Collier County bed tax increase debate heads to ballot

Business groups are divided over whether Collier County visitors should pay another penny on the dollar for hotel rooms and vacation rentals of six months or less. 

Voters will decide Nov. 3 whether to raise the county’s tourist development tax from 5% to 6%, a proposal supporters say is needed to complete Paradise Coast Sports Complex and fund other tourism-related projects. Opponents, including the Naples Area Board of Realtors, or NABOR, warn the increase could make the county less competitive for visitors. 

Proponents of the increase — which also would fund tourism promotion, beach renourishment and tourist-related infrastructure — see it as the only way to complete the complex without using the county’s general fund. 

County estimates put the remaining cost of Paradise Coast Sports Complex at $38 million to $44 million for additional sports fields and $45 million to $70 million for a new indoor sports facility.  

The increase would add about $4.68 per night to a $468 peak-season hotel room in the Naples area. Visitors currently pay a combined 11% in state and local taxes on short-term lodging. 

NABOR is concerned the increase could have a negative impact on owners of short-term rental properties. 

Among the supporters are the Greater Naples Chamber and the Collier County chapter of the Florida Restaurant & Lodging Association. 

According to the county, the current 5% tax generates about $48 million to $50 million annually, and the “sixth penny” would generate nearly $10 million in additional funding. If approved, it would take effect Jan. 1, 2027. 

The sports complex currently includes nine synthetic turf fields, a 3,500-seat stadium, an open-air fitness pavilion, concessions and a 13-acre man-made lake. Phase four would add 11 multipurpose fields, restrooms and other infrastructure. Phase five would add an indoor sports fieldhouse for volleyball, basketball, ping-pong and pickleball. 

County Commissioner Burt Saunders, who also serves as chair of the county’s Tourist Development Council, has been a vocal proponent of the measure because he believes completing the sports complex can play a significant role in attracting more visitors. 

At a National Travel and Tourism Week luncheon in Naples in May, Saunders said sports activities at the complex would help drive tourism during the summer months, when visitation slows, and argued that year-round tourism is one of the facility’s most important benefits. 

Danielle Hudson, vice president of public policy for NABOR, said the organization is concerned that higher lodging costs could affect Collier County’s competitiveness. 

“We oppose increasing the cost of the short-term rental and lodging market at a time when our members feel that affordability and economic competitiveness are already concerns,” Hudson said. “There is real concern among some of our members, particularly those that do their business in the short-term rental market.” 

Hudson said NABOR also is concerned that the proposed increase has no sunset provision, meaning the tax could remain in place indefinitely without a defined end date. 

John Mullins, Collier County division director of communications, said the proposed sixth penny would not include a sunset provision and would remain in effect unless repealed by the Board of County Commissioners or by voter referendum. 

Regarding concerns about negative effects on short-term rentals, Shelton Weeks, Lucas Professor of Real Estate at Florida Gulf Coast University, said any impact would be minimal because the region remains a strong, luxury-oriented destination with high demand. 

“If it were a market struggling with occupancy, the impact might be more profound, but even in light of the fact that we had a somewhat slower level of tourist activity over the last year, I really don’t see this having a very profound impact,” he said. “Any time you increase cost, it’s going to have somewhat of a negative effect, but I would expect that to be negligible.” 

He said voters need to weigh the risks against the benefits of supporting completion of the sports complex, given the effect it could have on future tourism. 

“A lot of folks that come here for events at the sports complex might not have ever come to Southwest Florida at all, and then they discover Naples, and the next time they’re thinking about a vacation, hopefully Naples comes to mind,” Weeks said. 

John Lai, director for the Southwest Florida region of the Florida Restaurant & Lodging Association, which has more than 350 members in Collier County, said data shows amateur sports help fill hotel rooms during the offseason, strengthening the county’s tourism economy beyond seasonal leisure travel. 

“Collier County has an opportunity to finish a one-of-a-kind crown jewel when it comes to amateur sports for the region,” Lai said. “And to be able to get that to the finish line, I think should be a priority.” 

Mullins said state law prohibits counties from using public funds to advocate for passage of the ballot measure, but allows them to provide impartial information to the public. 

Saunders told attendees at the National Travel and Tourism Week luncheon that “it’s very important for people to understand that this is not an increase in your (ad valorem) taxes for residents; it’s an increase in the tax on tourists.” 

Commissioners in December approved using $150,000 from the county’s general fund to inform voters about the proposed bed tax increase. Plans for the education campaign include a website, CollierTDT.com, social media and up to 10 community information meetings across the county. 

The first public meeting is scheduled for 6 to 7:30 p.m. Monday, Aug. 24, at North Collier Regional Park, 15000 Livingston Road in North Naples. Mullins said the full list of meetings will be published on the TDT website Aug. 10.