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Public transportation revenue opportunities

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Material Information

Title:
Public transportation revenue opportunities local option fuel taxes
Cover title:
Public transportation revenue options local option fuel taxes
Portion of title:
Local option fuel taxes
Physical Description:
1 online resource (ii, 9 leaves) : ;
Language:
English
Creator:
Staes, Lisa
Florida -- Dept. of Transportation
University of South Florida -- Center for Urban Transportation Research
Publisher:
University of South Florida, Center for Urban Transportation Research
Place of Publication:
Tampa, Fla.
Publication Date:

Subjects

Subjects / Keywords:
Transportation -- Finance -- Florida   ( lcsh )
Motor fuels -- Taxation -- Florida   ( lcsh )
Genre:
bibliography   ( marcgt )
non-fiction   ( marcgt )

Notes

Bibliography:
Includes bibliographical references.
Statement of Responsibility:
prepared for Florida Department of Transportation by Center for Urban Transportation Research, College of Engineering, University of South Florida ; Lisa Staes, senior research associate.
General Note:
"July 2001."

Record Information

Source Institution:
University of South Florida Library
Holding Location:
University of South Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 029175172
oclc - 750507396
usfldc doi - C01-00126
usfldc handle - c1.126
System ID:
SFS0032236:00001


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PAGE 1

PUBLIC TRANSPORTATION REVENUE OPTIONS: LOCAL OPTION FUEL TAXES

PAGE 2

Public Transportation Revenue Opportunities: Local Option Fuel Taxes Prepared for: Flor i da Department of Transportation By : Center for Urban Transportation Research College of Engineer ing Un i ve r s ity of South F l orida July 2001

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National Center for Transit Research Center for Urban Transportation Research University of South Florida 4202 E. Fow l e r Ave n ue, CUT 1 00 Tampa, Florida 33620-5375 (813) 974-3120 Suncom 57 4-3120 Fax (813) 974-5168 Lisa Staes, Senior Research Associate

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Public Transportation Revenue Opportunities: List ofT ables Introduction Local Option Fuel Taxes Table of Contents The Loca l Option Fuel Taxes The First Option The Second Option The Ninth-Cent Fuel Tax Who Is Benefitting? Page i i 1 1 1 2 2 5

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Table 1 2 List of Tables Ii1!.i Loca l Opt i on Fue l Tax Rates (levi es) by Cou nty Local Option Fuel Tax Survey Resu lts il Pi!ge 3 7

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Public Transportation Revenue Opportunities: Local Option Fuel Taxes Introduction Florida's pub lic transportation agencies are ha ving to make adjustments to their budge t s due to the l i mited availabi l ity of federa l and state operat i ng and capital funds Various "innovative funding" opportu n iti es have been identified and utiliz ed by a numbe r of the public transpo rta tion agencies within the state. I nnovative strategies such as State I nfrastructure Bank loans; the use of flexible f u nds such as Cong es tion M i tigation and Air Quality (CMAQ) prog r am funds and Surface Transp ortat io n Program (STP) f u nds; and the use of Toll Reve nu e Credits, to name a few are be ing used by many of the state's transit agencies. While many agencies ha ve met with success in implemen tin g these too ls they sti ll have difficulty in meeting the ever inc r easing demands placed on the i r systems for expanded services. The primary reason for this difficultylimited funding. I n the state of F l orida, public transportation agencies have other avenues availab l e to them to provide additional operating and cap ita l reve nues. The f oll owing is a brief discussion of a group of options local optio n fuel taxes, tha t may be le v ie d by local governments to assist in meeting th e capita l and operating needs o f pub lic serv ic es, including publ i c transportatio n The Local Option Fue l Taxes L ocal governments are authorized to le vy up to 12 cents of lo cal option fue l taxes in the form of three separate l evies, as described below (Table 1 identifies by county the amount of each tax levied and an estimate of the revenues generated for each 1 cent of tax Estimates for FY 1999 we r e based on FY 1999 distribution percentages obtained from the Florida Department of Reven ue FY 2000 estimates were not yet available when this document was produced): The Fi r st O pti on 1 to 6 Cents Local Option Fuel Tax. 0 25(1 )(a), F l orida Statutes authorizes local governments to levy a tax of 1 to 6 cents on every net gallon o f motor a nd d i esel fuel sold in a county Th is tax may be autho rized by an ordinance adopted by a majority vote of the governing body or by voter approval i n a coun tywid e re fere ndum. Tax proceeds may only be used for transportat io n expenditures, inc l uding, but not limited to public transportat i on operations, ma in t enance. and debt service on transportation capital pro jects. Count ies gene r ally shar e the pro c eeds from the fuel tax w i th local municipal iti es through establ i shed int ertocal agreements. Table 1 also Local Option Fuel Taxes 1 J ul y 2 001

