Item Q01
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: MARCH 18, 2009
Division:
TDC
Bulk Item: Yes
No: Public Hearin2 Set for 3:00 p.m.
Staff Contact Person/Phone #: Maxine Pacini - 296-1552
AGENDA ITEM WORDING:
Approval ofan ordinance amending sections 2-297(A) and 2-300(A) and (B) of the Monroe County
Code.
ITEM BACKGROUND:
The intent of this ordinance is to add a fourth cent tourist development tax; amending the tourist
development plan in sections 2-297(A) and 2-300(A) and (B) of the Monroe County Code; providing
for severability; providing for the repeal of all ordinances inconsistent herewith; providing for
incorporation into the Monroe County Code of ordinances; and providing an effective date. On
January 27, 2009, the Tourist Development Council unanimously voted to recommend approval of the
ordinance to the Board of County Commissioners.
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
Not applicable
ST AFF RECOMMENDATIONS:
Approval
TOT AL COST:N/ A INDIRECT COST: N/ A BUDGETED: N/ A
COST TO COUNTY: N/A SOURCE OF FUNDS: TDC
REVENUE PRODUCING: Yes -X- No
AMOUNT PER YEAR: $3.8 - $4.5 million
APPROVED BY: County Arty ~ OMB/Purchasing X
Risk Management N/ A
DOCUMENT A TION:
Included X
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 1/09
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
REVISED
Meeting Date: MARCH 18. 2009
Division:
TDC
Bulk Item: Yes
No: Public Hearin2 Set for 3:00 p.m.
Staff Contact Person/Phone #: Maxine Pacini - 296-1552
AGENDA ITEM WORDING:
Approval of an ordinance amending sections 23-197(A) and 23-200(A) and (B) of the Monroe County
Code.
ITEM BACKGROUND:
The intent of this ordinance is to add a fourth cent tourist development tax; amending the tourist
development plan in sections 23-197(A) and 23-200(A) and (B) of the Monroe County Code; providing
for severability; providing for the repeal of all ordinances inconsistent herewith; providing for
incorporation into the Monroe County Code of ordinances; and providing an effective date. On
January 27,2009, the Tourist Development Council unanimously voted to recommend approval of the
ordinance to the Board of County Commissioners.
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
Not applicable
STAFF RECOMMENDATIONS:
Approval
TOTAL COST:N/A INDIRECT COST: N/A BUDGETED: N/A
COST TO COUNTY: N/A SOURCE OF FUNDS: TDC
REVENUE PRODUCING: Yes ---K- No
AMOUNT PER YEAR: $3.8 - $4.5 million
APPROVED BY: County Atty --K- OMB/Purchasing X
Risk Management N/ A
DOCUMENTATION:
Inel uded X
Not Required_
AGENDAITEM#~
DISPOSITION:
Revised 1/09
The
Floridd Keys
& ~e'y ~~! dfe'
'.-
The Monroe County Tourist Development Council (TDC) has approved an additional 1
percent Tourist Development Tax that would be used for marketing the Florida Keys tourism
product.
Currently, lodging properties collect and remit three pennies (3 percent) in Tourist
Development Taxes and one penny (1 percent) in Tourist Impact Taxes for each dollar a
visitor spends on transient accommodations.
The TDC markets the Florida Keys & Key West via the three pennies collected as tourist
development taxes.
The TDC has approved an additional 1 percent tax because:
1) The current percent of Tourist Development Tax collected for marketing the Florida
Keys & Key West (3 percent) has not increased in more than 20 years. Meanwhile,
the destination's competitors - both domestically and globally - have increased
their marketing budgets to remain competitive in the tourism marketplace. In fact, 28
other Florida counties levy four Tourist Development Tax pennies or more for
promotional use.
2) Monroe County is under a moratorium prohibiting creation of new hotel transient
units. Unlike many competitors, the Keys' marketing funds cannot grow through the
creation of new lodging units. Growth in marketing funds can only be derived when
the existing, limited pool of transient units generates more revenue; whether that is
renovation of existing stock and/or rate increases. While the Keys have been
fortunate to have traditional increases in lodging rates to provide growth in marketing
funds, there is a limit to how much consumers will absorb hotel rate increases.
3) The future of tourism in Monroe County is dependent upon an ability to remain a top
desired destination for travelers among increasingly global competition. As tourism is
the region's largest industry and largest employer, the region's future is intrinsically
tied to its growth. Marketing the Florida Keys & Key West is critical to the success of
the industry and community. Under state statues, Monroe County may levy one more
additional penny in Tourist Development Tax, for a total of four pennies. Beyond that,
the development of a convention center or sporting facility would be needed to enable
the county to collect another additional Tourist Development Tax. If the industry does
not levy an additional Tourist Development Tax penny for marketing at this time, and
that penny is instead allowed by a change in the State Statute to be used for funding
other sources, there is likely to be no more options for protecting Keys marketing
resources from stagnation or decline. The TDC would be limited to the current three-
penny revenue sources.
