SANFORD, Fla. - Seminole County drivers and utility customers will see higher bills next year after county commissioners approved tax increases on Tuesday aimed at closing a $34 million budget deficit.
What we know:
The Seminole County Commission voted 4-1 on Tuesday to approve two tax increases starting Jan. 1, 2026. The local gas tax will rise by 5 cents per gallon to 12 cents, putting it in line with Osceola and Volusia counties but double Orange County's rate.
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Commissioners also approved increasing the public service tax rate in unincorporated areas from 4% to 10%, which will add about $9 per month to customers' utility bills. The measures are designed to close a $34 million budget deficit.
The backstory:
Commissioners said gas tax revenue has been declining for years due to more fuel-efficient vehicles and the growing popularity of electric cars.
Transportation projects have been partially funded through the general fund, which they say limits spending on other priorities like public safety.
By raising the gas tax, they plan to fully fund transportation work without relying on general fund transfers. About 30% of the gas tax revenue is expected to come from visitors, easing the tax burden on property owners.
Big picture view:
Seminole County's new gas tax rate will match neighboring Osceola and Volusia counties, avoiding a significant competitive disadvantage for fuel prices.
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The public service tax increase will also bring unincorporated areas in line with rates charged by most cities within the county. Commissioners framed the increases as necessary after years of budget cuts, saying additional reductions would jeopardize essential services.
What they're saying:
Seminole County Chair Jay Zembower said the county cannot cut its way out of this problem.
"We have cut, and we have cut!" he said.
Referring to the shift toward fuel efficiency and electric cars, Zembower added, "Those are great things -- great for the environment, great for society -- but it does have an impact."
Anthony Testman, who works in Seminole County, said of the taxes, "I think it's a bit excessive."
Kylie Pearson, who recently moved to Florida, said, "If it's going back to the community, then I think that's pretty rad."