Panama City Beach police say a former officer kept the cash meant to go to the family of a slain colleague.
Twenty-two-year-old Louie Durden is charged with grand theft.
Police say he kept about $500 from the sale of bumper stickers that said "In Memory of Sergeant Kevin Kight" after telling buyers the money would help Kight's family. Kight was shot to death during a traffic stop on Easter.
Police say Durden was a patrol officer with their police department for about six months until he was fired in September 2004 for "honesty issues."
His supervisors say Durden lied about how he damaged a police car.
The former police officer remains in jail with a first appearance before a judge scheduled for later in the day.