SEMINOLE COUNTY, Fla. – On Tuesday, Seminole County commissioners voted 4-1 to add a 5-cent tax per gallon of gas starting Jan. 1. It brings the total collection on each gallon sold in the county to 15 cents, including state levies.
Before commissioners voted to approve the increase, county staff gave a presentation on the proposed increase, how it will be utilized, and what the impact will be to drivers.
Drivers are expected to pay about $2 per month, according to estimates from the county based on an average of 1,000 miles driven and 48 gallons used. That means the average driver would pay about $24 a year.
The county expects to generate $8.8 million each year, which would be split between the county and cities. The money would then be utilized for transportation costs, such as the SunRail system.
For decades, Seminole County has relied on the general fund to supplement the transportation budget. Commissioner Amy Lockhart said Tuesday that this additional 5-cent tax will help free up money in the general fund for its intended purpose.
“We have left dollars on the table, if you will, for the actual tool that the legislature has provided us to pay for transportation by not implementing all of it and have supplemented from our general fund, “ said Commissioner Lockhart. “And so what that means is that the other people, other taxable home property owners, have been supplementing and footing the bill for transportation costs that they might not otherwise have to pay.”
Tuesday, commissioners admitted once again that the longtime conservative board is in a position where they need to act.
“We’ve been conservative for our own demise in order to provide quality services this county needs, and quite frankly deserve,” said Chairman Jay Zembower. “This is what has to happen.”
This summer, News 6 has reported on the $34 million budget deficit the county is faced with as it deals with rising transit costs, inflation, and increasing costs in public safety personnel.
In July, the commission voted in favor of a property tax rate increase of 0.5 mills to generate revenue. Once the rate is finalized this fall, the average homeowner is expected to pay about $144 more each year.
Tuesday, they also voted to increase the utility services tax in unincorporated areas, which applies to electricity, natural gas, and water services.
“Doing all three at once is the best way to make sure that property owners don’t bear the entire burden of the need,” Commissioner Andria Herr said while addressing public perception that the county is increasing property taxes, the gas tax, and utility tax all at once. “This is the appropriate payment from the appropriate source to fund the appropriate county service.”
Commissioner Bob Dallari was the only one to vote against the gas tax and utility service tax increase. He also voted against raising the millage rate in July. On Tuesday, his comments were brief.
“I expressed my concerns about this, and I’ll be voting accordingly,” said Dallari. “I will not be supporting it.”
County Commissioners also noted Tuesday that the portion of the budget they control has only gone up by 1.3% for the upcoming fiscal year.
“It’s our other elected officials that have driven this budget up to the point,” said Chairman Zembower. “We’ve asked them to cut. The sheriff has come back with a cut. Others are looking at it. It’s not engraved in stone until we get to the final days, but a lot of these things were just quite frankly easy to say ‘no’ to through the years.”
In June, News 6 reported that the sheriff’s budget had increased up to $16 million this year as his department deals with challenges recruiting and maintaining deputies in a competitive job market. Public safety costs account for the biggest portion of the county’s $1.2 billion budget for Fiscal Year 2025/2026.
“I’m not willing to sacrifice public safety for a small tax on gas that is often paid by folks that do not live here,” said Commissioner Herr. “We pay it when we travel. And impact to utility that bears less burden to our taxpayers that are paying property tax, and a property tax that actually will support public safety and keep our property values where they are or higher.”
Chairman Zembower said the county has already spent down the reserves over the last three years, and at this point, they cannot cut their way out of this.
“Either we start closing libraries, stop fixing intersections, sidewalks, all those things, and cut back, you know, first responders, which nobody wants to pick up the phone and call 911 and say, ‘You know, ‘I’ve got an emergency,’ and we tell them, ‘Hold on an hour. We’ll have somebody there as soon as we can.’ That’s not what this community is about, nor would I put the community in that position.”
Both Volusia and Osceola already levy the additional 5-cent local option fuel tax, county staff said Tuesday.
“We’re now on par with some of our fellow counties and what their collections will be as far as percentage, but overall, we still will be the least taxed in the region.”