Seminole County will soon add five cents to the price of all gasoline sold in the county. This is a move created to fill a multi-million dollar hole in the county’s budget and pay for increased costs of mass transport.
The committee also agreed on Tuesday to raise Seminole’s public services tax on water and electricity bills in unincorporated areas, between 4% and 10%, to help pay for the sheriff’s office, fire department and the park.
According to state law, the tax hike required a huge majority of votes. That is, at least four of the five commissioners voted in favor. Commissioner Bob Dalari was the only commissioner to vote against both increases.
The tax hike on gas and utility bills will be between $4.90 and nearly $5.38 per $1,000 in the real estate tax value, just a month after commissioners decided to raise the general county-wide property tax rate for the first time in 16 years.
Commissioner Amy Lockhart said the increase is not pleasant, but necessary, as it will add to other commissioners and will increase the costs of serving residents. She added that each commissioner is a resident who must pay higher taxes.
“We’re not on a high horse somehow. We’re falling in the trench with everyone else,” Lockhart said. “We understand how influential this is for the residents. We’re not underestimating it.”
The Seminole is facing a $34 million budget shortfall as it tackles inflation, increased insurance costs and increased pay for civil servants, including sheriff’s deputies and firefighters.
Without an increase in revenue, the county will have to dig into reserve funds again next fiscal year, officials said.
Committee chair Jay Zenbower said the county may not be able to rely on FEMA funds if hurricanes and other disasters hit Seminole County for federal cuts. This makes the county’s budget even more important.
“We might find ourselves in a rather bad place if we don’t do something in terms of our reserves being in that position,” Zembower said.
State law allows counties to add a “local option fuel tax” with pennies. Taxes do not apply to diesel fuel or electric vehicles.
Seminole, Orange and Lake counties currently do not have such taxes. However, Osceola and Volsia counties have collected five cents for many years.
According to county documents, an additional gallon of gallons of nickel will spend around $24 a year if you purchase all gas in seminoles for the average driver.
It is estimated that it will generate around $8.8 million next year. After splitting into seven Seminole cities, the county receives about $5.5 million.
The funds can only be used for mass transport operation and maintenance, including building new roads, resurfacement of paved roads, Sunrail commuter trains, Links bus systems and new microtransit service scouts.
The Seminole has budgeted more than $12.1 million to pay the county share of Sunrail for next year’s fiscal year.
Additionally, Seminole’s new MicroTransit Service Scouts (which replace most Links bus routes) are scheduled to launch a door-to-door service on October 1st. Scouts’ counties cost between $5 million and $8 million a year, depending on the number of vehicles used.
Last November, Seminole voters approved an additional cent sales tax. However, the proceeds can only be used for road improvements, trail construction and stormwater projects. However, it cannot be used to pay for mass transport, county officials pointed out in favor of gas tax.
A 10% increase in public services tax on all monthly water and electricity bills in non-integrated areas would generate an estimated $12 million for the county general fund that will pay for Seminole’s daily operations next year, county officials said.
The average monthly electricity bill for residents is around $200. The new fee will raise that bill for $9 after a certain exemption. The average monthly water bill for non-recessed residents is around $90, based on 4,500 gallons, with the new tax going up by $5 a month after exemption.
Orange, Lake and Borussia counties now charge 10%, while Osceola charge 8%. Seminole cities decide their own taxation, except for 8% by Altamonte Springs, all charge 10%.
Sanford resident George Salely said the utilities tax hike would be a hit hard on low-income people as private utilities, including the power and light of Duke and Florida, are considering rising tax rates. He urged the commissioner to exempt the first 500 kilowatt hours of electricity from tax.
Richard Creedon, president of the Geneva Civic Association, opposed the increase that would take effect on January 1st.
“The county did little to propose a budget to significantly reduce spending,” he said. “You need to budget your spending in the order of forecast revenues. But the problem is that the county doesn’t want to make the decisions it takes to cut its spending.”
Darari did not comment on why he voted against both tax increases. However, he referenced a comment he made last spring. He said the county needs to find more efficiency in its budget and spending.
Original issue: August 12, 2025, 3:51pm EDT
