County Tourist Development Council recommends additional 1% tourist tax levy, raising total to 5%

The additional 1% is expected to bring in about an extra $500,000 per year.


County Commissioner and TDC Chairman Nate McLaughlin, left, with county commissioners Charlie Ericksen, David Sullivan and Donald O'    Brien (File photo)
County Commissioner and TDC Chairman Nate McLaughlin, left, with county commissioners Charlie Ericksen, David Sullivan and Donald O' Brien (File photo)
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The Flagler County Tourist Development Council voted unanimously at a Feb. 20 special meeting to recommend that the County Commission raise the county's tourist tax levy — paid largely by tourists staying hotels and vacation rentals — from 4% to 5%.

The additional 1% of tax, said Matt Dunn, the county's tourism chief, would bring in about an extra $500,000 per year to the $2 million raised by the other 4%, helping fund beach restoration. The county first imposed the surtax in 1986, at 2%, then added 1% in 2004, and another 1% in 2010.

The total collection has increased 24.6% over the past three years, Dunn said during the meeting.

"Every single year over the past three years we have had a record-breaking collection," Dunn said.

The tourist tax money is split between three different funds: a capital projects fund, a promotions fund and a beach restoration fund. 

Since 2010, the beach restoration fund has gotten the smallest share of the money — 11.25% — while 22.5% has been allocated for capital projects and 66.25% has been allocated for promotions. 

Under the Dunn proposal approved unanimously by the TDC Feb. 20, the portion of the money allotted to beach restoration would be 40% in the coming 2017-2018 fiscal year, then 30% the following year, and 20% the year after that and for following years.

That would bring in $1 million for the beach restoration fund in 2017-2018, then $750,000 in 2018-2919 and $500,000 in subsequent years. 

In the first year, the capital projects fund would get no money and the promotions fund would get 60% ($1.5 million); in the second year, capital projects would get 10% ($250,000) and promotions would get 60% ($1.5 million); and in the third year and subsequent years, capital projects would get 20% ($500,000) and promotions would get 60% ($1.5 million).

The beach restoration money, County Administrator Craig Coffey said, at the meeting, could help the county match any potential matching grant that might come from the state to repair damage caused to local beaches by Hurricane Matthew. 

"We have some (Florida Department of Transportation) money, we have some, potentially, Army Corps (of Engineers) money; we're still struggling to get that funding," he said. "We are working on that, and if that falls through, we'll need more local funding in Flagler Beach to match up with this (Department of Environmental Protection) funding or other funding to make all of this work."

The County Commission will vote at its 9 a.m. March 6 hearing on whether to approve the additional 1%. The proposal requires the approval of a supermajority of four out of the five county commissioners in order to pass. 

 

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