We are coming down for our first extended stay [the full month of July] and I was curious to hear if there were any festivals/bars offering reggae music during the middle of the Summer?
I don't know of any festivals in July, but there are a couple of bar/restaurants in Panama City Beach that feature live reggae on a regular basis.
Reggae J's is in Pier Park and they have reggae on Fri, Sat & Sun nights. Sometimes they have an additonal show on Sat or Sun afternoon. Great view of the beach, especially from second floor.
About 10 minutes to the East is Willy's Pier Bar, which is part of Pineapple Willy's on Thomas Drive. They have blues bands on Thur-Sat. and reggae Sun -Wed. The Sunday show is from 2-5 in the afternoon and is great fun. The club is directly on the beach with a great view. They open the garage doors and it's really a good time. You can stay in the club or bring your chairs and sit on the beach. They have a good selection of beer and frozen drinks. They had these shows all of April and May, so I assume they will continue.