PANAMA CITY — The City Commission could approve a bed tax for Panama City at its meeting Tuesday.
The proposed tax, already approved by the Panama City Tourist Development Tax Planning Committee, mirrors Panama City Beach’s tax, 5 percent of each dollar for the rent or lease of accommodations.
“We can’t have a different rate,” Interim City Manager Jeff Brown said. “There’s only technically one (Tourist Development Council) in the county.”
If the commission approves the tax, Brown will call the TDC, which is meeting at almost the same time. The tax also must be approved by the County Commission and a majority of city voters before it takes effect.
The PC tourist development plan predicts the city will bring in $2.8 million in revenue in a 24 month period from the tax. The tax can be used for a tourist promotion project including:
-Marketing, social media and public relations campaigns
-Strategies to enhance arts, culture or a historical identity, develop opportunities to penetrate core markets through sales, sports marketing and visitor center activities
-Development of special event and festivals.
-Collaborate with the Panama City Community Redevelopment Agency, Downtown Improvement Board, Chambers of Commerce and TDC to leverage beneficial opportunities.
“It broadly spells it out,” Brown said.
A portion of the tax revenue, between 10 and 15 percent, will go into a Panama City trust fund for the purpose of natural disaster or for an unforeseen promotional opportunity.
The City Commission meeting will be at 8 a.m. Tuesday at City Hall.