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BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
DATE: September 3, 2013
TO: Honorable Chairman and Members of the Board
FROM: John Hofstad
SUBJECT: Public Hearing - Second Local Option Gas Tax
DEPARTMENT: Public Works
BCC DISTRICT: All
Statement of Issue: As part of the annual budget process consideration is being given to
implementation of the Second Local Option Gas Tax (LOGT). Consideration and adoption for
enacting all or part of the Second LOGT requires a public hearing be conducted by the Board of
County Commissioners.
Background: Available to all counties in the state of Florida are two options for local gas taxes.
Currently, Okaloosa County has enacted the first Local Option Gas Tax which is six cents per
gallon of gas. Revenue from this LOGT is split between Okaloosa County and the nine
municipalities at a 60/40 ratio. The annual revenue projected from the first LOGT is
approximately $6,100,000 (~$3,660,000 County / ~$2,440,000 Municipalities).
Consideration is being given to enacting the Second LOGT, which is a maximum of five cents
per gallon of non diesel fuels. The projected annual revenue from the Second LOGT is
approximately $950,448 per penny of tax enacted. If all five cents were enacted the maximum
anticipated revenue would be approximately $4,752,240; this revenue would be split between the
County and Municipalities as part of the revenue sharing agreement. It is anticipated that the
fuel tax revenue sharing agreement will reflect a 64/36 split between the County and
Municipalities. The terms of the revenue sharing agreement would be applicable to revenues
from both the First LOGT and the Second LOGT.
In order to enact the Second LOGT, it is required the attached Ordinance (provided by legal
counsel) be approved by a vote that is a minimum of a majority plus one. When discussing the
ordinance, the Board of County Commissioners shall also consider what number of "pennies", if
any, would be enacted as part of the Second LOGT. Enactment of one, two, three, four or five
cents per gallon of motor fuel is allowed. If approved the tax would not be collected until
January 1, 2014.
Options: Approve/disapprove the attached Ordinance to levy 5 pennies, or a portion thereof, of
the Second Local Option Gas Tax.
Recommendation: Staff requests Board approval of the attached Ordinance to levy 5 pennies,
or a portion thereof, of the Second Local Option Gas Tax and distribution of the proceeds of said
tax between the County and the nine incorporated municipalities at a rate of 64% County and
36% split between the municipalities.
RECOMMENDED BY:
APPROVED BY:
Ernie Padgett, County Administrator