Tom Warne Report, 22 February 2013
Expiration of the Hillsborough County 6-cent local option gas tax in Florida is coming to an end this August and officials are warning that it could bring a $22 million plummet to the county’s budget. The County Commission met Feb. 14 to hear preliminary budget figures for Fiscal Year 2014, which begins October 1, 2013.
The 6-cent gas tax, scheduled to expire Aug. 31, is used to pay for road maintenance and transportation operations. The county already has a projected $3.2 million budget deficit and budget director Tom Fesler said that could grow to $25.2 million without the gas tax revenue. He said it is possible that the commission will pursue an extension of the tax, without which “we’d have to look at some pretty significant reductions in our traffic area.”
If the commission decides to extend the tax, new agreements would have to be created and approved with cities in Hillsborough. Following these agreements, a new gas tax ordinance would be presented to the County Commission and public hearings will be scheduled.
A final budget for Fiscal Year 2014 will be adopted Sept. 19.
Florida has a unique situation that allows for a local option gas tax. This tax has been of great benefit locally as state and local roads have been improved with this revenue stream. With gas prices fluctuating 10-20 cents at a time no one will notice a 6 cent reduction in the price. TW