Half-Cent Tax
In 2018, Okaloosa voters approved a 0.50% tax to be used for infrastructure improvements, commonly known as the “Half Cent Tax”. The tax began on January 1, 2019 and is set to end on December 31, 2028.
This brought the sales tax rate in Okaloosa County to 7%. The average sales tax rate for Florida Counties is 7.04%.
Original projections made in 2019 were around $20 million per year. In its sixth year of being implemented and as of January 2024, the tax has generated about $91.8 million which is very close to the initial projection.
WHAT IS INFRASTRUCTURE?
The referendum the people voted on stated the tax revenue would be used for “essential law enforcement/public safety facilities and vital equipment; reduce traffic congestion: construction and repairing of roads and bridges: flood control and water quality improvements and construct other public facility improvements and pay debt”.
WHAT IS MY POSITION ON THE SURTAX?
The tax revenue has benefitted the County by funding necessary infrastructure improvements. By committing County funds to a project, matching State funds become available. Also, State agencies see the commitment and urgency from the county and are more likely to prioritize and allocate resources to the County project. This allows long standing County infrastructure problems to be solved quickly.
Within District 3, the major work has been stabilizing over 110 miles of dirt roads and building the Crestview Bypass.
You can find a list of projects listed on the County web site: OKALOOSA COUNTY INFRASTRUCTURE SURTAX WEBSITE
It is crucial to know that the surtax will expire on 31 December 2028. If the County wishes to continue the surtax beyond that date, they will need to propose a new surtax which will be subject to a vote by the people of Okaloosa.
Because this is the 6th year of the surtax, it is too early to determine if the surtax should be renewed. In the 2027/2028 timeframe the County with input from residents should conduct a thorough assessment to determine if the surtax has achieved the intended goals, if the funds were used efficiently, if its projects were completed as planned, and if there are any new projects that require funding.