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Identi fies the amount of revenue s tha t would be generated by each county in the state for every $0.01 diverted to public transportation. The Second Option 1 to 5 Cents Local Option Fuel Tax 336.02 5(1}(b} Florida Statutes authorizes county governments to levy a tax of 1 to 5 cents on every net gallon of moto r fuel s old within a county. This tax is levied by an ordinance adopted by a majori ty plus one vote of the membership of th e governing body o r by voter approv al in a countywide refe r endum. The ta x proceeds may be used for transportation expend i tures n eeded to meet th e req u irements o f the capital improvements e l ement of an adopted loca l governmen t comprehensive plan, including those improv ements for th e public transportation system Under the same arrangement identified above counties may share the proceed s from this tax with each of the mun ic ip alit i es with i n the county Again a ny capital improvement for the public t r a nsporta tio n sys t em ide n ti fied in the lo cal govern ment comp r e hensiv e plan is an elig i ble expenditu re. The Ninth-Cent Fuel Tax Ninth-Cent Fuel Tax 336.021 (1 }(a}, Florida Statutes authorizes county governments to levy a "ninth cent fu e l tax on every net gallon of motor and diese l fue l sold w i th in a county The tax may be a u th orized by an ordin ance adop ted by a ma j ority plus o n e vot e of the govern ing body. County and municipa l g overnments may use the t ax proceeds for tr a nsport a ti on expe nd it ures. inclu ding, but not l imited to public tra nsportati on operating and maintenance expenses. Loca l Opeion Fuel Ta xes 2 July 2001

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TABLE 1 Local Option Fuel Tax Rates ( Levies) (#of cents per gallon) C ounty Ninth Cen t .. Loca l Option Local O pllon EsL Reven ue s per 1 {in O OOs) A l achua 1 .0 6 0 693 .0 B aker 1 .0 6 .0 1 3 U ) Bay 6.0 796.0 Bradf o r d 6 0 131.0 Brevard 6 0 2 089 0 Browa r d 1.0 6 0 5 .0 6,78 1 0 C a l h oun 6. 0 5 2. 0 C h arlotle 6 0 5. 0 7 1 3 0 Citrus 6 0 47 4 0 C l ay 1 0 6 0 582 0 Collier 1 0 6 0 5.0 1,026 0 C-ol u m b i a 1 0 6.0 5 0 408 0 Dade 1 .0 6 0 3.0 8.056 0 Desoto 1 0 6 0 5 0 85. 0 Dixie 6 .0 60 0 Ouv a 1 6 0 3 399 0 E5eamb l a 1 0 6 0 1, 285.0 flagler 1.0 6 0 1 97.0 Franklin 5.0 60.0 Gadsden 6.0 230 0 G ilChrist 1 .0 6 0 48 0 Glades 1 0 6 0 3 6.0 Gull 1 .0 6.0 48 0 Ham ilton 3 0 1 05.0 Ha r dee 1 0 6 0 98 0 H end ry 1. 0 6.0 188. 0 He rnando 1.0 6.0 2 0 54 2 .0 H i ghlands 1 .0 6. 0 3. 0 346.0 H ill sbor o ugh 1 0 6 0 4 4 24 0 Hol mes 6 0 86 .0 I n d i a n R iver 6. 0 5 1 4 0 J ackson 1.0 6 0 28 0.0 JoHerson 1.0 6 .0 88 0 laf ayette 6. 0 23. 0 Lak e 1 0 6 0 9 1 8 0 Local O ption Fuel T axes 3 J u l y 2001

