Local

Orange County suspends proposed sales tax increase, citing affordability concerns

ORANGE COUNTY, Fla. — Orange County commissioners voted Monday to table discussions regarding a local sales tax increase until 2028.

The decision marks the second time the county has abandoned efforts to put a local sales tax on the ballot due to concerns over timing and affordability.

The county currently faces more than $22 billion in unfunded transportation and infrastructure projects, which could have been partially funded via the tax.

County staff estimated a one percent sales tax increase would generate $757 million for Orange County annually. According to the county, only 11 percent of that revenue would be paid for by Orange County residents, since tourists contribute significantly to sales tax income.

While officials say a dedicated revenue source is needed to fund infrastructure improvements, they determined the current economic climate makes it difficult to justify a tax hike to voters.

The decision mirrors a similar attempt in 2024 when the county also abandoned the effort because officials felt they could not rationalize a tax increase.

Commissioners also cited failure to rally voter support for a transportation sales tax back in 2022. That year, 58% percent of Orange County voters rejected the penny sales tax for transportation.

County leaders also pointed to a conflict with legislative discussions in Tallahassee. While state officials are considering property tax cuts, Orange County leaders noted that a local ballot measure to raise taxes would create a difficult juxtaposition for residents.

Orange County Mayor Jerry Demings, who previously championed the sales tax initiative, was among those who voted against the measure on Monday.

Demings said there was not enough time to effectively sell a sales tax increase to the public before it reached the ballot.

Demings highlighted the economic pressures facing residents across the region. “The state of Florida, across the country, there are many conversations about affordability,” Demings said. “And if you’re going to advance a ballot initiative that is going to cost people extra money, then you have to be able to articulate to them what they’re going to get for paying the extra money.”

Instead of pursuing the tax now, the board agreed the county must “live within their means” for the immediate future.

Commissioners said they intend to make what improvements they can with current funds to show progress before asking voters for more money in the future.

Commissioners vowed to take the conversation up again in 2028, with commissioner Mayra Uribe, who is running for Orange County Mayor, promising to champion the issue and spend two years making the sales tax pitch to voters before trying to move it to the ballot again.

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