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Q&A – Should State & Local Governments Suspend Gas Taxes?
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Today’s Entry: Why can’t our state and local governments help in the effort by reducing or suspending gas taxes?
Bottom Line: Well, you’re on point – they could. For that matter the federal government could as well. And in fact, Governor DeSantis’ budget calls for doing just that and well in advance of the current crisis which has driven gas prices to record highs. It was on November 22nd Governor DeSantis introduced this as part of his budget proposal. Quoting the press release: Today Governor Ron DeSantis announced that during the upcoming legislative session, he is proposing more than $1 billion in gas tax relief for Floridians. This gas tax holiday will save up to $200 for the average Florida family. And quoting Governor DeSantis: Gas prices have been rising due to inflationary pressures from bad federal policies, so we here in Florida need to step up and provide relief to our citizens. Today, I am proposing that during session, the Florida Legislature provide more than $1 billion in gas tax relief for Florida families. This will have a positive impact on millions of Floridians.
DeSantis made that a priority as gas prices had already risen in 2021 from $2.16 per gallon when Joe Biden became president to $3.34 in November at the time of that announcement. With record gas prices today it’s even more on point and no doubt something most Floridians would like to see happen. As we’re down to the nitty gritty in the state legislative session you’d have to like the chances of the Governor getting this approximate $200 gas tax break per Florida family this year. For good measure it can’t hurt to contact your state senator and representative to ensure they’re supportive of it. But you also raise the important point of the taxes imposed by local governments as well. Here’s how much of every gallon of gas is tax...
- Federal: 18.4 cents
- State of Florida: 34.4 cents
- County: 12 Cents
The state providing tax relief is a good place to start as it accounts for the largest share of the taxing burden. That said, the conversation doesn’t have to stop there. Broward, Miami-Dade and Palm Beach Counties currently tax gas at the highest rate allowed under Florida law. They’ve been doing this for years. This happens through what’s known as a “9th cent tax” along with local option taxes on gas. With record windfall property tax revenues pouring into the coffers of local governments, and tourism records once again being set in South Florida, the case can certainly be made that local governments should provide relief as well. After all most Florida counties aren’t taxing drivers near as much as South Florida’s governments.
Of course, the reason we’re having this conversation is because of the bigger problem. That of the United States having ceded energy independence under President Trump, to becoming energy reliant on foreign actors who’re often hostile to the United States in return. The best way to immediately provide relief would be a resumption of the Trump policy, though as President Biden announced yesterday – that won’t be happening. You can almost certainly count on gas tax relief coming from the state of Florida. You’ll likely have to create a movement of sorts to obtain relief at the local level – though perhaps it’s worth pursuing.
South Florida’s governments have long experienced record revenue windfalls led by Florida’s ever-appreciating real-estate market without providing relief. My personal preference would be property tax relief, where every South Floridian stands to benefit – though simply seeing local governments pay greater fiscal consideration to us in any regard would be a real plus.