Summary
To: Town Commission
From: Stefan Massol, Director of Support Services
Date: 5/4/2021
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Subject:
Title
Discussion of Proposed Additional Five Cent Local Option Fuel Tax (LOFT)
Summary:
Pinellas County is considering increasing the local option fuel tax by 1-5 cents. Attached is an Interlocal Agreement for distribution of the additional 1-5 Cent Local Option Fuel Tax under consideration. The distribution formula to each of the municipalites is identical to the current formula in place.
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Body
Previous Commission Action: N/A
Background/Problem Discussion: Pinellas County Board of County Commissioners is considering a small increase to motor fuel tax rates. This would be an increase of five cents per gallon over the current six cents per gallon currently collected for local option fuel tax (LOFT). Five cents extra would bring Pinellas County to the maximum LOFT total of 11 cents and would bring our county LOFT to the same rates as many neighboring counties including Sarasota, Manatee, Pasco and Polk Counties.
Historically we have seen declining revenues from motor fuel taxes to county and local government, which many attribute to the adoption of hybrid and electric vehicles. Annual fuel tax receipts in Belleair have decreased each year from $57,276 in 2017 to $49,286 in 2020. If approved the additional amounts could be used for capital improvements such as roadway and sidewalk projects but unlike other fuel tax proceeds it could not be used to fund annual maintenance work.
Currently the federal government and State of Florida collect the majority of motor fuel taxes for roadway purposes. Of the roughly 52 cents per gallon of fuel taxes collected in Pinellas County only 11 cents is dedicated for county and city roadway projects. Of the 11 cents, 4 cents is provided indirectly through the State of Florida and another cent is funded through the Ninth-Cent Fuel Tax for Pinellas Coun...
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