Subject:
Title
Legislative Intent and Permission to Advertise Ordinances Levying the Second Local Option Five Cents Gas Tax and the Ninth Cent Gas Tax to Increase County Revenue for Transportation Expenditures; Scheduling Special Meeting
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Fiscal Impact:
TBD – Estimated up to $9.1M in Additional Funding
Dept/Office:
District 1
Requested Action:
Recommendation
It is requested that the Board of County Commissioners (BOCC) (1) approve legislative intent and authorize the advertisement of ordinances levying the Second Local Option Five Cents Gas Tax and the Ninth Cent Gas Tax; and (2) schedule a special meeting at 9:00 AM on Tuesday, September 30 to hold a public hearing and consider adoption of the ordinance.
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Summary Explanation and Background:
For FY2025-26, there are identified $3.8 million dollars needed to restore paving and reconstruction to current levels. Additionally, $3 million was cut from Public Works Transportation construction projects that were removed from the county budget in order for the current budget to balance. The public works director shared during the budget workshops that the transportation backlog for FY26-39 is estimated at $2.2B.
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.”
Brevard County currently implements only the Original Six Cents Gas Tax, which is significantly lower than neighboring counties. For example, Seminole County recently levied the Second Local Option Five Cents Gas Tax and had already levied the Ninth Cent, increasing its total local option motor fuel taxes to 12 cents per gallon, matching rates in Volusia, Osceola, Marion, and Polk counties.
The gas tax option provides strategic advantages by reallocating funding to include tourist dollars in helping with transportation costs, as visitors who use county roads but do not pay property taxes would contribute to infrastructure maintenance through fuel purchases. Each additional cent could generate approximately $2-3 million annually based on neighboring county data, with the Second Local Option Five Cents Gas Tax and the Ninth Cent revenues restricted solely for transportation expenditures including road construction, reconstruction, resurfacing, bridge maintenance, traffic signals, and public transit.
Fuel Taxes - as presented in the County Manager’s Budget Message dated July 15, 2025
- Ninth Cent Fuel Tax on Unleaded Motor Fuel - If levied by October 1st, this additional fuel tax is would generate approximately $2.7 million in County revenue, which could be allocated to transportation-related expenditures. This revenue would help mitigate potential reductions in the Public Works program. Enacting this tax would require either a supermajority vote by the Board or approval via a ballot referendum at a general election.
- Second Local Option Five Cents Gas Tax (1 -5 Cents) - The imposition of this additional fuel tax is projected to generate approximately $6.4 million in County revenue, and would also be directed toward transportation expenditures, assisting in offsetting proposed reductions to the Public Works program. Like the Ninth Cent Fuel Tax, implementation would require either a supermajority vote by the Board or approval through a ballot referendum at a general election.
In February, March and April 2025 the BOCC hosted four (4) budget workshops reviewing funding needs presented by county departments. No board direction was provided to staff at the workshops as to how the BOCC will address the current funding challenges that were identified during these comprehensive departmental reviews.
During these workshops, critical infrastructure needs were documented that exceed available traditional funding sources, creating an urgent need for new revenue approaches. Public Works Director Marc Bernath presented multiple funding options in his board presentation that are attached to this agenda item. County millage comparisons to other counties from FY2018-FY2025 provided in the February 20, 2025 budget overview presentation are also attached.
The Ninth Cent and the Second Local Option Five Cents Gas Tax must be approved by a majority plus one vote of the Board of County Commissioners (i.e., four votes required) or by referendum at a general election. Imposition, re-imposition, and rate increases of each of the three local option motor fuel taxes must be adopted on or before October 1 and may take effect only on the ensuing January 1, for a period not to exceed 30 years. Because the Board does not have another regular meeting until Tuesday, October 14, a special meeting must be held on or before October 1 in order to adopt an ordinance imposing these local option gas taxes to take effect in 2026. Therefore, it is requested that the Board schedule a special meeting on Tuesday, September 30 at 9 AM to hold a public hearing and consider the ordinance, which would allow for the required ten day public advertisement.
Only the Ninth Cent is not required to be divided among the County and the municipalities. The Original Six Cents Gas Tax and the Second Local Option Five Cents Gas Tax must be shared with municipalities with the distribution based upon an interlocal agreement or a formula determined by the respective historical transportation expenditures of each. If imposed, the Second Local Option Five Cents Gas Tax and the Ninth Cent would apply to each gallon of motor fuel sold at retail. They do not extend to diesel or special fuel.
Additional Resources:
Link to the county calendar which contains information for the four (4) 2025 budget workshops with meeting agendas, department presentations, and video-recordings: https://brevardfl.legistar.com/Calendar.aspx
Link to the proposed FY2025-2026 Budget: https://brevardfl.gov/BudgetOffice/Budgets/ProposedBudget
Link to the Budget Office website with additional information, annual budgets and fiscal meeting dates: https://brevardfl.gov/BudgetOffice
Clerk to the Board Instructions:
Return a copy of the Clerk’s Memorandum to the County Attorney and County Manager.