Bed tax hike proposed



Peter Guinta
peter.guinta@staugustine.com
Publication Date: 07/24/07
 

 

St. Johns County officials -- perhaps figuring that the best tax is one their constituents won't have to pay -- will explore raising the county's current bed tax from 3 percent to 5 percent next year.

This increase would raise an additional $3.8 million per year, and be the first bed tax increase since 1990.

The new proceeds would pay for brick-and-mortar cultural structures, funding for arts programs, and financial support for amphitheater shows, among many other categories.

But still unexplained is the money earmarked for a new conference or convention center in Vilano Beach. No details about that were released.

Also unexplained is why the $12 million amphitheater renovation would need additional work of any kind. The multi-year renovation is almost complete.

In addition, some proposed uses for the money, such as "entertainment," are so nebulous they have not yet been defined by anyone.

Tom Manuel, vice chairman of the County Commission, said the idea to raise bed taxes came up during the commission's line-by-line review of its spending.

"We found that the Tourist Development Council has significant resources," Manuel said. "We started exploring different alternatives to increase the number of day trips and overnight stays (of visitors to St. Johns County). That's where the money is."

The hike, if passed, would go into effect in 2009.

Philip McDaniel, president of St. Johns County Cultural Council, said the county is studying some other communities to see how they created a "strong, vibrant arts community" with bed tax dollars.

"If we can take some of that money and invest it in a cultural arts infrastructure, people will stay here longer," McDaniel said.

Visitors might stay an extra day if there are cultural events available at night, such as plays or concerts, "after they've come in from the beach or golf course and had dinner," he said.

The TDC collects $6 million annually from motel, hotel and bed-and-breakfast inn customers.

Of that total, $3.3 million is spent promoting St. Johns as a tourist destination, running visitor Web sites and publishing printed materials. Another $900,000 supports local arts and cultural events, such as music festivals, $1.3 million is spent on beach renourishment and $600,000 on administrative costs.

TDC Chairman Glenn Hastings said his board of directors decided it would hold a public hearing on the increase, though a date is not set.

However, no one so far has expressed adamant opposition, Hastings said.

"The board said, 'Let's see what we can work out here.' The indicators are that they are open-minded about it at this point," he said.

Manuel said the commission would probably urge the TDC to hire a consultant who would examine the issue and make recommendations. The board would then make its own recommendation to the County Commission.

The commission can pass it with a super-majority vote, which is four of the five commissioners approving.

Troy Blevins, county director of recreation and parks, said Duval and Volusia counties both have 6 percent bed taxes and 7 percent sales taxes.

"With us at 3 percent, we were leaving a lot of money on the table," he said. "Key West has a 7 percent sales tax, 6 percent bed tax and a 5 percent occupancy tax. Their visitors pay 18 percent."

The bed tax was passed in the mid-1980s at 2 percent, raised an additional percent in 1990 and then left untouched.

The extra money could be spent to extend St. Augustine Beach pier, support the habitat conservation plan, fix up Stetson Kennedy's historic home in the Northwest and help with the amphitheater, among other projects, he said.

"The beaches are our Number One asset to attract tourism," he said. "There are a lot of benefits that will come from this (money). It won't hurt local folks."


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