The TOC has approved the allocation of this penny to be directed to the individual district
marketing programs. Currently, two pennies are allocated for generic destination funding;
that is marketing all the Keys regions on a collective basis. The third penny is allocated to
individual marketing of each of five districts, including Key Largo, Islamorada, Marathon, Big
Pine Key & the Lower Keys and Key West.
If approved, as recommended by the TOC, the additional fourth penny would be allocated
directly back to the district in which it is raised and be authorized for the same uses as the
current third penny. The district would now have two pennies to fund their marketing budget.
It would take an extraordinary vote (4 of the 5) of the Soard of County Commissioners
(SOCC) to pass the additional penny by amending the current Monroe County code. The
effective date of the levy and imposition of the tax authorized under the ordinance shall be
the first day of the second month following approval of the ordinance of the SOCC. The
TOC is recommending June 1, 2009 as the date to begin the imposition of the tax.
ORDINANCE NO. -2009
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, AMENDING SECTION 23- 197(A) OF THE
MONROE COUNTY CODE TO ADD A FOURTH CENT TOURIST
DEVELOPMENT TAX; AMENDING THE TOURIST DEVELOPMENT PLAN IN
SECTION 23-2 OO(A) AND (B) OF THE MONROE COUNTY CODE;
PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL
ORDINANCES INCONSISTENT HEREWITH; PROVIDING FOR
INCORPORATION INTO THE MONROE COUNTY CODE OF ORDINANCES;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, since 1988, Monroe County has collected three pennies of tourist
development tax; and
WHEREAS, the economy of the Florida Keys is heavily dependent on the
success of the lodging and tourism industries for its health; and
WHEREAS, Section 125.0104(3)(m), Florida Statutes, part of the Florida
Local Option Tourist Development Act, permits the Board of County Commissioners
to levy an additional one cent tourist development tax in the manner prescribed in
the statute; and
WHEREAS, Monroe County qualifies as a high tourism impact county based
on Florida Department of Revenue information for calendar years 2007 and 2008;
and
WHEREAS, it is desirable to put into place at this time an additional one cent
tourist development tax in order to provide additional revenue for any of the
acceptable purposes listed under Section 125.0104(5), Florida Statutes;
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA, AS FOLLOWS:
[PROPOSED TEXT CHANGES are presented in strikethrough to indicate
deletions and underline to indicate additions.]
Section 1. Section 23-~ 197(Aa) of the Monroe County Code is hereby
amended to read as follows:
(A) There shall be levied through the incorporated and
unincorporated areas of Monroe County, Florida, a tourist development
tax at a rate of three (3) four (4) percent of each whole and major
fraction of each dollar of the total rental charged every person who
rents, leases or lets for consideration any living quarters or
accommodations in any hotel, apartment hotel, motel, resort motel,
apartment motel, rooming house, tourist or trailer camp or
condominium for a term of six (6) months or less. When receipt of
consideration is by way of property other than money, the tax shall be
levied on the fair market value of such nonmonetary consideration.
Section 2.
to read as follows:
(Aa)
(1 )
(2)
Section 23-J200(Aa), Monroe County Code, is hereby amended
Authorized Uses of Revenue.
The first two cents ($0.02) of the three four-cent tax shall be
spent:
(a) To promote and advertise Monroe County tourism within
domestic and international markets.
(b) To promote county festivals, tournaments, races and
other tourist-related activities.
(c) To promote county tourist-oriented cultural events such
as visual and performing arts, including but not limited to
theater, concerts, recitals, opera, dance, and art
exhibitions.
The third cent ($0.03) and the fourth cent ($0.04) of the three
four-cent tax shall be spent:
(a) To acquire, construct, extend, enlarge, remodel, repair,
improve, maintain, operate or promote one (1) or more
publicly owned and operated convention centers, sports
stadiums, sports arenas, coliseums or auditoriums, within
the boundaries of the county or sub-county special taxing
district in which the tax is levied.
(b) To acquire, construct, extend, enlarge, remodel, repair,
improve, maintain, operate or promote one (1) or more
museums, zoological parks, fishing piers or nature
centers which are publicly owned and operated by not-
for-profit organizations and open to the public. However,
these purposes may be implemented through service
contracts and leases with persons who maintain and
operate adequate existing facilities.
(c) To fund convention bureaus, tourist bureaus, tourist
information centers, and news bureaus as county
agencies or by contract with the chambers of commerce
or similar association in the county.
(d) To finance beach improvement, maintenance,
renourishment, restoration, and erosion control.
(e) To finance fishing piers.
