Florida county's issues with tourist taxes have been addressed

(The Center Square) – Several issues identified in a previous audit have been addressed in Escambia County, the Florida auditor general says.

The office of Sherrill F. Norman reviewed the Board of Commissioners and clerk of the Circuit Court. At issue were use of tourist development taxes.

According to the audit, state law allows counties to levy and impose the taxes made up of five separate local tax options. Counties are able to charge up to 6% on every dollar collected for rents of living quarters or accommodations for a maximum of six months, and funds can only be used for specified purposes in state law.

The funds collected can be used for capital construction of tourist-related facilities, tourist promotion, and beach and shoreline maintenance.

The previous audit uncovered the county’s use of the tax collections on purposes contrary to state law. The county had previously retained 3% for administration costs; the auditor said the county should retain only the actual cost of administration, not exceeding 3%, rather than requiring 3% be retained.

It was also recommended that the country restrict the authorized uses of the Professional Sports Franchise Facility Tax, and any unspent funds should be used only for purposes set in Florida statutes, and included in the tourist development plan.

According to the audit , it was previously reported the county had not reviewed tourist development taxes expenditures believed to be unauthorized by the Tourist Development Council, nor had they taken any administrative steps to ensure compliance with state law.

In response, the county adopted new procedures to review expenditures questioned by the council to ensure funds are only spent on the promotion of tourism.

The audit further states the county had expended $7.6 million in tourist development tax collections between this past October and February, which included more than $46,000 in Marine Resource Division salaries and benefit costs.

A total of $2.1 million in costs were examined, including $10,789 in salary payments for the division. It was determined the county could not demonstrate the salaries paid with tourist development tax funds were authorized under state law, or promoted tourism.

The auditor recommended the county better document cost allocation methodologies that support employee salary and benefits costs being charged to tourist development tax funds, adjusting charges accordingly to reflect hours actually spent on Marine Resource Division programs that promote tourism.