Local Option Sales Tax

Local Option Sales Tax FAQ & Feedback Survey

The Citrus County Board of County Commissioners (BOCC) is seeking public feedback on the possibility of placing a Local Option Sales Tax referendum on the November 2026 ballot. The Citrus County Chamber of Commerce has volunteered to facilitate gathering community input.

As facilitators, we are not for or against the initiative.

Rather, we want to know how the public feels about the possibility.

Please take the time to read the FAQ and/or watch the recording of the recorded informational presentation and Q&A before taking the brief survey at the end. The survey will help to collect the needed feedback from the community to get a true understanding of the desire of the community on how to move forward with the potential referendum on the November 2026 ballot.

Quick Facts

What do I need to know about local option sales tax?

The implementation process is outlined in Section 212.055(2), Florida Statutes.
Up to 1% may be levied for local use on top of the state sales tax (6%).
There is no state restriction on the duration of a levy, but a sunset provision may be imposed.

○ Bonding of revenue is permissible, but not required.

○ A 10-20 year sunset typically allows for bonding of revenue.

Local sales tax applies only to the first $5,000 of a major purchase.
A sales tax referendum must receive more than 50% of the votes in a general election.
A local option sales tax could generate an estimated $25 million or more per year.

○ 20–25% of sales tax revenue could be paid by visitors to Citrus County.

○ A portion of any sales tax revenue must be shared with the cities.

■ Amounts shared may be adjusted through interlocal agreement.

- Citrus is the only county in Florida that has never had a local option sales tax in place.

What can revenue from this tax be used for?

Construction of new infrastructure
Reconstruction or improvement of existing infrastructure
Infrastructure-related land improvement and/or design/engineering costs
All other related costs to bring public facilities into service
Land acquisition (for infrastructure, public recreation, conservation, protection of natural resources, or certain housing projects)
Purchase vehicles for the fire department, EMS, or police department
Purchase equipment for fire department, EMS, or police department vehicles
Prevention or satisfaction of certain property rights claims
Closure of county or municipally owned solid waste landfills (in specific cases)
Construction, lease, maintenance, utilities, or security of courthouse facilities
Providing energy efficiency loans, grants, or rebates (must be included in referendum)
Improving private facilities that may be used free-of-charge as an emergency shelter
Funding economic development projects (up to 15%)
Funding instructional technology (for use solely within school district classrooms)
Additional parks & recreation uses (must meet certain criteria on election day)

What types of purchases could be taxed?

Levied on all rental properties, sales, and payments for services are currently subject to the state sales tax.
Applies only to the first $5,000 of the purchase price of tangible personal property like a car or boat.
Does not apply to rental of commercial real property or transient rentals.

Frequently Asked Questions

Why is a local option sales tax being discussed?

The Citrus County BOCC has expressed interest in receiving community feedback on the possible implementation of a 1% local government infrastructure surtax, which is a type of local option sales tax.

Is it 1% or 1 penny?

In short, both. The tax is applied per dollar (up to the first $5,000 of a tangible purchase), so one penny is 1% of each dollar that is being taxed.

Does Citrus County have a local option sales tax in place?

While Citrus County collects revenue from a variety of sources (including property taxes, gas taxes, and impact fees), there has never been a local option sales tax in place.

Does Citrus County need a local option sales tax?

Enacting a local option sales tax could provide Citrus County with a different source of revenue, which could be used to fund and speed up the implementation of various projects.

How much revenue could a local option sales tax generate?

A 1% local option sales tax could generate an estimated $25 million per year in additional revenue for Citrus County.

How much could I pay if a local option sales tax is put in place?

Local sales tax applies only to the first $5,000 of a major purchase like a car or boat. Like the state sales tax, it would not apply to necessities such as groceries, prescriptions, medical services/devices, etc. The approximate annual per capita cost of a 1% local option sales tax is $86.96; however, up to 20-25% of revenue could be paid by visitors, reducing the amount paid by residents.

How is a local option sales tax put in place?

To implement a local option sales tax, the Citrus County BOCC must frst adopt an ordinance, which would trigger a voter referendum. The process is outlined in Section 212.055(2) of the Florida Statutes.

Who decides what local option sales tax revenue would be used for?

If this initiative were to advance to the November 2026 election, a specifc use or uses would be outlined within the ballot language. The town hall meetings and online survey are meant to determine which eligible uses the community would prefer and inform the BOCC’s decision.

When will the BOCC choose whether or not to adopt an ordinance?

After the June town hall meetings, our steering committee will present community input to the BOCC. If they choose to pursue the local option sales tax, the BOCC will direct staff to prepare a draft ordinance for approval at a publicly-noticed meeting (likely in October 2025).

When would the referendum be on the ballot?

If the BOCC chooses to adopt an ordinance in 2025, voters will have the opportunity to approve or decline the sales tax referendum in the November 2026 general election. To pass, the referendum must receive more than 50% of votes cast.

When would the local option sales tax take effect?

If pursued by the BOCC and approved by more than 50% of Citrus County voters in November 2026, the local option sales tax would take effect on January 1, 2027.

Eligible Projects

What types of projects may be funded with local option sales tax revenue?

The following projects have been identified by the BOCC, but are not currently funded. These projects are meant to serve as an example of the types of projects that may benefit from the revenue collected through a local option sales tax. Please note that, if an ordinance is approved, the resulting ballot language will outline specific uses. This may further limit project eligibility.

Backlogged Road Maintenance: $300+ million
491 Expansion - Design/Construction: $250 million
New Judicial Complex - Design/Construction: $140 million
New Animal Services Facility - Construction: $12 million
Water/Wastewater System Expansions: $10 million
New Fire Station #8 (Inverness) - Construction: $5 million

Gas Tax 101

What is Citrus County's budget for road resurfacing?

In FY24, Citrus County budgeted $12.2 million for road resurfacing. The FY25 budget allocated $18 million towards the residential road resurfacing program.

How much gas tax is collected by Citrus County?

The Florida Department of Revenue's FY24 projections showed Citrus County receiving approximately $8.84 million in gas tax collections.

Is the entire road resurfacing budget funded by the gas tax?

Gas taxes and Small County Outreach Program (SCOP) funds account for $5 million, with the balance covered through ad valorem tax revenue.

Why aren't 100% of gas tax funds allocated to road resurfacing?

Different classifications of gas tax come with restrictions on how the revenue can be spent. For example, only 40% of the gas tax revenue can be used for road resurfacing. The other 60% must be allocated to other road maintenance, including mowing, striping, signage, etc.

Additionally, Citrus County has pledged a portion of this revenue as security for financing road improvements, including County Roads 486 and 491. It’s important to note that gas tax funds are not being used for non-road projects.

How long does road resurfacing typically last?

Paved roads usually last 20-25 years before requiring resurfacing.

How much does it cost to resurface one mile of road?

To determine the cost to resurface one mile of road, you must look at each road based on the number of lanes it has. It costs about $173,000 to resurface a mile of a single lane.

How many miles of road are owned and maintained by Citrus County?

Citrus County owns and maintains 1,917 miles of public roadway (1,844 are asphalt).

How much would it cost to replace Citrus County's entire road network?

The replacement value of the county's network is $1.3 billion.

Why do we need to invest in our roads?

Approximately 670 miles of Citrus County's roads are rated in poor condition. 400 miles are likely to need Full Depth Reclamation, which could cost over $280 million. Total backlogged road maintenance costs are estimated at well over $300 million.