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Proposed Ordinance Imposing Local Government Infrastructure Surtax
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BRIEF OVERVIEW
The Local Government Infrastructure Surtax Tax (one-half percent sales tax) is a revenue source that is authorized by Fla. Stat. § 212.055(2) and effective upon an affirmative vote by referendum of a majority of a county’s voters. The revenues raised from the tax may be used to address a wide variety of infrastructure needs facing local governments, as well as a recent statutorily authorized use to dedicate a portion of the proceeds to economic development.
The County and the City of Brooksville can theoretically use the proceeds from this kind of a surtax for any of the uses listed in Fla. Stat. § 212.055(2). The proposed ordinance, however, limits use of the surtax to the funding of resurfacing, paving, and widening of local roads. The attached ordinance has proposed ballot language.
Hernando County receives approximately $12 million annually from gas tax. Currently, the money is spent on road resurfacing, signal maintenance, roadside mowing, potholes, street signs, road widening and other transportation needs.
Please note that proceeds from the surtax may not be used for the operational expenses of the Department of Public Works. If placed on the November 2026 ballot and the referendum is approved by the electorate, the collection of the tax would begin effective on January 1, 2027, and continue for the following six years.
Also attached is a timeline for the referendum, sales surtax rates in all other counties in Florida, past presentations to BOCC regarding the counties pavement management program, and funding options for road resurfacing.
FINANCIAL IMPACT
A ½ (.5) cent surtax will result in a ½ (.5) cent surtax on each one Dollar ($1.00) sale for 6 years. The estimated revenue in year one would be approximately $19,522,394.
STRATEGIC PLAN INITIATIVES
Strategic Initiative D - Well-maintained existing community assets. Pursue diverse funding opportunities to support the maintenance and improvement of community access (parks and roadway maintenance), with a goal of identifying and applying for key sources.
LEGAL NOTE
The Board has the authority to adopt this Ordinance pursuant to Fla. Stat. § §125.01 and 212.055(2).
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RECOMMENDATION
A matter of public policy.