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BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
DATE: August 20, 2013
TO: Honorable Chairman and Members of the Board
FROM: John Hofstad
SUBJECT: Request a Public Hearing for the implementation of the 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. This is a request to conduct the public hearing during the Board of
County Commissioners regular meeting on September 3, 2013 at approximately 6:30 p.m.
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 $950,048 per penny of tax enacted. If all five cents were enacted the maximum
anticipated revenue would be approximately $4,750,240; 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 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 request to schedule a public hearing for consideration of the
Second Local Option Gas Tax during the Board of County Commissioners regular meeting on
September 3, 2013.
Recommendation: Approve the request to schedule a public hearing for consideration of the
Second Local Option Gas Tax during the Board of County Commissioners regular meeting on
September 3, 2013.
RECOMMENDED BY:
APPROVED BY:
Ernie Padgett, County Administrator