Charlotte County’s Tourist Development Tax revenue was down 4.9% year-over-year in the first quarter of the fiscal year, which ran from October until December 2023.
The Tourist Development Tax, or TDT, is a 5% charge on the revenue collected on the rental of living quarter accommodations for a period of six months or less. Revenue from the TDT is vital to the county, said Sean Doherty, director of the Punta Gorda/Englewood Beach Visitor & Convention Bureau.
“Last fiscal year, research indicates that tourism generated over $1 billion in economic impact for Charlotte County with over 980,000 visitors coming to our area in fiscal year 2023, spending over 1 million room nights in our local hotels, motels and vacation homes,” he said.
He explained funds from TDT, predominantly used for targeted advertising and the VCB’s public relations efforts, as well as for recruiting group business to sporting events and meetings and conventions, “not only create a substantial economic impact but also supports thousands of jobs, while also saving local residents a significant amount of money off their annual tax liability.”
Referring to the last fiscal year’s research, he said approximately 13,000 jobs are supported by tourism, accounting for more than $333 million in wages. On average, due to visitor expenditures, each household saved approximately $1,026 on their taxes.
Charlotte County Tax Collector’s Office Chief Deputy Dan Roe presented a tourist tax report before the Charlotte County Tourist Development Council on Feb. 23.
Roe said first quarter TDT revenue amounted to $1,450,616.52, with most of the room tax coming from hotels and motels, time shares, resorts and bed and breakfasts. Coming in second was revenue from rentals of single-family homes, duplex units and rentals through agents.
Not reflected in the first quarter was the total financial effect of Sunseeker Resort Charlotte Harbor, which opened in December, and the January reopening of the 73-room Hampton Inn in Port Charlotte, which was heavily damaged from Hurricane Ian, as well as the return of major sporting competitions now that the county’s parks have reopened to host events.
On Feb. 27, the Tampa Bay Rays, back at Charlotte Sports Park for spring training, played their first 2024 exhibition game against the New York Yankees. The stadium, also heavily damaged from Hurricane Ian, opened just in time for spring training.
Out-of-area visitors to county events fill rooms and generate TDT revenue.
The county lost many rental units to hurricane damage, including Punta Gorda Waterfront Hotel, which is slated for demolition.
VCB divides the county into tourist zones, and the section of the county bringing in the most revenue was Punta Gorda, Babcock Ranch, Englewood and Manasota Key combined at $490,058.40, with Punta Gorda bringing in the most revenue at $326,032.62.
Coming in second in their neighboring tourist zone were Port Charlotte, Deep Creek and Harbour Heights at $269,797.12. The leader in this zone was Port Charlotte at $267,017.61.
There also were concerns raised by the VCB.
Doherty reported a few bills in the Florida Legislature have been proposed that would expand the use of Tourist Development Taxes for nontourism-related projects, including affordable housing, flood mitigation and septic to sewer conversion.
He said while the proposed bills would initially only affect Miami-Dade and Monroe counties, their passage would be a “slippery slope leading to the adoption of similar uses to all other counties in the state in future legislative sessions.”
In addition, as part of the state House of Representatives Tax Package, a sunset of the TDT is being proposed in counties where it’s not renewed by voter referendum every six years.
A bill that would provide additional regulation on vacation homes is also on the Florida Legislature docket, Doherty said.
