BRADENTON — This November, Manatee County voters will decide whether to approve an additional 1% tourist development tax levy on short-term rentals. County officials are concerned the referendum for the tax increase—also known as a “bed tax”—may struggle to garner voters' support.
The tourist development tax was first enacted by commissioners in 1980 at a rate of 2%. On three separate occasions—in 1986, 2003, and 2009—commissioners approved 1% increases, bringing the tax to its current rate of 5%.
A change in the Florida statute concerning how bed tax increases can be levied now means counties must get approval to levy any increase from voters through a ballot referendum and not through a vote of the county commission as in previous years.
Some officials are concerned that the revised statutory rules' change in how an increase must be approved could challenge its passage if area voters misunderstand the tax as one that would be imposed on local residents.
During an April meeting of the Tourist Development Council (TDC)—an advisory board to the county commission—the council unanimously recommended commissioners approve the increase.
However, a new request had to return to the TDC in June after county officials learned that commissioners were no longer in control of approving a tourist development tax increase. Instead, a referendum would need to go before voters.
During the June TDC meeting, the council again voted unanimously, this time recommending that commissioners approve a referendum that would appear on November’s general election ballot.
In July, commissioners approved adding the referendum to the ballot with a 4-1 vote during a BOCC meeting. Commissioner Kevin Van Ostenbridge was the only commissioner to vote in opposition. Commissioner Jason Bearden was absent.
On Sunday, Sept. 15, a new tab labeled “Yes on 8” appeared at the top of the Manatee County Government’s website. It referred to the Tourist Development Tax Referendum, which will appear on the November ballot as item 8.
Clicking on the tab took website visitors to an informational webpage about the tourist development tax, including what the tax is, who pays it, and what the funds collected can be used for.
On Wednesday, TBT emailed Manatee County Administrator Charlie Bishop to inquire whether the county was officially recommending that area voters support the referendum in November.
Bishop forwarded our request for comment to Elliott Falcione, the director of Manatee County’s Convention and Visitors Bureau.
Falcione did not reply to our email. However, roughly an hour after our inquiry was forwarded to Falcione, the county’s PIO, Bill Logan, sent a statement in response to our inquiry.
“Unfortunately,” Logan wrote in the email, “the County Administrator is unavailable for comment on this matter currently. Additionally, due to the wording of the statute, he would be precluded from making any comment on this matter at this time.”
Logan’s email continued, “The county has no official position on this referendum, but we are making the facts on past-levied tourist tax(es) and their respective benefit(s) to the public available to citizens as appropriate.”
The statement did not mention the “Yes on 8” tab on the county’s website or the informational webpage concerning the tourist development tax, however, sometime within the hour after we received the PIO’s statement, the tab and webpage were removed from mymanatee.org.
Florida Statute, Chapter 106.113, subsection (2), restricts a local government or any representative of it from any expenditure of public funds to advocate for the passage or defeat of any ballot measures to come before voters.
The statute’s language includes that the subsection “applies to a communication initiated by a local government or a person acting on behalf of a local government, irrespective of whether the communication is limited to factual information or advocates for the passage or defeat of an issue, referendum, or amendment.”
The statute further notes that the restrictions do not preclude “a local government or a person acting on behalf of a local government from reporting on official actions of the local government’s governing body in an accurate, fair, and impartial manner; posting factual information on a government website or in printed materials; hosting and providing information at a public forum; providing factual information in response to an inquiry; or providing information as otherwise authorized or required by law.”
Based on the statute’s provisions, officials may have removed the county’s website tab labeled “Yes on 8” over concerns it might conflict with the law.
Speaking to TDC members in June, Falcione told the advisory board, “We were headed to the board of county commissioners for supermajority approval after being certified by the Department of Revenue that we did meet the criteria, but then the breaks went on after being alerted that the state changed the law in 2023 that required an additional bed tax to be a referendum no longer in control of the board of county commissioners.”
“Since then the county attorney’s office revised the ordinance to apply the new state law,” Falcione continued. “This penny (increase), conservatively, will generate $7 to 8 million dollars a year and it’s important that me, as your director, continues to educate the residents about the value of tourism and the value of the tax.”
Falcione also highlighted that any referendum seeking a tourist development tax increase can only be placed on a general election ballot. If the measure were to make it to the ballot but failed to gain the support of area voters, it would be another two years before the county could seek an increase.
Following Falcione’s request that the council approve the revised recommendation to the commissioners, TDC member Jiten Patel questioned how the county would educate citizens about a tourist tax and who pays it.
“Because when they hear the ‘tax’ word,” said Patel, “they don’t want to have it increased, or approve any kind of changes, but when we educate them, that could make an impact on their decision.”
Chair of the TDC, Commissioner Ray Turner, validated Patel's concern.
“You’re exactly right,” Turner said. “Elliott and I have talked about this, and Elliott has a plan for that. If a regular resident—and they’re not up on all these details—if they see an increase in taxes, they will automatically assume it’s a cost to them. Which, in this particular case, it’s a real benefit to us as residents.”
Falcionce also chimed in.
“I’m statutorily hand-cuffed,” he explained. “We can’t be out there promoting this or placing advertisements locally to quote-unquote, ‘sell this.’ However, we can give the TDC, the board of county commissioners, our chambers of commerce, etc., the tools to educate the community on the value of this.”
So, what exactly is the tourist development tax?
The tourist development tax (or “bed tax”) is a tax levied on any short-term rental leased for six months or less. This would include—but is not limited to—apartment or condominium rentals, hotels and motels, single-family homes or vacation rentals, recreational vehicle parks, and/or timeshares.
The tax is paid only by individuals who rent such an accommodation, most often tourists or visitors, but any resident who leases short-term accommodations within the county would also pay the tax.
Currently, Manatee County collects a 5% tourist development tax, but counties that collect over $30 million in tourism tax proceeds and over $600 million in rental revenues can be certified as a “high impact tourism” county by the Florida Department of Revenue. The certification allows a county to levy an additional 1% tax—a “sixth penny."
In February, Manatee County was certified as a high-impact county by the Florida Department of Revenue.
Sarasota County received its high-impact certification in 2022 and currently collects a 6% bed tax. The neighboring counties of Pinellas and Hillsborough also levy a “sixth penny” tax.
The funds collected from a bed tax can be spent on tourism-related projects, including beach renourishment or the new water taxi/ferry service. In addition, proceeds can be spent on upgrades to public assets, such as the Bradenton Area Convention Center or the Premier Sports Complex.
While addressing commissioners during the July BOCC meeting, during which the board approved placing the referendum on the ballot, Falcione told commissioners that the additional money collected would go toward community asset improvements, not toward new or increased tourism marketing.
Click here to view a PDF version of the informational webpage that previously appeared on the county government’s website regarding ballot item 8.
Click the following video to replay the tourist development tax discussion from the June 10, 2024, TDC meeting.
To replay Falcione’s presentation before commissioners, board discussion, and public comment on the motion to approve the tourist development tax referendum during the July 30, 2024, BOCC meeting, click the video below.
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