(f) To advertise and promote the district and/or the county
within domestic and international markets.
(g) To promote county festivals, tournaments, races and
other tourist-related activities.
(h) To promote county tourist-oriented cultural events such
as visual and performing arts, including but not limited to
2
theater, concerts, recitals, opera, dance, and art
exhibitions.
Section 3. Section 23-~200(gb)(5) through (8), Monroe County Code, are
hereby amended to read as follows:
(5) Five (5) percent of the third- and fourth-cent gross revenue shall
be held outside of the receipts division of the budget as per
Section 129.01, Florida Statutes.
(6) Up to three (3) percent of the third- and fourth-cent net revenue
shall be maintained for administration of third- and fourth-cent
expenditures.
(7) Upon recommendation of the advisory board for the district, the
remaining balance of the third- and fourth-cent net revenue shall
be expended for the district from which it is generated for the
purposes authorized in subsection (A)(2), above, but the
advisory board shall have no final authority to require
implementation of its recommendation.
(8) A separate account shall be established for the administration of
the third- and fourth-cent gross revenues.
Section 3. If any section, subsection, sentence, clause, or provision of this
ordinance is held invalid, the remainder of this ordinance shall not be affected such
invalidity.
Section 4. All ordinances or parts of ordinances in conflict with this
ordinance are hereby repealed to the extent of the conflict.
Section 5. The provisions of this ordinance shall be included and
incorporated in the Code of Ordinances in the County of Monroe, Florida, as
additions or amendments thereto.
Section 6. This ordinance shall take effect immediately upon receipt of
official notice from the Office of the Secretary of State of the State of Florida that this
ordinance has been filed with said Office. The effective date of the levy and
imposition of the tax authorized under this ordinance shall be the first day of the
second month following approval of the ordinance of the Board of County
Commissioners.
3
PASSED AND ADOPTED by the Board of County Commissioners of Monroe
County, Florida, at a regular meeting of said Board held on the _ day of March, 2009.
Mayor George Neugent
Mayor Pro T em Sylvia Murphy
Commissioner Kim Wigington
Commissioner Heather Carruthers
Commissioner Mario Di Gennaro
(SEAL)
Attest: DANNY L. KOLHAGE, Clerk
BOARD OF COUNTY
COMMISSIONERS OF MONROE
COUNTY, FLORIDA
By: Deputy Clerk
By: Mayor/Chairperson
4
SuaaDe A. HuttoD, Couty Attonaey**
RQbcrt B. Shillinacr. Chief ASIistant CQunty Aaomey ..
Pedro 1. MG'CIdo. ASIistant County AUOmcy
SUMD M. 0rima1cy. Assimnt County Auomey *.
NaGlecu W. CuaeI. Assistant County Attorney
~t:bia 1. Hall) .A.ui.llant County Attorney
Chrittinc L1mbert-Batzowa, Assistant County Attorney
Derek V. Howard, ASIistant County Auomey
(.---
Ri\&DD OF N\r MrI'V NUIUTCCYlW-"
Mayor George Neugent, DisCrict 2
Mayor Pro Tem SyMa J. Murphy, Ol$trfct S
10m WagjngtDn, District 1
HaU\er Clrruthets, District 3
Mane Oi Gennaro, 0Cstric:t 4
O~~d:~~E
(3C5)~1
- 'j\
.' '.' '. ..,~.
.' .
.
Office of the Couty AttorDey
1111 12 III Street, Suite 4{)8
Key West, FL 33040
(305) 292-3470 - Phone
(305) 292-3516 - Fax
. ..-. ;. J...... . i
- .
-". .,.
** ao.rd CcrtiW ill City) Coumy 4: Local Cioyt Law
January 15,2009
Mr. Harold Wheeler
Tourist Development Council
1201 White Street, Ste. 102
K.eyW~ FL33040
RE: PrQDOsed Fourth Penny Tourist DevelQnment Tax
Dear Mr. Wheeler:
You have asked me for an opinion regarding the acceptable uses for the.levy of a fourth-penny tourist
development tax ("TOT). The proposed ordinance states that the fourth-penny would be levied
pursuant to Section 125.0104{m), Florida Statutes. Subsection (m)l. states that in addition to any other
tax levied under Section 125.0104 (the "Local Option Tourist Development Tax Act''), a high tourism
impact county may impose one additional penny of tax on rentals as defined in subsection (3Xa).
To qualify as a "high tourism impact countyn, a county must have (a) sales subject to TDT in excess of
$600M per caleadar year or (b) sales subject to the TDT greater than $200M and equal to at least 18%
of total taxable sales as defined by Chapter 212, Florida Statutes. Based on calendar year (CY) 2007
information from Florida Department of Revenue, Monroe County appears to qualify under both
criteria. Sales in Monroe County subject to the TOT in CY 2007 were $665M, and sales subject to the
roT in CY 2007 represented 26% of total taxable sales as defined by Chapter 212.
