Bed tax collections rise sharply

PANAMA CITY BEACH — Bed tax collections for June this year have shot through the roof.

In fact, June 2011 collections were the second highest of any month in any year in the history of the beach, officials said Thursday. Only July 2009 was historically higher, and then only by about $19,000.

Not only were collections up 21 percent over June 2010, which might have been expected because of last year’s oil fears, but tax revenue was up $337,668.80 over June 2009.

“It is substantial,” said Dan Rowe, executive director of the Bay County Tourist Development Council (TDC). “This is just going to be a record-breaking year.”

Collections for June 2011 totaled $2,283,706.72 compared to $1,884,269.21 last year, an increase of $399,437.51, or 21.2 percent. June collections in 2009 totaled $1,946,037.92, according to Charlene Honnen, Bay County tourist development tax specialist.

Although bed collections from this July have not yet been tabulated, anecdotal evidence from many resort and condo managers suggest July numbers will overtake June, especially because of the crowded July 4 weekend.

“I think July will be off the charts,” Rowe said.

The bed tax numbers are a key indicator that the area’s tourism industry is strongly emerging from the dark shadow of last year’s April 20 Deepwater Horizon oil disaster, when bed taxes in June, July and August 2010 slipped 3.7, 14.5 and 14.7 percent, respectively, from 2009 levels.

Because of last year’s drop in tourism, the TDC reported only a 1.8 percent bed tax increase for all of 2010, about 19 percent lower than expected.

“The beach has had a tough go of it,” Rowe said, noting the fall-off in the economy, gas hikes and then the 2010 oil spill. “It’s good to see that people are back, spending money, and that businesses are doing well.”

So far this year, collections for the past three months have been up 22.61, 4.78 and now 21.2 percent, respectively, over April, May and June 2010 numbers.