Simplify the following text for a Grade 5 native English-speaking person.
Original: Panama City Beach is a city in Bay County , Florida , United States , on the Gulf of Mexico coast . The city is often referred to under the umbrella term of `` Panama City '' , despite being a distinct municipality from the older and larger inland Panama City to the east , making Panama City and Panama City Beach two separate cities .
Simplified: Panama City Beach is a city of Florida in the United States .