Sub-subsection (m) states that the tax raised under that section can be used for any of the pwposes
listed in 125.0]04(5). There are four enumerated purposes in (5), two of which involve capital
improvements: To "acquire, const:ruct, extend, enlarge. . . convention centers. . . auditoriums. . .
m~l"1s" [Section 125.0104{S)(a)l.] and to ''finance beach park facilities or beach improvemenf',
etc. [Section 12S.0104(S)(a)4.].
Accordingly, it is my opinion that the proposed ordinance could be used to levy an additional penny of
tourist development tax, and that this additional revenue could be used to fund any of the acceptable
purposes listed in Section 125.0104(5), Florida Statutes, including the capital improvements listed in
that subsection. Any ordinance enacted pursuant to this section would not require a referendum, but
Mr. Harold Wheeler
January IS, 2009
Page 2
per Monroe County Code Section 2-313 would require a four-fifths majority vote of the Board of
County Commissioners. Florida Statutes Section 12S.0104(3Xm) provides that the effective date of
the levy would the first day of the second month after the governing board approves the ordinance.
The statute also provides that once a county qualifies as a high tourism impact county, it retains that
designation for the period of time that the tax is levied.
The designation of Monroe County as a high tourism impact county is corroborated by the 2008 Local
Government Financial Infonnation Handbook issued by the Florida Legislative Committee on
Intcrgovsnmet1ta1 Relations. Page 249 of that book states that Monroe County has been designated as
a hiih tourism impact county. I am attaching a copy of the pertinent pages for reference.
Please feel free to contact me should you have any questions.
~. ly,
· 1.M
Cynthia L. Hall
AssiStant County Attomey
Cc: SU7.Anne A. HUUOIlt County Attorney
2008
Local Government Financial
Information Handbook
September 2008
Florida
Legislative Commlttee on Intergovernmental Relations
F/()rldiz Lettitlatiw COmlllirue on In/UKovemmenlQJ Relations
ffigh Tourism Impact Tax
Section 125.0104(3)(m). Florida Statutes
Brief Overview
In addition to any other tourist development tax imposed, a high tourism impact county may levy an
additional 1 ~t tax on the total consideration charged for transient rental transactions. The tax
sball be 1evied pursuant to an orrt;n~ce adopted by an extraordinary vote of the county's governing
body. The proceeds are to be used for one or more of the authorized uses pursuant to s. 125.0104(5).
F.S. 'I'U provisions in s. 125.0104(4). F.S.. regarding the preparation of the county tourist
development plan shall not be applicable to this tax.
A county is ~idered to be a high tourism impact county after the Department of Revenue has
certified to the county that its sales subject to the tax exceeded $600 million during the previous
ca)4mtllr year or were at least 18 percent of the county's total taxable sales under ch. 212. F.S..
where the sales subject to the tax were a minimum of $200 million. Once a county receives this
desipatioD, it sball retain this designation for the period of time that the tax is levied. No county
authorized to levy a convention development tax shall be considered a high tourism impact county.
C01lDti_ E)i~hle to Levv
MoDrOe. Druge, and Osceola counties have been designated as high tourism impact counties.
A.tho....'.... U.. of PrNaMd.
Ally use of the tax proceeds not expressly authorized is prohibited.1 'The county sball only use the
tax proceeds for the followm, pwposea.
1. To acquire. CODStIUct, extend, enlarge, remodel, repair. improve. mA;nm;". operate.
or promote one or more publicly owned and openued convention centers, spol1s
stadiums, sports anmas. coliseums, or auditoriums or m1JSl"!1TnS that are publicly
owned and operated or owned and operated by non-profit organizations and open to
the public, within the boundaries of the county or subcoUDty special taxing district in
which the tax is levied. The tax revenues may also be used for promotion of
zoological parks that are publicly owned aod operated or owned and opemted by not-
for-profit organizations and open to the public. Howev<<. these pwposes may be
implemented through service contracts aod leases with lessees with sufficient
expertise or financial capability to opemte such facilities.
2. To promote and advertise tourism in Florida, nationally and internationally.
However. if the tax revenues are expended for an activity. service. venue. or event,
1. Section 125.0104(5)(d). F.S. (2008).
2008 l<<DI Gowmmem FinanciDllnjonnation Handbook
149
F/orid4 uJlisIDtiw CclJU'llitUe on InterflOl101l1l'le1lUli Rel4.tioAf
such activity, service, venue, or event shall have as one of its main purposes the
attraction of tourists as evidenced by the promotion of the activity, service, venue, or
event to tourists.
