The tourist haven of Panama City, Florida, has, in the first two months of the year, collected $151,000 in revenue from the new tourist development tax, which is called a “bed tax.”

The money is the first example of the kind of cash that will be coming in from the tax which was levied at the start of 2015.

Voters in Panama City approved the 5 percent tax on short-term hotel accommodations last fall.
As a result the special taxing district, which already includes Mexico Beach and the so-called “bridge to bridge” area of Panama City Beach, has been expanded.

The bed tax has definitely brought in funds as Panama City Beach’s collections for the first two months of the year are $1.13 million. By contrast, nearby Mexico Beach reported collections of just $45,000.

And now that there is all this income, the nonprofit Panama City Community Development Council, led by the Panama City Commission, will be tasked with using that money to further strengthen tourism in the area.

As reported in the Panama City News Herald, mayor Greg Brudnicki has announced that, with the amount of revenue now coming in, the time for the City Community Development to get together and focus on a plan for the money is now.

Brudnicki spoke of the future of his city on Friday, saying: “We’re building the coffers, getting some revenue put in place.”

“Hopefully we get to the point where we pull between $1 million and $1.2 million in the first year,” added the mayor.

So far The Panama City Commission has already approved a $24,000 request made by the St. Andrew Bay Yacht Club to cover marketing costs that are associated with a sailing regatta, which the organization will host in May.

Panama City fulfilled the request from its budget and the money used will be reimbursed by the "bed tax" money collected.