ORANGE COUNTY, Fla. — Orange County is eyeing a possible sales tax increase to address over $22 billion in transportation needs.
During a board meeting Tuesday, Orange County Commissioners did not narrow-in on a specific proposal but discussed either a one percent or a half-percent sales tax increase, impacting consumers’ everyday expenses.
County officials indicated that the sales tax increase would create a dedicated funding stream for various transportation projects, including road maintenance and improvements to mass transit.
Channel 9 crunched the numbers and learned a one-percent sales tax increase could result in an additional $7 added to the average holiday gift shopping bill, which according to the National Retail Federation is about $630.
The current sales tax rate in Orange County is 6.5 percent, meaning with taxes, that bill comes to just over $670.95. It would increase to $677.25 if a one-percent sales tax increase was implemented.
According to the county, a one-percent sales tax increase would generate $757 million in estimated revenue, potentially doubling the county’s annual transportation budget.
Dominic Calabro, President and CEO of Florida Tax Watch, says especially around the holidays, the sales tax is a big money maker as shoppers head to stores purchasing toys, clothes, and electronics.
He emphasized the importance of Orange County clearly developing a plan for the proposed sales tax increase and effectively communicating that plan with voters who would need to approve the increase at the ballot box.
Calabro stated, “Oftentimes when counties or local governments show a legitimate plan to spend the money, Florida Tax Watch has shown that more often than not, the voters have been very generous.”
This wouldn’t be the first time Orange County has proposed a sales tax increase to solve transportation funding issues.
In 2022, Orange County voters shot down a one-cent transportation system surtax with 58 percent of voters voting against the 1% sales tax increase, which would have paid for an expanded bus system, Sunrail system, and road and bike path projects throughout the county.
The county again pursued a sales tax for transportation in 2024, but suspended the effort before it reached the ballot.
Meanwhile, Orange County Commissioner Kelly Martinez Semrad told Channel 9 she is supportive of having voters decide on a possible tax increase, but she expressed reservations.
“We need to fix the roads and we need a mass transit system that works. But we need to fund it in a way that people in Orange County can afford,” said Semrad, “Right now, I don’t know if one of the lowest wage markets in the United States with a higher cost of living, can afford a sales tax increase.”
Semrad expressed her longstanding belief that Orange County’s more than 75-million annual tourist should play a larger role in maintaining and supporting the county’s transportation infrastructure.
“We all agree that there needs to be a dedicated source of funding for our roadways, for our mass transit, and for our infrastructure … how do we arrive to that permanent funding? People have different ideas,” Semrad stated.
Commissioners will revisit a possible sales tax increase discussion after the new year. If commissioners advance the proposal, voters could have the opportunity to decide on the tax increase in November 2026.
In the meantime, several Central Florida counties have already implemented their own Local Option Sales Tax Rate, on top of the state’s 6-percent sales tax.
You can see how your county’s total sales tax rate compares below:
- Orange: 6.5 Percent
- Brevard: 7.0 Percent
- Lake: 7.0 Percent
- Osceola: 7.5 Percent
- Seminole: 7.0 Percent
- Volusia: 6.5 Percent
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