PAGE 9

Local Option Fuel Tax Rates (Levies ) ( #of cents p e r gallo n ) County N inth Cenl 1 Loeal Opeton r' Local Option Est. Revenues por 1in OOOt)" LH 1 0 5 0 5 0 1,981.0 Loon 6 0 1 021.0 Lovy 6 0 184 .0 Llborty 1 0 6.0 29.0 Madison 8 .0 92.0 Manatoo 1 0 6.0 990.0 M arlen 1 .0 8.0 1 334 0 Man in 6 0 2 0 615.0 Monroe 8 0 523.0 Na.nu 1 0 6.0 247.0 Okalooaa 5.0 844 0 OkMChobee 1.0 6.0 232 0 Orongo 0.0 4 ,
PAGE 10

Who Is Benefitting? In Table 1, we identified each county in Florida, the current levy rates for each of the local option fuel taxes, and an estimate of the revenue that would be generated by each cent. Nine counties are at the maximum rate of levy (12 cents), including: Broward, Collier, Columbia, Desoto, Lee, Palm Beach, St. Lucie, Sarasota, and Volusia Counties. Counties who have maximized thei r levy of the local option fuel taxes would have to redirect those revenues generated to the transit agency to support public transportation operating and capital expenses. However, there are 58 counties that have not maximized the levy of local option fuel taxes. The l evy of additional loca l options could be a future source of revenue for the public transporta tion systems in these counties. Those public transportation entit ies who have benefitted through the levy of local option fuel taxes are identified be low. As reflected in Table 2. the re are only eleven systems who benefit from revenues derived from l oca l option fuel taxes including: Space Coast Area Transit (Brevard County); Broward County Transit; Flagler County Council on Aging; Gainesville Regional Tran sit System (RTS); Key West Department of Transportation (KWDOT) in Monroe County; LeeTran (Lee County); Martin County Council on Aging; LYNX (Orange, Osceola, and Seminole Counties); Palm Tran; Sumter County Transit; and VOTRAN (Volusia County}. It is important to note that with the exception of VOTRAN, the se allo cat ions were new funds made available to the agencies. There was no displacement of any current f und ing VOTRAN's allocation of local option gas tax revenue replaced ad valorem revenue previously received. A brief summary of the relevant benefits and characteristics of the levy for each system is addressed below. Space Coast Area Transit (SCAT)receives 1/3rd of a cent from the first option levied by Brevard County which generates approximately $850,000 per year. The levy of the second loca l opti on was approved by a majority +1 vote of the Brevard County Boa rd of County Commissioners. Broward County Transit-receives a full cent dedicated specifically for public transportation from the second lo ca l option. They also receive 48 percent of a second cent dedicated to public transportation from the second local option. I n Broward, each penny generates approximately $6.5 million The county primarily uses the funds to offset their operating deficit. Th e levy of the second loca l option was approved by a supermajority vote of the Broward County Board of County Commissioners. Flagler County Council on Aging (the Community Transportation Coordinator for Flagler County} rece ives Y:. cent of local option gas tax revenues {which equates to approximately $95,000) as an annual appropriation from the Flag le r County Commission. Gainesville Regional Transit System (RTS}-RTS receives 80% of the amount allocated to the City of Gainesville from Alachua County Currently, this equates to approximately $2 million per year for RTS. Local O ption Fuel Taxes 5 July 2001

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Key West Department of Transportation (KWDOT)KWDOT receives approximately one and one-half cent of the loca l option fuel tax revenue collected in the County from the second local option. The City of Key West. through an intertocal agreement with Monroe County. receives a portion of the local option fuel tax revenue collected in the county and then, through the annual budgeting process allocates a portion to KWDOT. In F isc al Year 2001, KWDOT received approximately $800,000 from this sou rce of revenue. The l evy of the second local option was approved by a majority +1 vote of the Monroe County Board of County Commissioners. LeeTran-receives approximately 1/3rd of a cent from the second loca l option which generates approximately $500,000 per year. The l evy of the second local option was approved by a majority +1 vote of the Lee County Board of County Commissioners. Martin County Council on Aging (the Community Transportation Coordinator for Martin County)-i t is estimated that they receive approximately 1/3rd of a cent from the second local option. A portion of the fuel tax reve nues collected for the county are given to the Martin County Public Services Department who allocate approximately $232,000 per year to the Council on Aging of Martin County. The levy of the second local option was app rove d by a majority +1 vote of the Martin County Board of County Commissione rs LYNX receives varying amounts of local option fuel tax revenues from the local governments within their three county service area. PalmTranreceives 2 Y. cents of the second lo cal option and Y. cent of the Ninth Cent Tax which together generate approximately $11.2 mill ion per year. T he levy of the second local option was approved by a majority +1 vote of the Palm Beach County Board of County Commissioners. Sumter County Transit (the Community Transportation Coordinator for Sumter County)r eceives Y. cent from the Ninth Cent which generates approximately $90,000 per year The levy of the Ninth Cent Tax was approved by a majority +1 vote of the Sumter County Board of County Commissioners. VOTRAN also receives lo cal option fuel tax revenues. VOTRAN receives approximately 3/4 of a cent per year from the second local option. Th is generates a pp rox ima tely $1.5 million per year. The levy of the second local option was approved by a majority + 1 vote of the Volusia County Council. Local Option Fuel Taxes 6 July 200 1

