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Agenda 05/27/2025 Item #10A (To impose an additional one percent tax as a high impact tourism destination for a total six cent tax)5/27/2025 Item # 10.A ID# 2025-1918 Executive Summary *** This item to be heard at 1:00 pm. *** Recommendation that the Board discuss whether it wishes to consider an amendment to the Tourist Development Tax Ordinance No. 2017-53 to impose an additional one percent tax as a high impact tourism destination for a total six percent tax, and to provide direction to the County Attorney and Staff to start the process for the amendment and required referendum. OBJECTIVE: To discuss an ordinance amendment that would increase the Tourist Development Tax by 1% for the completion of the Paradise Coast Sports Complex and other important tourism-related uses, and to provide direction to the County Attorney and Staff. CONSIDERATIONS: The Tourist Development Tax is a tax on the total rental amount collected from every person or other party who rents, leases, or lets for consideration living quarters or accommodation in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, or condominiums for a period of six months or less. The Department of Revenue has confirmed that Collier County qualifies as a high-impact tourism county, which allows Collier County to impose an additional one percent on the current five percent Tourist Development Tax. The process starts with the Board of County Commissioners enacting an ordinance levying the tax, followed by a referendum at a general election. The ordinance is approved by a simple majority vote. The next general election is November 3, 2026. The final text of the referendum in English and Spanish is due by noon on June 12, 2026. If the referendum is approved, the effective date of the levy and imposition of the tax authorized would be January 1, 2027. Authorized uses of the sixth cent include: To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate, or promote: Aquariums, museums, zoos, fishing piers, and nature centers that are publicly owned and operated or owned and operated by not-for-profit organizations and open to the public. Publicly owned and operated convention centers, sports stadiums, sports arenas, coliseums, or auditoriums within the boundaries of the county. To promote and advertise tourism as evidenced by the promotion of the activity, service, venue, or event to tourists. To fund convention bureaus, tourist bureaus, tourist information centers, and news bureaus. To finance beach park facilities, or beach, channel, estuary, or lagoon improvement, maintenance, renourishment, restoration, and erosion control. To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate, or finance public facilities within the boundaries of the county or subcounty special taxing district in which the tax is levied, if the public facilities are needed to increase tourist-related business activities in the county and are recommended by the county tourist development council. Tax revenues may be used for any related land acquisition, land improvement, design and engineering costs, and all other professional and related costs required to bring the public facilities into service (Subject to additional requirements, including a supermajority vote of the Board). ADVISORY BOARD RECOMMENDATIONS: If approved, the TDC will review this at the appropriate time. FISCAL IMPACT: Tourist Development Tax (five percent) collections for FY 2024 totaled approximately $48.6 million. Based on FY 2024 collections, imposing the additional one percent tax as a high-impact tourism destination could result in incremental revenue of approximately $9.7 million annually. It should be noted that Tourist Development Tax revenue is highly variable, and past results are not necessarily indicative of future collections. Page 744 of 7924 5/27/2025 Item # 10.A ID# 2025-1918 GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. – JAK RECOMMENDATIONS: For the Board to discuss an amendment to the Tourist Development Tax Ordinance No. 2017-53 to impose an additional one percent tax as a high-impact tourism destination for a total six percent tax for the completion of the Paradise Coast Sports Complex and other important tourism-related uses, and to provide direction to the County Attorney and Staff to start the process for the amendment and required referendum. PREPARED BY: Burt L. Saunders, Commmissioner, District 3 ATTACHMENTS: 1. Item 10 PSCS Hunden Slides Page 745 of 7924 Page 746 of 7924 Page 747 of 7924 Page 748 of 7924 Page 749 of 7924 Page 750 of 7924 Page 751 of 7924