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BP and Florida Business Impacts

December 14th, 2010 by flanews

Florida retailers are asking BP to sponsor seven sales tax holidays to make up for the damage caused by the company’s oil spill. The Florida Retailers Federation, along with Florida TaxWatch, estimate the spill cost the state half a billion dollars in economic activity. The state lost out on 15 million dollars in sales tax collection. Laurie Olshefski (Ole-Chef-Ski), a panhandle gift shop owner, says her profits tanked.

“When the oil spill hit and the scare, people stopped coming. They canceled their reservations. They went to places where they were guaranteed to have a great vacation with their family, because family time is very important and they didn’t want to take a risk with not having a guarantee on their vacation,” said Olshefski.

President of the Florida Retail Federation Rick McAllister says stores owners don’t want a handout. They want their employees to be able to work.

“What we are looking for are incentives for people to return to the area to shop. We are asking for marketing dollars in those drive markets, you know the Atlanta, the Montgomery, the Birmingham, the Memphis areas, where most of the people come from that fly in for long weekends and weeks. There are driving markets in there that are very critical to us. We need those people coming back in for day trips, weekend trips, and day long stays,” said McAllister.

The federation estimates it will cost around 25 million dollars to sponsor the sales tax holidays.

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