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TABLE 2 Local Option Fuel Tax Survey County En1lty Fuel Tax RatO (cents/gallon) For Public Referendum R e c i p i ent Transportation? or Majority ( +1) var ies .. RTS receives 80% of t he amount allocated t o t h e Alachua RTS Yes C i ty of Gain e s vil le C u rrenUy, No M a j atlty +1 thiS e qua t e s to approximate l y $2 m illon per y ear Baker CTC No NIA N I A NIA Bay Bay Twn Trolley No NIA N I A NIA C T C No N I A N/A N/A Bradfo r d CTC No NIA N/A NIA B revar d SCATIC T C Yes 1/3 cen t N o M aiOc'ity + 1 Browar d BCT Yes Y as fo r fi rst penn y; 43 1.48 cents percent of 2nd pen n y M a ;or ity +1 dedicated to mass tran s i t Calhoun ere No N I A N I A NIA Ch a rlotto CTC No N I A N/A N/A Citrus ere No N I A N/A NIA Clay ere No N/A N/A N/A C ollier CTC No N I A N/A NIA Columbia C T C No NIA N/A N/A Dde MOTA No N / A NIA NIA O&soto CTC No N/A NJA NIA D i xie CTC No N I A N/A NJA Duval JTA NfR NIR N/R NIR Escambia ECAT No N/A N/A NJA CTC No N / A N/A NJA < Yi cent, based o n annual Flaglar ere Yes appropriatio n from County No Ma jot ity +1 Comm. F Y 0 1: $95,000 Fr anklin CTC N o N / A N/A NJA Gad:Sden ere No N/A N/A N I A Gilchrist CTC No N/A NIA NIA G l ades CTC No N/A NIA NIA Gulf e r e No N/A NJA NIA Hamilton CTC No N/A NIA NIA Hardee ere No NIA NIA N I A Hendrv eTC No N/A NJA N I A Hernando CTC No N/A N/A NIA H ighlands CTC No NIA N/A NJA local Option F u el Taxes 7 J u l y 2 001

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County Entity Fuel Tax Rate (cents/gallon) For Public Referendum Recipient Transportat ion? or Majority ( +) Hil l sborough HARTUNE No N / A N/A N/A CTC No N/A N/A N/A Holmes CTC No N/A N/A N/A Indian River CTC No N/A N/A N/A Jackson CTC N o N/A N/A N/A Jefferson CTC No N/A N/A N/A Lafavette CTC No N/A N/A N/A Lake CTC No N I A N/A NIA Lee LeeTran Yes 113 cent No Major ity 1 CTC No N/A NIA N/A Leon TALTRAN No NIA NIA NIA CTC N o N/A N/A N/A L evy CTC N o N I A NIA NIA Libertv CTC No N/A NIA NIA Mad ison CTC No N/A NIA N / A MCAT/ CTC No N/A NIA NIA Marion SunTran No N/A N/A NIA CTC N o N/A NIA NIA Martin Yes 113 cent No Me lO
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County Ent ity Fue l Tax Rato (centsJgaUon) For Public Referendum Recipient Transportation? or Majority(+) Taylor CTC No N/A NIA N / A Union CTC No N/A N/A N / A Volus.la VOTRAN/CTC Yes 3/4 cent No Majority +l Wakulla CTC No N/A N/A N/A Walton CTC No NIA N/A N/A WashinRton CTC No NIA N/A N/A Source: Cent er for Urban Transportation Research (CUTR) survey, April 2001. NJRNon Respon sive local Option Fuel Taxes 9 July 2001