3. To fund convention bureaus, tourist bweaus, tourist information centers, and news
bureaus as county agencies or by contract with the chambers of commerce or similar
associations in the county. This may include any indirect administrative costs for
services performed by the county on behalf of the promotion agency.
4. To finAn~.e beach park facilities or beach improvement, maintenance, renourishmem,
restoration, and erosion control, including shoreline protection, enlu!lnl".eu1em,
cleanup, or restoration of inland lakes and rivers to which there is public access as
those uses relate to the physical presavanon of the beach, shoreline, or inland lake or
riVet. However, any funds identified by a county as the local matching source for
beach renourimment restoration, or erosion control projects included in the IoDl-
ranse budget plan of the state's Beach Management Plan, pW'SUaDt to s. 161.091,
F.S., or tbnds contractually oblipted by a county in the financial plan for a federally
authorized shore protection project may not be used or loaned for any other pwpose.
In counties having a total population less than 100,000, no more than 10 percent of
tourist development tax revenues may be used tOr beach park facilities.
A county, having a total population less than 750,000, may also use the proceeds to acquire,
construc~ extend, enlarge, remodel, repair, improve, maintain, operate, or promote one or more
zoological parks, fishing piers, or nature centers that are publicly owned and operated or owned and
operated by not-for-profit orgaDiationa aDd opCll to the public. All population figures relating to this
authority shall be based on the most recent official population estimates, pursuant to s. 186.901, F. S.
These population esti,..,Ates shaI1 be those in effect on July 1 It of each year.
FiDally, the proceeds may be pledged to secure and liquidate revenue bonds issued by the county for
the pwposes set forth in I. 125.0104(5)(a)l. and 4., F.S., or to refund bonds previously issued for
such purposes or both. However, no more than 50 percent of the proceeds may be pledged to secure
and liquidate revenue bonds or revenue refunding bonds previously issued for the purpose set tOrth
in.. 125.0104(5)(a)4., F.S. Such revenue bonds and revenue refimding bonds maybe authorized and
issuod in such priDcipal amounts, with such interest rates and maturity date~ and subject to such
other terms, conditions, and covenants as the county's gove.ming board shall provide.
250
2008 Local Government Financiallnlormalion Handbook
Total Lodging Tax Rates by Florida County
Total Lodging
County Sales Tax Bed Tax Tax Rate
Alachua 6.25% 3.0% 9.25%
Baker 7.00% 2.0% 9.00%
~Bav 6.00% 3.0% 9.00%
Bradford 7.00% 4.0% 11.00%
Brevard 6.00% 5.0% 11.00%
Broward 6.00% 5.0% 11.00%
Calhoun 7.00% 0.0% 7.00%
Charlotte 7.00% 5.0% 12.00%
Citrus 6.00% 3.0% 9.00%
Clay 7.00% 3.0% 10.00%
Comer 6.0004 4.0% 10.00%
Columbia 7.00% 2.0% 9.00%
Ce Sete 7.00% 0.0% 7.00%
Clxie 7.0004 0.0% 7.00%
CuvaJ 7.00% 6.0% 13.00%
Escambia 7.50% 4.0% 11.50%
Flaaler 7.00% 3.0% 10.00%
Franklin 7.00% 2.0% 9.00%
Gadsden 7.00% 2.0% 9.00%
Gilchrist 7.00% 2.0% 9.00%
Glades 7.00% 0.0% 7.00%
Gulf 7.00% 4.0% 11.00%
Hamilton 7.00% 3.0% 10.00%
Hardee 7.00% 0.0% 7.00%
Hernando 6.50% 3.0% 9.50%
Hend_ry 7.00% 3.0% 10.00%
Highlands 7.00% 2.0% 9.00%
Hillsbourough 7.00% 5.0% 12.00%
Holmes 7.00% 2.0% 9.00%
Indian River 7.00% 4.0% 11.00%
Jackson 7.50% 4.0% 11.50%
Jefferson 7.00% 2.0% 9.00%
Lafayette 7.00% 0.0% 7.00%
Lake 7.0004 4.0% 11.00%
Coun
Lee
Leon
Le
Libe
Madison
Manatee
Marion
Martin
Miami-Cade
Monroe
Nassau
OkaJoosa
Okeechobee
Oran e
Osceola
Palm Beach
Pasco
Pinellas
POlk
Putnam
Saint Johns
Saint Lucie
Santa Rosa
Sarasota
Seminole
Sumter
Suwannee
Ta or
Union
Volusia
WakuUa
Walton
Washin ton
Total Lodging
Sales Tax Bed Tax Tax Ra.
