One Cent Sales Tax
FREQUENTLY ASKED QUESTIONS
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GENERAL

What projects will be done and how will those project be prioritized?

In terms of program priorities, overall emphasis will be placed on the School Board projects during the first 4 years of the program. Since preliminary engineering and design on the State System take approximately 4 years to complete, the timing to begin the major State Roads dovetails with the School Board finishing the majority of their work.

Priorities on all roads and sidewalks will be set based upon need.

Click here to view a Proposed Project list

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How much income is expected to be derived from the 1-Cent Sales Tax?

$534.373 Million over 10-years. The 1-Cent Sales Tax Revenue from the 1991 Referendum levy is anticipated to come in at $357.2 Million when collection concludes on September 30, 2001.

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What will the new total sales tax be with this 1-Cent?

7% (7’). 6% (6’) current State Sales Tax on all taxable items plus this 1% (1’) on the first $5,000 of the cost of the items. In other words, the total sales tax will be exactly as it is now.

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Who else has this tax? Who has re-levied or extended this tax?

Twenty-seven (27) counties were levying this tax, as of September 29, 2000. Lake and Osceola Counties levy this tax (Volusia and Orange Counties do not).

The following counties have re-levied or extended this tax:Charlotte, Clay, Escambia, Highlands, Manatee, Martin, Monroe, Okaloosa, Osceola, Pinellas, and Taylor Counties.

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Why do we need to spend county tax money on state roads? Has anything developed regarding the state funding of state roads since the initial sales tax referendum?

When the first Sales Tax Program was developed, the County Roadway System was over capacity and under funded. Therefore, all funds were directed to fix what we are legally charged with – the County System. At that time, we knew the State Roadway System would become a future issue and the time to address the State System has arrived.

The County works closely with the FDOT, MetroPlan (regional planning for transportation) and our State/Federal elected officials. Although we have maximized the amount of State/Federal dollars we receive, the simple fact is that the State System is under funded and there is no legislative relief in site. To preserve the quality of life in Seminole County, it is imperative that safe and efficient roadways also exist on the State System. Therefore, as leaders, we are going forth with over $100 Million of State improvements and feel confident that we can be paid back for some of these funds or use them as leverage to accelerate State projects in our County.

The motoring public does not make a distinction between State and County Roads. They only know the route they are traveling on is congested.

If State Roads are not improved, vehicles then move to County and Local roads thereby in many cases creating "cut-through" traffic in our neighborhoods.

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When will I start seeing construction that the sales tax (not your other revenues) is helping to fund?

The first of the Major Construction Projects should start by Year 2005 and others will be under construction during the term of the Sales Tax and in some cases completed after the Sales Tax sunsets.

Intersection, safety and sidewalk improvements construction will begin by the end of the Year 2002.

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When will I start seeing school construction that the sales tax (not your other revenues) is helping to fund?

August 2004 – we will have an additional 227 more classrooms.

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If you divide the approximately 200 new classrooms into the $133 million, the average cost per classroom is over $600,000. Isn't this cost high?

It would be high if the District was only building new classrooms. This program includes new classrooms and renovation/upgrading of old, obsolete facilities. There are only two new schools that are being funded from these new funds and those classroom costs are well below the State average. The Seminole School Board has won over $6 Million in State funds for designing and building new schools for less than the State average cost per student station. Seminole Schools have been duplicated by other Districts because of the low cost.

Seminole has made the decision that where a student lives should not determine the quality of the facility. Older facilities are renovated to make sure that all Seminole Schools can provide quality programs.

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Why is a (20%) contingency included?

The 20% contingency is included for the following reasons:

  • The State's, County's and Cities' road improvements are based on today's best estimates. Historically, growth in revenue offsets construction inflation costs. However, both right-of-way and permitting estimates can vary considerably.

  • Right-of-Way costs vary between 100 to 300 percent of the actual roadway construction costs. This translates to a cost of 2 to 6 Million dollars a roadway mile for right-of-way. With such a wide variance, a moderate contingency is critical.

  • The cost estimates do not reflect any contingency for additional permit requirements (i.e., additional drainage or wetland mitigation required by Department of Environmental Protection (DEP) or the St. Johns River Water Management District (SJRWMD), which continuously become stricter and require more "mitigation".

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If the sales tax passes, who will pay it and what kinds of purchases will be taxed? (Avg. Impact to Consumer)

Everyone making purchases in Seminole County will pay the 1’ Sales Tax. This includes tourists, visitors, and commuters passing through the County; not just County residents and property owners.

The 1’ Sales Tax applies to all transactions subject to the state tax imposed on sales, use, services, rentals, admissions, and other specified transactions. The tax is not subject to any sales amount above $5,000 on any item of tangible personal property and on long distance telephone service. This $5,000 cap does not apply to the sale of any other service. The Sales Tax is not charged on groceries, medicine, or gasoline.

The annual average impact on consumers is estimated to be $31.80 per person in a family of four with an average personal income of $50,000.

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When would I start paying this sales tax if it passes? When does the 1991 Referendum 1-Cent Sales Tax end?

2001 Referendum begins January 1, 2002 (Length of levy is 10 years, ending December 31, 2011)

1991 Referendum ends September 30, 2001

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As the recipients of the largest share of funds under this program, does the School Board or Seminole County plan to borrow against the projected revenues from this tax?

No. Both entities are committed to building improvements with these monies and not using this tax to finance debt.

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Will funds be invested to create interest-based revenues and what would that money be used for?

The revenue received absolutely will be invested to earn interest until it is spent. That interest income would be spent on the project list authorized in the referendum. It will help to off-set the effects of inflation and other types of cost increases which accrue during a multi-year program because of changes in community standards or other factors. Seminole County's interest rate in recent years has averaged about 5%.

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Will funds be at least partially invested to create interest based revenues?

Yes

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What interest rate will the funds be invested?

The best rates available.

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What assurances are there that the designated roads will be improved?

The County will use the sales tax proceeds (along with other committed County revenues of local option gas tax and impact fees) to make the road improvements and meet the schedule.

Section 2 of the Sales Tax Interlocal Agreement states that the "… County shall … diligently prosecute the projects on major roads in Seminole County listed in Exhibit "B" … "and" … the County and the signatory municipalities shall … diligently prosecute the transportation projects listed in Exhibit "C" … "and" …revenues derived from the local government infrastructure surtax … will be used to fund the identified improvements and other necessary transportation improvements by constructing and reconstructing transportation facilities."

In addition to these formal arrangements (Interlocal and Resolution), the County and Cities are further committed to the listed improvements their adopted Comprehensive Plans and Transportation and Capital Improvement Elements.

Because Seminole County and the Cities must review and update their Capital Improvements Element (CIE) annually, some adjustment to the list may be made. These adjustments would only be done if projected growth and road needs change.

The public will be involved. Florida Statute Chapter 163 requires the County and Cities to advertise and hold public hearing on proposed updates to any part of the Comprehensive Plan – I including the CIE.

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