Are you watching Panama City Beach rental demand and wondering what the “bed tax” can tell you about bookings and pricing? If you own a vacation rental or you are thinking about buying one, it helps to read the data the right way. In this guide, you will learn what Bay County’s Tourist Development Tax (TDT) measures, how to read the monthly packets, and how to use the numbers to plan rates, purchases, or a sale. Let’s dive in.
What the TDT measures
Bay County’s TDT is a 5% tax on short stays of six months or less. Property owners and operators collect and remit this tax each month. The county does not have a remittance agreement with major platforms, so owners remain responsible for filing. You can review the rules on the Bay County Clerk’s Tourist Development Tax page.
Visit Panama City Beach posts monthly TDT packets that show cash collected for the period and year-to-date totals. You can find the latest PDFs on the Visitor Research page.
How to read monthly reports
The monthly packets are reported on a cash basis. That means a sale from one month may appear in the next month’s report if the cash posted later. The March 2025 packet explains these timing differences and prior-period adjustments, which is important when you compare month to month. See the cash and accrual notes in the March 2025 TDT packet.
For a month-by-month and year-over-year view, use the charts in the current packet. For example, the June 2025 cash collections packet shows single-month totals and nine-month year-to-date comparisons for Panama City Beach, Panama City, and Mexico Beach.
To separate price effects from booking volume, pair TDT with occupancy and average daily rate (ADR) from the city’s quarterly tourism impact report. The Panama City Beach Summer 2024 report blends hotel and vacation-rental data with visitor surveys and is your best seasonal context. Review it here: Summer 2024 Quarterly Tourism Impact.
Seasonality and rental mix
Panama City Beach shows strong seasonality, with spring and summer peaks. In the Summer 2024 analysis, short-term rentals accounted for about 77% of summer lodging revenue, while hotels made up the balance. That split means changes in owner-listed vacation rentals drive most of the summer TDT movement. See the breakdown in the Summer 2024 Quarterly Tourism Impact report.
What TDT moves can signal
- TDT up while occupancy flat. This often points to higher ADR rather than more room nights. Use ADR and RevPAR to confirm.
- TDT down year over year but ADR up. This can mean fewer nights sold even if prices rose.
- Platform and compliance effects. Because owners must remit the county TDT, shifts in booking channels can distort reported cash totals until audits catch up.
- Calendar effects. The number of weekends or the timing of holidays can move results between months.
- Policy risk. State proposals in 2025 could limit how TDT funds are used, which may influence future marketing and demand. Local coverage explains the potential changes in this news report on proposed House bills.
Owner and buyer checklist
Track these each month to stay ahead of demand:
- TDT cash collections and year-to-date trend on the Visitor Research page.
- ADR and occupancy from the Quarterly Tourism Impact report.
- Cash versus accrual notes and prior-period adjustments in the monthly packet.
- Your remittance responsibilities and filing schedule on the Bay County Clerk’s TDT page.
Pricing and planning tips
- Set seasonal rate bands using last year’s ADR and the current TDT trend. If TDT rises while occupancy is steady, test modest ADR increases.
- Watch weekend and holiday placement. A month with more weekends can lift results even if demand is unchanged.
- Adjust minimum stays for peak weeks to protect ADR. Relax them in shoulder periods to capture pace.
- Monitor booking channel mix. If you shift platforms, confirm that you are collecting and remitting county TDT correctly.
- Use three to twelve months of data. Avoid reacting to a single month because cash timing and adjustments can blur the picture.
What this means for your strategy
If you are buying a PCB vacation rental, look at TDT trends alongside occupancy and ADR to gauge likely revenue by season. Focus on how a property fits summer demand, since short-term rentals drive most of the summer lodging revenue. If you are selling, recent TDT and ADR stability can support your pricing story when paired with strong presentation and marketing.
Work with a local advisor
Reading the TDT correctly can sharpen your rates, your buy box, and your timing. If you want a clear, data-backed plan for your next purchase or sale in Panama City Beach, connect with Bedel Thomé for senior-level guidance and a tailored strategy.
FAQs
What is Bay County’s Tourist Development Tax?
- It is a 5% tax on short-term stays of six months or less that owners collect and remit monthly within the county’s taxing jurisdiction.
Does Panama City Beach TDT show actual occupancy?
- No, TDT measures taxable rental revenue on a cash basis, which is influenced by ADR, timing differences, and platform behavior, so it should be paired with occupancy data.
Where can you find current PCB TDT results?
- Visit Panama City Beach posts monthly TDT packets on its Visitor Research page with single-month and year-to-date comparisons.
How should investors use TDT with ADR and occupancy?
- Use TDT to gauge revenue trends, then compare with ADR and occupancy from the quarterly tourism report to see whether price or nights sold are driving changes.
Could Florida legislation change how TDT impacts demand?
- Yes, proposals in 2025 could limit how TDT funds are used, which may affect future tourism marketing and demand, so it is smart to monitor policy updates.
Who remits TDT for Airbnb or VRBO bookings in Bay County?
- Owners and operators are responsible for collecting and remitting the county TDT, since there is no county remittance agreement with those platforms.
