The county could operate more economically if it tapped tourist tax funds to pay for a wider range of projects, according to the Government Efficiency Liaison Committee.
The county’s five-member volunteer committee, appointed by county commissioners, made that and two other recommendations July 28 after meeting over the past year to study county spending.
County tourist development tax spending is limited by state law to specific, tourism-related uses, including advertising the destination and renourishing beaches, historically two of the top uses of the tax in Manatee County. Other local uses have included funding for the Gulf Islands Ferry and Bradenton Area Convention Center renovations, as well as local tourist attractions such as the Bishop Museum of Science and Nature.
But committee member John Settineri said that it’s “not impossible” to access the funds for major capital improvement projects and infrastructure improvements that are reasonably related to tourism.
The funds could possibly be used to build a new convention center in downtown Bradenton, Settineri said, and to offset costs of general fund items.
For example, the county’s purchase of Mixon Fruit Farms came out of the general fund, he said, adding that the portion of the property that is used for agritourism should be funded by the tourist tax.
Settineri said that previous suggestions to use the tax for infrastructure such as road improvements have been met with a “no,” but a provision of the state statute governing the use of the tax would allow the commission, with a two-thirds vote, to access tax funds for general infrastructure projects with some limits, such as a study that the projects will benefit tourism. Tourists use roads, he said.
“I think it’s restrictive, but not impossible,” Settineri said.
“These are funds that we could have been using in the last few years, but I had nobody coming up and advising me on these opportunities here and I’m appalled that our director of the TDC (Tourist Development Council) did not let us know about this,” Commissioner Jason Bearden said.
The TDC is the advisory board to the County Commission on how tourist tax funds are spent.
County in good standing
Committee Chair David Otterness told commissioners that county expenditures are generally “in line with inflation and population growth.”
However, the committee identified high spending concerns in three county departments — the Manatee County Sheriff’s Office, the utilities department and the public safety department — then determined the expenses were justified due to the growth of the county and the recovery necessitated by hurricanes Helene and Milton in 2024 and beyond.
The committee also questioned the purchase of a county administrative facility in Lakewood Ranch and the addition of staff members.
Besides the tourist tax, their recommendations include creating more interlocal agreements with local municipalities and the school district, such as the ones that allow sharing a staff person with the city of Bradenton Beach and sharing the maintenance of University Parkway with the city of Sarasota.
Another recommendation is to review budget reserves and eliminate reserves for capital improvement projects that are no longer viable, or shrink the size of large projects, freeing up reserves.
Breaking down the bed tax
The tourist development tax, also known as resort tax, or bed tax, is a 13% tax on rentals or leases of six months or less. The tax consists of two parts: 6% is collected and remitted to the Manatee County Tax Collector and 7% sales and use tax is collected and remitted to the Florida Department of Revenue. The requirements for the tax are established by the state of Florida and county governments, according to the Manatee County Tax Collector.
According to Florida Statute section 125.0104, tourist taxes may be spent on convention centers, sports stadiums, auditoriums, aquariums, museums, beach parks, lifeguards and other specified uses, including these provisions referenced generally by Settineri:
“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 or subcounty special district and are recommended by the county tourist development council created pursuant to paragraph (4)(e). 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. As used in this subparagraph, the term “public facilities” means major capital improvements that have a life expectancy of five or more years, including, but not limited to, transportation, sanitary sewer, solid waste, drainage, potable water, and pedestrian facilities.
Tax revenues may be used for these purposes only if the following conditions are satisfied:
a. In the county fiscal year immediately preceding the fiscal year in which the tax revenues were initially used for such purposes, at least $10 million in tourist development tax revenue was received or the county is a fiscally constrained county, as described in s. 218.67(1), located adjacent to the Gulf of America or the Atlantic Ocean;
b. The county governing board approves the use for the proposed public facilities by a vote of at least two-thirds of its membership;
c. No more than 70% of the cost of the proposed public facilities will be paid for with tourist development tax revenues, and sources of funding for the remaining cost are identified and confirmed by the county governing board;
d. At least 40% of all tourist development tax revenues collected in the county are spent to promote and advertise tourism as provided by this subsection; and
e. An independent professional analysis, performed at the expense of the county tourist development council, demonstrates the positive impact of the infrastructure project on tourist-related businesses in the county.”
Cindy Lane is a staff writer for the Tampa Bay Beacons. She can be reached at clane@tbnweekly.com.