PANAMA CITY – Asset tax relief is likely to be looming thanks to a new business tax through local authorities.
Panama City commissioners last week approved the first reading of an ordinance to consolidate accommodations — hotels, motels, campgrounds and other short-term rentals — into the city’s existing 1% business tax, according to Gray Dodge, Panama’s senior director of economic development. .
“The ultimate purpose (is) to make more profit through trading fees, (which) pass to the general fund, (to) decrease ad valorem as much as imaginable when imaginable,” Dodge said.
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On Sept. 27, commissioners also approved an asset tax relief that will take effect at the beginning of fiscal year 2023 on Oct. 1. The new rate of 4. 7999 is lower than the 2022 rate of 4. 8999.
Like Dodge, Jared Jones, deputy director of Panama City, said proceeding to reduce taxes on assets is just something officials are passionate about, but actively strive to achieve.
“We are phasing out ad valorem and other equitable means of profit-raising to offset the discounts and still be able to provide the same improved facilities to our citizens,” Jones said.
Dodge also said the proposed tax expansion reflects Panama City Beach’s 1% tax, which lately also applies to lodging services.
In addition to eventually allowing the city to waive its taxes on assets, the updated tax would create a fairer market for businesses operating in any of Bay County’s municipalities.
“We try to be firm, fair and consistent,” Gray. Playa and in the city said, (so) we need to make sure we’re consistent across the board. “
Officials will vote on the timing reading of the updated business tax at a Panama City assembly of commissioners on Oct. 11.
If approved, the expansion would generate more cash for the city’s general fund, which will pay for a variety of services, in addition to capital improvement projects.
“We think (it’s) very fair to raise revenue,” Dodge said. “It’s a consumption-based tax, so the more you consume, the more taxes you pay. “