Editorial: Hot summer nears, for Collier County tourist tax debate that is

The chairwoman of the Collier County Commission devised her own recommended formula for spending each of 4 cents per dollar charged to visitors staying in hotel rooms and short-term rentals.

It’s called the Penny Plan.

“No pun intended,” Chairwoman Penny Taylor insists.

Based on the reaction of other commissioners, it makes sense to shift most of the money collected from the tourist development tax to beach projects. But part of the Penny Plan that changes how museums get tourist tax dollars may not be worth a plugged nickel now.

With the hot summer offseason for tourism settling in, the next three weeks bear watching as the debate heats up over allocating the tourist tax, a divisive issue when the formula’s been changed in the past.

The Penny Plan

The Penny Plan is a deviation from what’s been dubbed the Staros Plan after Naples Ritz-Carlton hotel executive Ed Staros approached county leaders several weeks ago. Staros advocated a tourist tax spending formula of 60 percent for beaches, 40 percent for marketing and ending contributions that cover operational expenses of museums.

When Staros speaks on behalf of the hospitality industry, it’s like the legacy television commercial for one-time brokerage E.F. Hutton. The room goes silent and everyone listens. Before your time? Google it.

Based on the current 4 percent bed tax, the Penny Plan would provide 2.5 cents per dollar to beaches and 1.5 percent to marketing, coupled with a goal of making museums self-sustaining within five years. At 62.5 percent for beaches and 37.5 percent for marketing, it approximates the Staros Plan.

The breakdown since 2013 is 46.7 percent for marketing, 41.3 percent for beach-related projects and 12 percent for museums. The bed tax collects about $21 million yearly.

Here’s what’s to like:

+ Either plan invests more money in beaches, which commissioners reaffirmed Tuesday is their No. 1 goal.

+ We applaud Taylor’s approach that sand truck hauls aren’t the sole answer and money is needed for longer, sustainable renourishment.

+ Taylor and other commissioners addressed “community confusion” that there is a choice looming between money for beaches and a potential amateur sports complex under consideration. A revised staff chart now shows how the fourth penny -- or a potential additional fifth cent per dollar -- legally could be used for an amateur sports complex. Under state law, only the first three pennies can go toward beaches.

New plan needed

Neither the Penny Plan or Staros Plan seems destined for approval now, however.

Commissioners Bill McDaniel and Burt Saunders each said Tuesday they support using tourist tax money for museums. Shifting those dollars for museums to property taxpayers would require eliminating some $2 million of other spending, Saunders noted.

According to County Attorney Jeff Klatzkow, a supermajority vote -- four of five commissioners -- is needed either to increase the tourist tax or change the distribution formula.

Commissioner Donna Fiala was absent Tuesday but at a prior public meeting challenged the suggestion that tourists don’t benefit from museums.

That would leave both plans well short of the votes needed to take museums out of the equation.

Who will come up with another formula? That likely falls to county government staff, with commissioners scheduled to meet June 13 with their tourism advisory board and to further consider the sports complex. Commissioners reaffirmed Tuesday that if they build a sports complex, it would require increasing the bed tax to 5 percent and wouldn’t take away from their No. 1 commitment to beaches.

Whatever new plan is devised, we hope it addresses not only a percentage breakdown but for elected leaders -- meaning the tax collector -- to press to collect all bed tax money Collier should receive.

Collier remains one of the counties without an agreement to collect bed taxes from popular online short-term booking firms like Airbnb. The industry leader’s website says the state administers tourist taxes for 24 counties and lists 14 other counties' practices. That’s more than half of Florida’s 67 counties, so it’s about time for Collier to put this to bed.