Subject:
Title
Consideration and Direction, Re: Implementation of the Ninth-Cent Unleaded Motor Fuel Tax and the Local Option Unleaded Motor Fuel Gas Tax (1-5 Cent).
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Fiscal Impact:
The implementation of both optional gas taxes could generate approximately $9.1 million in recurring annual revenue, based on projections from the Florida Department of Revenue.
Dept/Office:
County Manager’s Office/Public Works
Requested Action:
Recommendation
Pursuant to the Board of County Commissioners’ direction at its meeting on September 8, 2026, it is requested that the Board consider the following information regarding the Ninth-Cent Unleaded Motor Fuel Tax and the Local Option Unleaded Motor Fuel Tax (1-5 Cent), and provide such further direction as the Board desires. Should the Board wish to implement both or either of these motor fuel taxes, it is requested that the Board authorize the County Manager to take all necessary administrative actions to implement the Board’s direction, including execution of required documents and interlocal agreements, budget amendments, resolutions, and ballot language, subject to review and approval by the County Attorney’s Office, Risk Management, and Purchasing Services.
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Summary Explanation and Background:
On September 8, 2026, the Board of County Commissioners directed staff to bring back information related to Local Option Gas Taxes to address local transportation funding needs.
Counties may impose up to twelve cents of local option motor fuel taxes, eleven cents of which must be shared with municipalities. The authorizing statutes divide the twelve cents of optional motor fuel taxes into three categories: the original six cents motor fuel tax authorized by section 336.025(1)(a), Florida Statutes (the “Original Six Cents Gas Tax”); the five cents tax authorized by section 336.025(1)(b), Florida Statutes (the “Second Local Option Five Cents Gas Tax”); and the penny tax authorized by section 336.021, Florida Statutes, now titled the “Ninth-Cent.” The County currently collects the Original Six Cents Gas Tax for both diesel and unleaded fuel and the statutorily required diesel component of the Ninth-Cent Fuel Tax.
Either or both of the Second Local Option Five Cents Gas Tax or the Ninth Cent Gas Tax may be levied by one of the following two methods:
• Ordinance adopted by a supermajority of the Board - Under this option, gas taxes must be adopted on or before October 1 to be effective January 1 of the following year. Thus, if the Board imposes either gas tax by a supermajority prior to October 1, 2026, it would be effective January 1, 2027.
• Voter approval in a referendum at a general election - The deadline to provide the Supervisor of Elections office with finalized referendum language is 78 days prior to each general election, therefore if the Board chose to place this on the ballot, it would have to wait until November 2028 to be effective beginning January 1, 2029.
It is estimated that implementing the Second Local Option Five Cents Gas Tax would generate approximately $6.4 million annually for the County, with an estimated additional $6.2 million distributed to municipalities in accordance with the existing Local Option Gas Tax interlocal agreement. Similarly, implementing the Ninth Cent Gas Tax is estimated to generate approximately $2.7 million annually. While the full tax increase may initially be reflected at the pump, available literature suggests that a portion may be absorbed within the fuel supply chain. The cost would also be shared by residents and visitors alike.
Combined, the two taxes are estimated to generate approximately $9.1 million in recurring annual transportation revenue for the County. The additional revenue could be directed toward eligible transportation needs, including:
• Road paving, resurfacing, reconstruction, and preservation;
• Roadside drainage and ditch maintenance;
• Culvert and pipe replacement;
• Drainage inspections and proactive maintenance;
• Transit Services and Operation;
• Traffic Operations;
• Transportation construction and engineering;
• Capital equipment replacement;
• Transportation operations and maintenance; and
• Other eligible transportation projects identified through the County's adopted plans and capital improvement program.
Additional Background and Information
In 2014, the Board appointed a Blue Ribbon Advisory Committee to examine Brevard County’s growing transportation infrastructure needs. At the Board’s direction, the Public Works Department subsequently prepared updated reports in 2022 and 2025 titled “Revenue Generation Options.” Those reports identified a growing gap between available transportation revenues and infrastructure needs, including aging bridges, increasing roadway congestion, deteriorating drainage systems, sidewalk trip hazards, rising dirt-road maintenance costs, and other operational, maintenance, repair, and safety requirements.
The Public Works Department updated the “Unfunded Needs and Critical Backlog List,” identifying approximately $1.4 billion in unfunded transportation needs, which does not include approximately $3.2 billion in capacity and resiliency projects that were determined to be cost-infeasible or would require significant eminent domain.
Inflation and the County’s Charter Cap have increased the financial pressure on the County’s budget, resulting in reduced funding allocations for transportation needs. These reductions have affected multi-year Capital Improvement Projects and the County’s paving program, which has invested approximately $124 million since 2018 to improve County roads from their previous deficient condition. These gains are unsustainable at the current reduced funding levels. Based on current projections, roadways could deteriorate to pre-2018 conditions within 5-10 years due to increased traffic, oxidation, and other factors. At the same time, inflation has increased the Public Works Department's costs by approximately 68% since 2020, further reducing the Department’s purchasing power and service levels.
Also, during the discussion at the September 8th meeting, the Board raised the issue of fees for Electric Vehicles (EVs), since EVs do not pay the gas tax. Staff has conducted some basic research on the subject. According to the National Conference of State Legislatures, 42 states require a special registration fee for EVs, and 35 states also assess a registration fee for plug-in hybrid electric vehicles or non-plug-in hybrid vehicles with combustible engines. Florida is not one of the 42 states. A summary chart is provided.
Some basic research shows that, in 2025, according to the Florida Department of Highway Safety and Motor Vehicles, about 31,210 vehicles are electric or electric hybrid in Brevard County, representing about 5.6% of cars and heavy trucks registered in the County.
Clerk to the Board Instructions:
Please prepare a memorandum consistent with the Board’s direction, if any, and transmit a copy of the memorandum to the County Manager.