Agenda 03/25/2025 Item #17D (Ordinance - Providing for the reimposition of the Five-Cent Local Option Fuel Tax, effective January 1, 2026, and continuing through December 31, 2055)3/25/2025
Item # 17.D
ID# 2025-816
Executive Summary
Recommendation that the Board adopt an Ordinance amending Collier County Ordinance No. 2003-36, as amended,
repealing and replacing Amending Ordinance No. 2022-30, providing for the reimposition of the Five-Cent Local Option
Fuel Tax upon its termination on December 31, 2025, effective January 1, 2026, and continuing through December 31,
2055.
OBJECTIVE: To obtain Board approval of an Ordinance providing for the reimposition of the Five-Cent Local Option
Fuel Tax as provided for in Section 336.025(l)(b), Florida Statutes, upon its termination on December 31, 2025, through
the year 2055.
CONSIDERATIONS: Section 336.025(1)(b), Florida Statutes, authorizes the County to levy a Five-Cent Local Option
Fuel Tax. Based upon that authority, the Board adopted Ordinance No. 93-48 on August 3, 1993, providing for the
imposition of the additional Five-Cent Local Option Fuel Tax upon every gallon of motor fuel and diesel fuel sold in
Collier County and taxed under the provision of Chapter 206, Florida Statutes. On March 13, 2001, the Board adopted
Ordinance 2001-26 extending the levy of the tax up to the year 2024, and thereafter further extended the level through
December 31, 2025, by enacting Ordinance 2003-36 on June 24, 2003.
On May 24, 2022, the Board adopted Resolution 2022-93 providing notice of its intent to reimpose the additional Five-
Cent and Six-Cent Local Option Fuel Taxes pursuant to sections 336.025(1)(a) and (b), effective January 1, 2026
through and including December 31, 2055. Section 336.025(1)(b), Florida Statutes, provides that the levy of the
additional Five-Cent Local Option Fuel tax may be reimposed or extended by an ordinance adopted by a majority vote
of the members of the Board.
On July 12, 2022, the Board adopted Ordinance 2022-30 amending Ordinance No. 2003-36 providing for reimposition
of the Five-Cent Local Option Fuel Tax upon its expiration on December 31, 2025, effective January 1, 2026 up to and
including December 31, 2055.
After review by the Florida Department of Revenue, it opined Ordinance No. 2022-30 invalid due to inconsistent timing
with Florida Statute provisions under 336.025(1)(b)1, which provides “All impositions and rate changes of the tax shall
be levied before October 1 to be effective January 1 of the following year.” To remediate that technicality, it is
necessary to adopt a new ordinance in 2025 to meet the timing provision outlined in the Statute and ensure continued
collections of the Five-Cent Local Option Fuel Tax.
On February 25, 2025, the Board adopted Resolution 2025-44, providing notice of intent to extend the Five-Cent Local
Option Fuel Tax and instructing staff to advertise the appropriate ordinance.
The current Transportation five-year Capital Improvement Element (“CIE”) has a projected shortfall in excess of $300
million. Reimposing the Five-Cent Local Option Fuel Tax upon its expiration on December 31, 2025, provides
financing flexibility and positions the County to capitalize on fixed interest rates; greater coverage ratios; and an
extended repayment horizon which increases funding capacity. Bond proceeds would fund identified transportation
system assets deemed “poor” in the inventory, transportation system capacity improvements, and expansion of the
eastern Collier County transportation grid. Projects identified in the five-year CIE that could be financed include Collier
Boulevard (Green Boulevard to Main Golden Gate Canal), Vanderbilt Beach Road Extension, Goodlette Road
(Vanderbilt Beach Road to Immokalee Road), Wilson Boulevard (Golden Gate Boulevard to Immokalee Road), and
Everglades Boulevard (Vanderbilt Beach Road to Oil Well).
A redetermination of the method of distribution has previously been made and approved by the Board as provided in
Section 336.025, or as otherwise provided by law, and such taxes shall be distributed based on the historic transportation
expenditures of the county/cities. The distribution shall be recalculated and established prior to the reimposition of the
tax on January 1, 2026.
This item is consistent with the Collier County strategic plan objective to design and maintain an effective transportation
system to reduce traffic congestion and improve the mobility of our residents and visitors.
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3/25/2025
Item # 17.D
ID# 2025-816
FISCAL IMPACT: Revenues generated from the Five-Cent Local Option Fuel Tax total approximately $8.3 million
annually. The County's portion of this revenue is approximately $7.1 million, with the remainder split between the City
of Naples, City of Marco Island, and Everglades City. The reimposition of the Five-Cent Local Option Fuel Tax will
provide funding flexibility and allow for debt service payments related to future transportation-related financing. Excess
funding would be programmed annually for pay as you go transportation network capital and maintenance consistent
with statutory guidelines. Fuel tax revenues are deposited within Gas Tax Fund (3083).
