Osceola County, Fla. commissioners approved a 5 cents-per-gallon local gas tax increase on March 9 with a vote of 4-1. Starting Jan. 1, 2016, the new tax is estimated to generate approximately $6 million per year.
Florida permits counties to impose three local option gas taxes for a maximum of 12 cents-per-gallon. The options include the ‘Ninth-cent Local Option Fuel Tax’, a 1 cent-per-gallon tax on motor fuel sold within the county; the ‘1-6 Cents Local Option Fuel Tax’, a tax of 1 to 6 cents-per-gallon on fuel, required to be shared with municipalities within the county; and the ‘1-5 Cents Local Option Fuel Tax’, a tax of 1 to 5 cents-per-gallon on gasoline (excluding diesel). Revenue generated from the ‘1-5 Cents Local Option Fuel Tax’ is also permitted for use on capital improvements, while the other two local option taxes are dedicated for transportation purposes.
Osceola County’s implementation of the ‘1-5 Cents Local Option Fuel Tax’ is in addition to the 6 cents-per-gallon administered through the ‘1-6 Cents Local Option Fuel Tax’. For a breakdown of Florida counties and the local option motor fuel taxes administered, visit: http://www.edr.state.fl.us/Content/local-government/data/county-municipal/2015LOFTrates.pdf