- April 19, 2024
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County Commissioners at a meeting March 6 favored a proposal to add an additional 1% of tourist sales tax. But they didn't vote on the plan, because Commissioner Donald O'Brien suggested a tweak: increasing the percentage of tourist tax money set aside for beach restoration, while lowering the percentage allotted for promotional activity.
The board decided to study O'Brien's proposal and hold a vote in the future.
The county's rationale for adding the 1% of tax — which would largely affect tourists staying at county hotels, motels and vacation rentals — has been to raise additional money for beach restoration projects to repair damage to county beaches caused by Hurricane Matthew. The county expects grants from state and federal agencies, but may have to match those grants with money of its own.
The current tourist tax rate in Flagler County is 4%. The proposal initially considered by the County Commission at a special meeting with the county's Tourism Development Council Feb. 20 would have added an additional 1%, and also rearranged the way the tourist tax money would be split between the three funds it's funneled into.
The proposal the board heard Feb. 20 and considered again March 6, put forward by county tourism chief Matt Dunn, would have raised the beach restoration fund's share of the money to 40% the first year, 30% the following year and 20% the third year, but kept the promotions fund's share — which is overseen by Dunn and the Tourist Development Council — at 60% each year. The third fund, a capital projects fund, would get nothing the first year, 10% the second year and 20% the third year.
That plan gives the beach restoration fund much more money than it has been getting — the current allocation has been 11.25% of the total to the beach fund, 22.5% to capital projects and 66.25% to promotions — but also adds about $200,000 to the promotions fund.
O'Brien suggested shifting more money during the first year toward beach restoration and cutting back funding for the promotions fund, which has a $1.3 million surplus.
He proposed that during the first year, 60% of the money should go to beach restoration (an estimated $1.5 million), and 40% to promotions (an estimated $1 million), rather than the other way around, as Dunn had proposed.
County commissioners Gregory Hansen, Charlie Ericksen and Dave Sullivan liked O'Brien's proposal. But County Commissioner Nate McLaughlin, who chairs the Tourist Development Council, said he'd like to have a chance to consider O'Brien's proposal before voting on it.
He proposed a joint workshop between the County Commission and the Tourist Development Council on O'Brien's proposal.
The other commissioners agreed to the meeting. It will be held at 1 p.m. March 20.
