MILTON — Santa Rosa County commissioners have delayed a vote to increase the bed tax by 1 cent until more information can be gathered.
The county has proposed hiking the tax on vacation rentals from 4 cents to 5 cents on the dollar and using the money to help fund future beach restoration projects.
“The bed tax is a great source (of revenue),” Commissioner Jim Melvin said. “It certainly won’t handle the entire beach renourishment, but it’s a good start.”
If the extra penny was in place now, the county would have collected $273,000 through the first 11 months of the fiscal year.
Although there was no vote Thursday, all five commissioners appeared to support adding a fifth cent to the bed tax. However, questions arose when discussion turned to how that extra money should be spent.
A portion of Santa Rosa’s existing bed tax is returned to the cities where it is collected. Commissioner Lane Lynchard wondered if that would be the case with the fifth cent.
County Administrator Hunter Walker said he believed the fifth cent could only be used to fund beach restoration, but he would have his staff research it.
“I don’t think you would have that discretion to send some of that back,” Walker said.
Commissioners tabled the bed tax vote to Sept. 26. That will allow them to increase the levy before the start of the next fiscal year Oct. 1.
The county is planning a second beach restoration project that is expected to cost $10.3 million.
Contact Daily News Business Editor Dusty Ricketts at 850-315-4448 or dricketts@nwfdailynews.com. Follow him on Twitter @DustyRnwfdn.