PANAMA CITY — Voters handily approved the city’s bed tax referendum Tuesday by 1,217 to 741, or 62 percent.
“I’m just ecstatic,” Bay Chamber of Commerce Executive Director Carol Roberts said. “The voters came through for us.”
The tax will apply to 5 percent of every dollar of all hotel and short-term condominium and apartment rental bills in Panama City.
Cities such as Panama City Beach and Mexico Beach, already levy bed taxes. Panama City Beach collected about $14 million in from the tax last year.
“If you travel, you expect to have some type of tax tacked onto your bill,” said Andrew Levy, chairman of the Panama City Bed Tax Committee.
The next step for the city will be to establish a nonprofit Tourist Development Council. The City Commission plans to serve as the TDC board.
Panama City Mayor Greg Brudnicki expects the commission will have a workshop soon to start discussing what to do with the projected $1.4 million the city will start collecting in January.
“The planning and work begins,” Brudnicki said. “We’ll make sure we’re prudent and we do the right thing for the city.”
Levy and City Manager Jeff Brown credited the business community with the positive reaction to the tax. Levy said its approval shows the city is encouraging business owners to invest in the community.
“This allows our community to improve the culture, sports and entertainment for the people visiting the community,” Levy said.
Brown said a first expense for the city might be establishing an advertising brand.
“What are we?” he said. “What are we going to be?”