October hotel occupancy rises despite 16% drop in bed tax collections

The Citrus County Tourist Development Council meeting on December 11, 2024, focused on the financial performance of local hotels and the impact of FEMA-related stays on bed tax collections. Council members discussed year-to-date occupancy rates, which showed an increase compared to the previous year, despite challenges posed by recent storms.

A significant point of discussion was the effect of FEMA contracts on bed tax revenue. It was clarified that while hotels accommodating displaced residents can charge for rooms, they do not receive bed tax revenue from FEMA. This has led to confusion among hoteliers regarding tax reimbursement for FEMA stays. Council members emphasized the need for hotel operators to understand that FEMA does not reimburse the bed tax, which has resulted in a 16% decrease in bed tax collections for October compared to the previous year.

The meeting also addressed the timing of financial reports, with updates indicating that the data presented was accurate for the month of October, despite previous misunderstandings about the timing of revenue collection. The council reported a total of $28,000 in fifth penny collections and over $1 million in capital reserves, although overall collections were down by $27,003 compared to the same period last year.

The discussions highlighted the ongoing challenges faced by the local tourism industry and the importance of clear communication regarding financial policies related to FEMA assistance. The council aims to improve understanding among hotel operators to mitigate the financial impact of these issues moving forward.