Tourist development honeypot – more than a few dollars

How much money are we talking about collecting from “bed tax” paid by overnight visitors to St. Johns County?

First established by County ordinance 86-72, the “bed tax” or Local Option Tourist Development Tax is assessed on short-term transient rentals. Hotel, motel rooms, campground spaces, condominiums, apartments and even private home rentals are subject to the tax if they are rented for six months or less. The current level of the county-wide tax is three percent which generates approximately $5 million annually, Chapter 125.0104 Florida Statutes is the state enabling legislation which includes procedures for implementing the tax and how the proceeds can be used among other things.

For Fiscal Year 2013, the Tourist Development Council oversees a budget of $8,938,922.

$1,769,896 is budgeted for administration and special uses
Funds tourism related infrastructure improvements such as the St. Augustine Amphitheatre and the St. Johns County Convention Center, and provides financial support for certain significant special events like THE PLAYERS Championship and Nights of Lights, and funds Administrative and Operational expenses.

$3,473,470 is budgeted for destination marketing (Category 1)
The County has a contract with the St. Johns County Visitors and Convention Bureau (VCB), which is a not-for-profit corporation made up of more than 200 tourism businesses from around the county. As part of its agreement, the VCB is responsible for developing and implementing an annual marketing plan promoting St. Johns County worldwide as a desirable visitor destination. VCB partners also leverage the County’s marketing dollars through co-op advertising, trade-show participation and by providing complimentary or low-cost goods and services for visiting travel writers, tour operators, meeting planners and other travel industry professionals.

$2,284,644 is budgeted for arts, culture and heritage (Category 2)
Through Arts and Culture programs, TDC funds enhance the visitor experience and contribute to residents’ quality of life. Each year, approximately 40 cultural heritage and cultural arts programs including historic reenactments, museum programs and performing and visual arts programs are presented throughout the County with the financial assistance of the TDC. A seven member Funding Panel is appointed by the Board of County Commissioners to review and make recommendations regarding the numerous requests received every year for funding.

$1,410,912 is budgeted for leisure and recreation (Category 3)
TDC programs under Leisure and Recreation are managed by the County’s Parks and Recreation Department and have included capital projects such as fishing piers, boat ramps and beach re-nourishment and maintenance. Sporting events such as the Triple Crown Sports baseball tournament and the St. Augustine Amateur golf tournament also receive TDC Category 3 funding.
A TDC funded sports event grant program is administered by SJC Parks & Recreation Department.

How the tax is apportioned: Forty percent (40%), plus all of an additional 1% tax added in 1991, going to advertising and promotion, thirty percent (30%) going to culture and special events, and thirty percent (30%) going to beaches and recreation.

Of the nearly $2.3 million in Category II, the Board of County Commissioners returns only $550,000 to non-profit organizations to assist in the production and marketing of artistic, cultural and heritage activities.

The Board appoints a nine-member Council to administer the annual budget, but they are limited to making “recommendations” only — the Board must approve their expenditures and is ultimately liable for their compliance with state law.  All TDC activities are subject to audit by the chief financial officer and Clerk of Court, Cheryl Strickland.

The Council has a funding panel to pre-screen and identify those applications for grants that best qualify for funding according to state law and presumably “objective” guidelines.  Before applicants reach the funding panel, the St Johns Cultural Council has been contracted to pre-screen the pre-screen; offering grant writing advice and a mandatory training seminar before groups can make an application.