6.00% 5.0% 11.00%
7.50% 4.0% 11.50%
7.00% 2.0% 9.000/0
7.00% 0.0% 7.000/0
7.50% 3.0% 10.50010
6.50% 4.0% 10.50%
6.50% 2.0% 8.50%
6.50% 4.0% 10.50%
7.00% 6.0% 13.00%
7.50% 4.0% 11.50%
7.00% 2.0% 9.00%
6.00010 5.0% 11 .00%
7.00% 3.0% 10.00%
6.50% 6.0% 12.50%
7.00% 6.004 13.00%
6.50% 5.0% 11.500/0
7.00% 2.0% 9.000"
7.00% 5.0% 12.00%
7.00% 5.0% 12.0004
7.00% 2.0% 9.00%
6.00% 3.0% 9.00%
6.50% 5.0% 11.500/0
6.50% 4.0% 10.50%
7.00% 4.0% 11.00%
7.00% 3.0% 10.00%
7.00% 2.0% 9.00%
7.00% 2.0% 9.00%
7.00% 3.0% 10.00%
7.00% 0.0% 7.00%
6.50% 6.0% 12.50%
7.00% 3.0% 10.00%
7.00% 4.0% 11.00%
7.00% 3.0% 10.00%
29 Counties in Florida have 4% or higher Bed Tax. 5 Counties have 12.5% or higher total tax on Lodging
Source: Florida Legislative Committee on Intergovernmental Relations Reports:
2008 Local Ciscretionary Sales Surtax Rates in Florida's Counties
2008 Local Option TourjstlFoood and Beveragel Tax Rates in Florida's Counties
OF TMe: FLORIOA KEVS ANO KEV WEST
January 9, 2009
Mr. Harold Wheeler
Tourist Development Council
1201 White Street #101
Key West, FL 33040
Dear Harold:
The Lodging Association of the Florida Keys and Key West has discussed your proposal for an
additional penny of Tourist Development Tax thoroughly. We have educated and surveyed our
members on this issue because adding any additional taxes during these economic times is a
difficult decision.
Our Association believes that the advertising and promotion facilitated by the bed tax is
essential to the continued success of the Florida Keys as a destination and may be the only
tool the tourism industry can use to emerge from this recession and keep our destination
competitive. Further, we believe that the revenue generated by the tourism industry will trickle
down to the entire community and benefit aU of the residents.
The Lodging Association of the Florida Keys and Key West supports the use of the additional
one penny of Tourist Development Tax to be allocated to district funding as recommended by
the Tourist Development Council staff.
Thank you for your consideration in this matter.
/)2~ t&s:-)/-
Joanna L. Weinhofer
President
3152 Northside Drive - Suite 101 - Key West, FL 33040
Phone: 305-296-4959 Fax: 305-296-1408
VVebsite: keys/odging.org EmaiJ: executiveoffice@keys/odging.org
January 16, 2009
Monroe County Tourist Developmeut Council
1201 While Street. Suite 102
Key W~ FL 33040
Dear TDC Board Members,
Out position on this issue is clear: the Key West IMkeepers Association supports levying the additional
one cent in Tourist Development Taxes as authorized by Florida ~1atute. Funhermore7 we ask that this
increase be allocated to individual districts. In a survey of our members~ over ninety percent expressed
their $Upport of this action.
In these uncertain economic time..~ it i$ important that we remain competitive, and Jower occupancy
and deel ining rates will result in a reduction jn funding. for destination promotion. This could, in turn.
lead to further reductions in ~~ancy. Thi$ downward spiral is something that would resuJt in Jong-
term economic damage to our commWli ty.
It is in the best interest of oW" ind~1ry and. community to ensure that. this does not happen.
::E~-_.__.
Ian J. Whitney
316A Simonton Street. Key West. Rodda 33040
Phone~ 305-295- f 334 Fax: 305-295--1285
WWW.keywestinns.com
( KEY WEST BUSINESS GUILD )
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Supporting and Promoting Key West GLBT & Allied Businesses and
Travel & Tourism Since 1978
PO Box 1208 v 513 Truman Avenue V Key West, FL 33041
(305)-294-4603 Fax (305)-294-3273 www.GayKeyWestFL.com
RESOLUTION OPPOSING USING BED TAX REVENUE FOR PROGRAMS UNRELATED
TO TOURISM MARKET DEVELOPMENT
WHEREAS, tourism is the backbone of and impacts every sector of our local economy; and
WHEREAS, the Tourist Development Tax was created by the legislature to ensure the growth
and survival of this vial industry; and
WHEREAS, the Tourist Development Tax provides vital funding for destination marketing,
public relations, and capitol projects; and
WHEREAS, economic uncertainty, declines in occupancy, and lower lodging rates will result
in a reduction in future bed tax revenues, probably resulting in the need to collect the last
penny authorized by the legislature in order to maintain our current level of tourist
development programs;
THEREFORE BE IT RESOLVED, The Key West Business Guild's Board of Directors once
again expresses strong opposition to using Tourist Development Tax dollars to fund anything
other than programs that maintain and strengthen our tourist-based economy.
