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

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

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.
 
Resortquest supports 12.5% tourist lodging tax increase.

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?
 
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


:blink:....Math, according to the TDC:

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"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?>


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

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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.
 
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.
 
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