GROWTH MANAGEMENT IMPACT: The additional Five-Cent Local Option Fuel Tax is a principal revenue
source of the Transportation Element in the Collier County Growth Management Plan.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a super majority vote for
Board approval. —SRT
RECOMMENDATIONS: That the Board approve and adopt an Ordinance amending Collier County Ordinance No.
2003-36, as amended, providing for the reimposition of the Five-Cent Local Option Fuel Tax upon its termination on
December 31, 2025, effective January 1, 2026, and continuing through December 31, 2055.
PREPARED BY: Christopher Johnson, Director, Corporate Financial and Management Services
ATTACHMENTS:
1. Five Cent Fuel Tax Ordinance 02.13.25 srt
2. legal ad - agenda ID 25-816 - 5 cent fuel tax ordinance 3-25-25 BCC
3. Business Impact Estimate - 5 Cent Fuel Tax - agenda ID 25-816
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NOTICE OF PUBLIC HEARING
NOTICE OF INTENT TO CONSIDER AN ORDINANCE
Notice is hereby given that a public hearing will be held by the Collier County Board of County Commissioners
commencing at 9:00 a.m. on March 25, 2025, in the Board of County Commissioners meeting room, third floor, Collier
Government Center, 3299 East Tamiami Trail, Naples, FL, to consider:
AN ORDINANCE AMENDING THE CODE OF LAWS AND ORDINANCES OF COLLIER COUNTY
SECTION 126-28, PROVIDING FOR THE REIMPOSITION OF THE FIVE CENTS OF ADDITIONAL
LOCAL OPTION FUEL TAX UPON EVERY GALLON OF MOTOR FUEL SOLD IN COLLIER COUNTY
UPON ITS TERMINATION ON DECEMBER 31, 2025, EFFECTIVE JANUARY 1, 2026, UP TO AND
INCLUDING DECEMBER 31, 2055, WHICH IS TAXED UNDER THE PROVISIONS OF CHAPTER 206,
FLORIDA STATUTES; REPEALING ORDINANCE NO. 2022-30; PROVIDING FOR CONFLICT AND
SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND
PROVIDING AN EFFECTIVE DATE.
A copy of the proposed Ordinance is on file with the Clerk to the Board and is available for inspection. All interested
parties are invited to attend and be heard.
All persons wishing to speak on any agenda item must register with the County Manager prior to presentation of the
agenda item to be addressed. Individual speakers will be limited to 3 minutes on any item. The selection of an individual
to speak on behalf of an organization or group is encouraged. If recognized by the Chairman, a spokesperson for a group
or organization may be allotted 10 minutes to speak on an item. Written materials intended to be considered by the
Board shall be submitted to the appropriate County staff a minimum of 7 days prior to the public hearing. All materials
used in presentations before the Board will become a permanent part of the record.
As part of an ongoing initiative to encourage public involvement, the public will have the opportunity to provide public
comments remotely, as well as in person, during this proceeding. Individuals who would like to participate remotely
should register through the link provided within the specific event/meeting entry on the Calendar of Events on the
County website at www.colliercountyfl.gov/our-county/visitors/calendar-of-events after the agenda is posted on the
County website. Registration should be done in advance of the public meeting or any deadline specified within the
public meeting notice. Individuals who register will receive an email in advance of the public hearing detailing how
they can participate remotely in this meeting. Remote participation is provided as a courtesy and is at the user’s risk.
The County is not responsible for technical issues. For additional information about the meeting, please call Geoffrey
Willig at 252-8369 or email to Geoffrey.Willig@colliercountyfl.gov.
Any person who decides to appeal any decision of the Board will need a record of the proceedings pertaining thereto
and therefore, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is based.
If you are a person with a disability who needs any accommodation in order to participate in this proceeding, you are
entitled, at no cost to you, to the provision of certain assistance. Please contact the Collier County Facilities Management
Division, located at 3335 Tamiami Trail East, Suite 101, Naples, FL 34112-5356, (239) 252-8380, at least two days
prior to the meeting. Assisted listening devices for the hearing impaired are available in the Board of County
Commissioners Office.
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
BURT L. SAUNDERS, CHAIRMAN
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Business Impact Estimate
This form should be included in the agenda packet for the item under which the proposed
ordinance is to be considered and must be posted on the County’s website by the time notice of
the proposed ordinance is published.
