Item Coversheet



BOCC AGENDA ITEM

Item Title:Local Option Fuel Tax Distribution Percentages
Date:7/25/2022
Department:OMB
Background:

The Florida Department of Revenue (FDOR) administers Nassau County's regular local option fuel tax per Ordinances: 2000-24 for 2 cents, 2000-25 for 4 cents, and Ordinance 2018-23 for 5 cents. These ordinances did not specify a method of distribution (either the use of transportation expenditures or an interlocal agreement between the County and municipalities).  However, for the 6 cents, in 2007 FDOR received the County's distribution percentages calculated based on transportation expenditures. In 2018, FDOR received a County email that Ordinance 2018-23 would follow the same distribution percentages provided for the 6 cents local option fuel tax.

 

Florida law provides that distribution percentages calculated based on transportation expenditures shall be calculated every ten years based on the immediately preceding 5 years. Section 336.025(4)(a), F.S.

 

Per the above law, the distribution percentages calculated based on transportation expenditures provided in 2007 have expired.  FDOR indicated that it has not received updated distribution percentages.  Therefore, in compliance with Florida law, FDOR must receive new distribution percentages for all three ordinances.  Because the ordinances do not specify a method of distribution (transportation expenditures or interlocal agreements), the County may elect to:

 

(1) use only one set of distribution percentages for all 3 ordinances;

(2) use separate distribution percentages for 6 cents and 5 cents; or

(3) use separate distribution percentages for each ordinance.

 

If the County elects to use transportation expenditures, the distribution percentages must be calculated based on the immediately preceding 5 years and will be valid for 10 years, or will expire when the ordinances to which they apply.  Both Ordinances 2000-24 and 2000-25 expire 8/31/2025.  If the county elects to extend the 2 cents and the 4 cents, new distribution percentages must be provided for the new ordinances.  Ordinance 2018-23 does not expire until 12/31/2069.

 

The distribution percentages must be provided to FDOR by August 1, 2022

Request:
Consider a recommendation for Local Option Fuel Tax Distribution Percentages for use of only one (1) set of distribution percentages based on the historical transportation expenditures for all 3 ordinances per the attachment (as updated).
Financial/Economic Impact to Future Years Budgeting Process or Effect on Citizens:
N/A
Action Requested and Recommendation:
Consider a recommendation for Local Option Fuel Tax Distribution Percentages for use of only one (1) set of distribution percentages based on the historical transportation expenditures for all 3 ordinances per the attachment (as updated).
Is this action consistent with the Nassau County Comprehensive Land Use Plan?
NA
Funding Source:
N/A
Additional Information Needed for Contracts/Agreements (If Applicable)
Contract Number assigned by Contracts Management:
N/A
For non-governmental agencies, has the document been sent to the vendor for signature?
N/A
Does the document need to be recorded? If so, who will pay the recordation fee?
N/A
Are there any special mailing instructions? (Include contact name, address, deadline for submittal, how to mail such as express mail, FedEx, etc):
N/A
How many originals are needed?
N/A
ATTACHMENTS:
DescriptionUpload DateType
Distribution Percentage Calculation7/12/2022Backup Material
Ordinance 2000-247/12/2022Backup Material
Ordinance 2000-257/12/2022Backup Material
Ordinance 2018-237/12/2022Backup Material
Letter to FDOR7/18/2022Cover Memo
Emails/Letter from FDOR7/18/2022Cover Memo