that Mares had indicated.
His motion was approved by unanimous vote.

[kurt]

The Defuniak Herald » BED TAX TO INCREASE BY HALF-CENT IN OCTOBER

By DOTTY NIST

In an effort to establish “The Beaches of South Walton” as a fly-to destination, in six months Walton County will begin collecting an additional “half- cent” in bed taxes on rental receipts from short-term accommodations in south Walton County.
The Walton County Board of County Commissioners (BCC) approved the tourism tax increase at its May 11 regular meeting, in response to a request from South Walton Tourist Development Council (TDC) officials.
Sonny Mares, TDC executive director, and Maurice Gilbert, TDC chairman, presented the request. Gilbert commented on the “tremendous opportunity” for Walton County represented by the new Panama City-Bay County International Airport, which is now more than half-complete and scheduled to open in May 2010. The location of the 4,000-acre airport is the West Bay area, just a few miles from the Bay-Walton County line. Tourism officials and other community leaders are hopeful that the entry of at least one low-cost air carrier into the area will result from the airport opening. Gilbert said tourism officials have given pursuit of this opportunity high priority due to its potential to attract business to the local area.
The bed-tax increase was proposed as a funding means to promote Walton County’s beaches to areas outside the current market, composed predominantly of visitors who access the area by automobile, and to cooperatively market any new low-cost air service. The tourism officials reported research identifying a potential of 3.2 million households that could be targeted in such efforts by directing marketing just to four new areas. Bay County recently approved a one-cent (one percent) bed-tax increase for the same purpose.
Mares told the commissioners that Walton County needs the additional one percent in bed taxes because shifting existing funding from current marketing efforts would damage those efforts.
The resolution from the TDC that was presented to the commissioners stated the purpose of the increase as “supporting low cost air service into the region at either Okaloosa County Airport or Bay County Airport through promotion and advertising of Beaches of South Walton Tourism and such air service in new, developing markets.” However, there was no mention, either by the tourism officials or anyone else speaking at the May 11 meeting, of the Okaloosa County Airport or any specific air carrier other than Southwest Airlines.
More than two dozen people, including many tourism leaders and bed-tax collectors, stood when Mares asked for a show of support. Mares also presented the commissioners with letters supporting the half-cent increase, written by representatives of Hampton Inn & Suites, Sandestin Golf and Beach Resort, Rosemary Beach, the Hilton Sandestin, Beach Rentals of South Walton, One Seagrove Place, Alys Beach, WaterColor, Seaside, and Resort Quest. Included was a resolution of support from the Walton County Chamber of Commerce, and Dawn Moliterno, chamber executive director/CEO commented that not one of her organization’s more than 1,300 members had indicated opposition to the increase.
Moliterno was of the opinion that the increase would result in more job opportunities in the local area. “We need to say yes to business and we need to say yes to Southwest,” she urged.
The Walton County Taxpayers Association (WCTA) had also gone on record in support of ” the initiative to partner with a low-cost airline which will open new markets and generate economic development for our entire coastal region,” as stated in a letter signed by association president Bob Hudson.
“The TDC exists to develop tourism, and a low-cost airline is a major step in tapping new markets,” Hudson’s letter added.
The WCTA’s support was the result of the recent addition of conditions to the imposition of the bed-tax increase, including the October 1 effective date, a sunset on the increase after a five-year period, and arrangements to escrow the new revenue for the specific purpose.
Hudson’s letter encouraged the TDC to “work toward eliminating this temporary tax earlier than five years, if possible.”
The letter added, “Should the low-cost airline deal not materialize, we would hope the sunset would expire immediately.”
Mares noted that more than a 54-percent occupancy rate had never been achieved for short-term accommodations in south Walton County. He saw the efforts toward a fly-to market as a means to boost occupancy.
A number of critics of the increase voiced their opinions.
“I feared this,” said Larry Gibson of Tops’l Resort, who was concerned that any tax increase on tourists would “ruin us.”
“How many people is this really going to put in hotels?” Gibson asked.
Suzanne Harris of Edgewater Beach Resort was of the opinion that the increase would not be needed if everyone who was supposed to be paying bed taxes were made to do so. (Martha Ingle, Walton County Clerk of Courts, later commented that a person on her staff is dedicated to collecting bed taxes from property owners who have not been paying them.) Harris warned that tourists were aware of plans for the increase and strongly opposed to it.
“It’s an insult to their intelligence,” Harris asserted.
She was very much in favor of Southwest Airlines and bringing them to the area but thought there were better ways to go about it.
“We need to look for an alternative,” agreed south Walton County resident and property owner Mary Nielson,
South Walton County resident Charlotte Flynt shuddered to think what tourist occupancy of more than 54 percent would be like. “We don’t have the infrastructure to handle it,” she told the commissioners.
“We all want Southwest Airlines,” countered Michael Chouri of the Sandestin Beach Hilton. Chouri told the BCC that the airline would not come to the area “unless you entice them,” adding that it will not be possible to do that without the bed-tax increase.
Citizen Bonnie McQuiston reasoned that, if one takes the position that more tourists are not needed, then there is no reason for a TDC. She added that if these efforts double or triple the occupancy rate, it may be necessary to sunset the increase sooner than the five-year period. She was upbeat about the possibility of Southwest Airline coming to the area, saying she was tired of paying more to fly on other airlines with service that was not up to Southwest’s standards.
District 3 Commissioner Larry Jones moved for approval on the half-cent increase with attached conditions, based on the 70-percent support of the measure among bed-tax collectors that Mares had indicated.
His motion was approved by unanimous vote.