Merchant fee cap increase as a revenue option
Summary
The board flagged the merchant license fee — a 1% gross receipts tax worth roughly $13-14 million a year that only Panama City and Panama City Beach still have. Members urged extreme caution in charter language so the grandfathered tax isn't jeopardized.
At a glance
- Total mentions
- 2
- Last 30 days
- 0
Last discussed Jun 11, 2026.
Impact analysis
Roughly $13-14 million a year in city revenue — losing it would be a major budget hit.
Every resident who relies on city services benefits from preserving this revenue stream.
Local merchants would bear higher fees, and the state could reduce other funding to cities with a merchant fee.
Mentions & discussions (2)
Public Workshop - Jun 11, 2026
Staff floated raising the $5,000 merchant fee cap to $40,000, which could bring in over $6 million — but warned the state may penalize cities with a merchant fee if the property tax exemption passes.
Charter Review Advisory Board - Mar 26, 2026
The board flagged the merchant license fee — a 1% gross receipts tax worth roughly $13-14 million a year that only Panama City and Panama City Beach still have. Members urged extreme caution in charter language so the grandfathered tax isn't jeopardized.
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