FURTHER RESOLVE IN SUPPORT OF COLLECTING THE FINAL PENNY
THE KEY WEST BUSINESS GUILD EXECUTIVE COMMITTEE, ON BEHALF OF THE
BOARD OF DIRECTORS, FURTHER RESOLVES its support for the collection of the
additional, last penny for exclusive use by the Tourist Development Council to market and
promote travel and tourism to the Keys and Key West.
402 WAll ST. · KEY WEST, Fl 33040 · 305-294-2587 · FAX 305-294-7806 . WWW.KEYWESTCHAMBER.ORG
Ms. Rita Irwin, Chairperson
Tourist Development Council
1201 White Street, Suite 102
Key We~ Florida 33040
January 16, 2009
RE: ADDITIONAL TOURIST DEVELOPMENT TAX
Dear Ms. Irwin:
The Boazd of Directors of the Key West Chamber of Commerce supports your
recommendation that the Monroe County Tourist Development Council and the Board of
County Commissioners approve the additional one penny of Tourist Development Tax to
be used for marketing Florida Keys tourism.
We agree that tourism is our largest industry as well as our largest employer and further
agree that attracting visitors to our destination is becoming more competitive in our
global society. Unemployment trends from the Bureau of labor Statistics show that Key
West has almost doubled its unemployment rate from a year ago as has Monroe County.
Use of these funds to bolster marketing efforts during this time of economic crisis in our
country is crucial to maintaining our position as a top national and international tourism
destination and will help keep our workforce at work.
We further agree that this additional penny should be allocated directly back to the
district in which it is raised and used by each district for the same purposes as the third
penny is currently used.
We thank you for your foresight and your stewardship efforts to protect and enhance this
valuable economic engine.
of Commerce
"The mission of the Greater Key West Chamber of Commerce IS to serve its members
and maintain a viable economy for the businesses and working people of Key West."
LOWER KEYS
CHAMBER OF COMMERCE
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P.O. Box 430511
31020 Overseas Highway
Mile Marker 31
Big Pine Key, FL 33043-0511
Phone: (305) 872-2411 Fax: (305) 872-0752
Email: LKChamber@aol.com
Website: www.lowerkeyschamber.com
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January 16, 2009
Mr. Harold Wheeler
Exec uti ve/Marketi ng Director
Monroe County Tourist Development Council
1201 White Street
Key West, Florida 33040
Dear Harold:
The Lower Keys Chamber of Commerce and its Board of Directors who represent 245 businesses and organizations in
the Lower Keys strongly support the additionall percent lodging tax as recommended by the TDC Administrative
Staff which would generate an additional $4.5 million a year and enable the Keys to remain competitive among other
tourism destinations in the state.
The allocation of TDC funds for district-specific advertising, events and or capitol projects directly affects tourism and
the commercial health of businesses in the Lower Keys and this fourth penny will be collected and spent in the five
tourism districts through the District Advisory Committees (DAC) who recommend how the money is to be spent.
This additional penny would also help develop and promote new events and strengthen already existing events which
lower property taxes due to the amount of tax revenue that they inject into the county, i.e., higher sales tax revenue
means lower property tax bills for owners of residential and commercial real estate; lower rents for workers and small
businesses which affects all citizens of Monroe Country.
The Lower Keys Chamber of Commerce Board of Directors believe that the future of tourism in Monroe County is
dependent upon an ability to remain a top destination for travelers since other destinations have taken the initiative to
obtain their share of this group and aggressively marketing the Florida Keys is essential to the success of the industry
and the community which the additional fourth penny will allow; we urge approval of the proposal.
Sincerely,
f: r-(,ca, Garr-ic1cr 'R.odr~
Erica Garrick-Rodriguez
President
February 10. 2009
Greater Marathon Chamber of Commerce & Board of Directors
Marathon Economic Development Panel
12222 Overseas Hwy
Marathon. FL 33050
Monroe County Board of County Commissioners:
The Greater Marathon Chamber of Commerce along with our Economic Development
Panel both strongly urge you to support and pass the fourth penny Tourist Development
Tax as proposed by TDC Director Harold Wheeler. Most recently our DAC III Board
has also voted to pass this important and much needed tax. Such a tax increase wiH
double our annual marketing budget for our district allowing the middle keys to more
heavily market and advertise to potential tourists. It is also important to remember that
this additional tax is paid for by tourists and not locals or business owners. In such
economic times this additional penny tax will work to further support tourism while not
financiaHy impacting businesses and locals.
