PANAMA CITY — Members of a committee tasked with developing a program to drive tourism to Panama City narrowed where the money from a new tax in the city could be spent during their Thursday meeting.
The Panama City Tourist Development Council Plan Advisory Committee had its first peek at draft plans for spending an estimated $2.8 million of additional revenue. The committee tweaked language about reserve funds for a proposed 5 percent “bed tax.” If passed, the tax would be levied on any lodgings of less than six months within Panama City limits.
City officials expect about $2.8 million in additional revenue within the first two years of the bed tax.
The committee agreed 10 to 15 percent should be set aside annually to market the city in the aftermath of an adverse event, like a natural disaster, or to take advantage of an unanticipated opportunity. Once the reserve reaches a balance of $500,000, the reserved percentage could be allocated elsewhere.
The majority of funds will be geared toward promoting Panama City as a tourist destination and encourage overnight stays. Funds can be spent on marketing campaigns or improving the district’s public/private assets like the marinas, public parks, art galleries, shopping opportunities, unique neighborhoods, restaurants and existing events and programs.
The committee also agreed to affix the boundaries of the tax district to Panama City limits at the time it passes a referendum vote.
Which areas will get the lion’s share of funds has yet to be determined. However, they must agree on a two-year spending plan before it can be considered by the City Commission then the Bay County Commission and then, ultimately, Panama City voters.