Published on County website by: March 5, 2025
Proposed ordinance’s Short Title:
AN ORDINANCE AMENDING THE CODE OF LAWS AND ORDINANCES OF COLLIER
COUNTY SECTION 126-28, PROVIDING FOR THE REIMPOSITION OF THE FIVE
CENTS OF ADDITIONAL LOCAL OPTION FUEL TAX UPON EVERY GALLON OF
MOTOR FUEL SOLD IN COLLIER COUNTY UPON ITS TERMINATION ON
DECEMBER 31, 2025, EFFECTIVE JANUARY 1, 2026, UP TO AND INCLUDING
DECEMBER 31, 2055, WHICH IS TAXED UNDER THE PROVISIONS OF CHAPTER
206, FLORIDA STATUTES; REPEALING ORDINANCE NO. 2022-30; PROVIDING
FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE
OF LAWS AND ORDINANCES; AND PROVIDING AN EFFECTIVE DATE.
This Business Impact Estimate is provided in accordance with section 125.66(3), Florida
Statutes. If one or more boxes are checked below, this means the County is of the view
that a business impact estimate is not required by state law1 for the proposed ordinance,
but the County is, nevertheless, providing this Business Impact Estimate as a courtesy
and to avoid any procedural issues that could impact the enactment of the proposed
ordinance. This Business Impact Estimate may be revised following its initial posting.
☐ The proposed ordinance is required for compliance with Federal or State law or
regulation; ☐ The proposed ordinance relates to the issuance or refinancing of debt;
☒ The proposed ordinance relates to the adoption of budgets or budget
amendments, including revenue sources necessary to fund the budget; ☐ The proposed ordinance is required to implement a contract or an agreement,
including, but not limited to, any Federal, State, local, or private grant or other
financial assistance accepted by the county government; ☐ The proposed ordinance is an emergency ordinance; ☐ The ordinance relates to procurement; or ☐ The proposed ordinance is enacted to implement the following:
a. Development orders and development permits, as those terms are defined in
Section 163.3164, and development agreements, as authorized by the Florida
1 See Section 125.66(3)(c), Florida Statutes.
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Local Government Development Agreement Act under Sections 163-3220-
163.3243;
b.Comprehensive Plan amendments and land development regulation
amendments initiated by application by a private party other than Collier
County;
c.Sections 190.005 and 190.046, Florida Statutes, regarding community
development districts;
d.Section 553.73, Florida Statutes, relating to the Florida Building Code; or
e.Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code.
In accordance with the provisions of controlling law, even notwithstanding the fact that an
exemption noted above may apply, the County hereby publishes the following
information:
1. Summary of the proposed ordinance (must include a statement of the public purpose,
such as serving the public health, safety, morals and welfare):
The proposed Ordinance repeals and replaces Collier County Ordinance No. 2022-
30 to remediate a technicality to meet the timing provision outlined in Florida
Statute 336.025(1)(b)1, “All impositions and rate changes of the tax shall be levied
before October 1, to be effective January 1 of the following year.” The proposed
Ordinance provides for the reimposition of the Five-Cent Local Option Fuel Tax,
which will provide funding through December 31, 2055 for debt service payments
related to future transportation related financing and pay as you go transportation
network capital and maintenance consistent with statutory guidelines.
2.An estimate of the direct economic impact of the proposed ordinance on private, for-
profit businesses in the County, if any:
(a) An estimate of direct compliance costs that businesses may reasonably incur;
(b)Any new charge or fee imposed by the proposed ordinance or for which businesses
will be financially responsible; and
(c) An estimate of the County’s regulatory costs, including estimated revenues from any
new charges or fees to cover such costs.
The Five-Cent Local Option Fuel Tax produces approximately $8.3 million annually.
The Board adopted Ordinance No. 93-48 on August 3, 1993 providing for the
original imposition of this tax, which will simply be reimposed and extended by the
adoption of the proposed Ordinance. The County doesn’t anticipate any
additional regulatory costs in the reimposition of the Five-Cent Local Option Fuel
Tax.
3.Good faith estimate of the number of businesses likely to be impacted by the proposed
ordinance:
There are approximately 115 retail fuel stations and approximately 19 Marine fuel
stations in Collier County. Any business utilizing fuel purchased in Collier County
would be impacted by this ordinance.
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4. Additional information the governing body deems useful (if any):
On July 12, 2022 the Board adopted Ordinance 2022-30 amending Ordinance No.
2003-36 providing for reimposition of the Five-Cent Local Option Fuel Tax upon its
expiration on December 31, 2025, effective January 1, 2026 up to and including
December 31, 2055.
After careful review from the Florida Department of Revenue that ordinance was
been deemed unenforceable by the Department due to the enactment’s
inconsistent timing with Florida Statute provisions under 336.025(1)(b)1, which
provides “All impositions and rate changes of the tax shall be levied before October
1 to be effective January 1 of the following year.” To remediate that technicality,
the County is adopting a new ordinance in 2025 to meet the timing provision
outlined in the Statute and ensure continued collections of the Five-Cent Local
Option Fuel Tax.
Fuel Station data was provided by the Collier County Solid & Hazardous Waste
Management Division.
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