According to the proposal this additional penny would be allocated back to the district in
which it is raised and be authorized for the same uses as the current third penny. Each
district would now have two pennies to fund their marketing budget. Currently the
majority of counties within Florida allot four or more pennies towards marketing their
destinations; in such a competitive market it is vital the FL Keys are able to be
competitive and effectively market ourselves. In additio~ many other states have
expanded their marketing budgets to increase tourism; so we are now facing new
competition from other destinations' around the United States and world.
Both the Greater Marathon Chamber of Commerce and Economic Development Panel
support this initiative only if the fourth penny is utilized as proposed (same as third
penny; allocated to marketing budget only). We will have to completely revisit this
should an alternative solution or tax source be considered.
We hope you will see this as a positive initiative and method to boost our county and
locaJ economies marketing budget and abilities, and once again urge you to vote YES on
the fourth penny tax "as proposed!"
Most Sincerely & Respectfully,
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Britt Myers .v
Board President, Greater Marathon Chamber of Commerce
Chair. Marathon Economic Development Panel
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Daniel Samcss
Executive Director
Greater Marathon Chamber of Commerce
12222 OvERSEAS HGHWAY. MARATHON, FLORIDA KEYS 33050. (305) 743-5417. FAX (305) 289-0183. (800) 262-7284
E-mail: visitus@ Florida KeysMarathon . com · www.FloridaKeysMarathon.com
'Sport FIShing Capital
of the Wor/dr
83224 Overseas Hwy.
P.O. Sox 915
Islamorada. Fl 33036
(305) 664-4503
(305) 664-4289 fax
(800) FAS-KEYS
infoOisJarnOradachamber.com
www.~.rnoradachamber.oom
SECOIID WEDNESDAY
SOARD MeETINGS
THIRD TUeSDAY
SUSIHESS AmR HOURS
FOURTH WEDNESDAY
lUNCHEO~ ~ErnNG
A
CHAMBER OF COMMERCE
& VISITOR CENTER
January 15,2009
Mr. Harold Wheeler
Monroe County 1DC
1201 White Street
Suite 102
Key West, FL 33040
Dear Mr. Wheeler:
The Islamorada Chamber of Commerce Board of Directors met in
regular session on Wednesday, January 14,2009. Included in the agenda
was the proposed addition of a one percent Tourist Development Tax to
be used for increased towism marketing of the Florida Keys and Keys
West To ensure fair representation, Chamber staff and board members
polled ofall of the lodging facilities and major vacation rental agencies
in Islamorada.
The Board is very pleased with survey's success: we were able to contact
each property and get their feedback and vote. Thirty-six properties
were contacted between mile marker 90 and 72. We are pleased to
. report to you that 81 % of the properties voiced a vote in favor of the
proposed tax increase that would add a fourth penny.that would be
allocated directly back to the district in which it was raised and be
authorized for the same uses as the current third penny. If this measure is
implemented, DAC N will have two pennies to fund its Islamorada
marketing budget.
The Islamorada Chamber of Commerce Board voted unanimously to
support the Monroe County TDC in their efforts to explore and facilitate
the process necessary to add an additional one percent Tourist
Deve ent Tax. We appreciate YOlD' efforts on our behalf and are
P end OlD' complete COOperation and support.
www.islamoradachamber.com
Leoenaarg
KEY LARGO
Chamber of Commerce
101J000 o..s.. HifPny · Ksy Latgo · FL · 33037. 3051451-1414 · Fax: 3051451-4728 . key/atgochamber.OIp
Jan. 13, 2009
Rita Irwin, Chairperson
Tourist Development Coundl
1201 White St., Suite 102
Key West, Florida 33040
Dear Ms. Irwin:
I am writing on behalf of the Key Largo Chamber of Commerce Board of Directors,
who represent 388 business members throughout the Florida Keys, to let you know
that we support the addition of a fourth penny to the tourist development tax in
Monroe County - but only if this additional cent is distributed to each of the five
districts according to the present distribution formula. The majority of hoteliers who
have responded to our request for their opinion on this issue are in favor with the
caveat noted previously.
We recognize that these are difficult economic times and realize that some of our
visitors balk at the additional expense to their hotel biJJs. However, we believe that
obligating the fourth penny for tourism promotion and advertising purposes is the
best way to help our destination recover quickly.
The chamber board believes that adding the extra penny will put the Florida Keys in
a better competitive position, not only among other counties in the state but among
other overseas tropical destinations as well.
The chamber Board of Directors encourages the Tourist Development Council to
support the fourth penny for the bed tax, to be distributed to each of the districts
according to the same formula used now for the third penny, and to forward that
recommendatio to the Board of County Commissioners for its approval.
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"''''Ion .~.nt of the Kev Larao Chamber of Commerce
To develop and actively Promote. vibrant buain... and aoclalenvlronment by ualng the
individual and collectfve power of our m....bershlp.