Below are some frequently asked questions about Broward County’s 30-year, one percent surtax to fund transportation improvements, approved by voters in November 2018.
What does an additional 1 percent sales tax mean to the average household?
About 47 cents per day! For every $1 you spend on a taxable item, you will pay one cent more in sales tax. The average Broward County household spends $60,090 per year. (Source: Applied Geographic Solutions, 2018) Only about 29 percent of those expenses are subject to sales tax. (Source: BLS 2016 Consumer Expenditure Patterns – Miami Metro) That means the average Broward County household will spend an additional $173.96 each year – or 47 cents per day – as a result of the transportation surtax.
What items are subject to the sales tax?
Generally speaking, prepared ready-to-eat food (such as food from restaurants), and all tangible goods are taxable. Tangible goods include clothing, appliances, electronics, jewelry and other items you can see and touch. Medicines, medical equipment and groceries (if not prepared and sold for immediate consumption) are not taxable. The additional one cent tax is referred to as a "discretionary surtax." A discretionary surtax is applied to the first $5,000 of the sales amount on the sale, use, lease, rental, or license to use any item of tangible personal property. The $5,000 cap does not apply to rentals of real property, transient rentals, or services. The Florida Department of Revenue provides a list of the items that are taxable and those that are exempt from tax.
When will the tax expire?
There is a 30-year timeframe for the tax to be in effect which coincides with the County's 30-year project-based transportation plan. Once the tax expires, it can only be renewed by the voters of Broward County.
The first distribution of surtax revenues was received by Broward County from the Department of Revenue late March 2019
How much does a penny sales tax generate?
The transportation surtax entered into effect on January 1, 2019. Therefore, revenues from FY2019, which covered the period of October 1, 2018 through September 30, 2019, (i.e. only 9 full months of surtax revenue receipts) generated $282,631,200. FY2020, a year like no other in recent memory because of the COVID-19 impacts, saw a $62M decline over surtax revenue projections — from $361M to $299M. With the economic uncertainty of COVID 19 remaining, full impacts on revenue projections are still unknown.
Who pays the tax?
Anybody who purchases taxable items or services within Broward County will pay the surtax. This includes residents, visitors and businesses
How are transportation projects approved?
All county and municipal projects funded by the transportation surtax are evaluated for eligibility by the Independent Transportation Surtax Oversight Board. After eligibility has been determined, the Oversight Board submits a list of eligible projects to the Board of County Commissioners for their budgetary approval.
How can my company bid on a project?
Project work will be promoted through the Broward County Purchasing Division Periscope Holdings system when ready for bid. We encourage you to register for free to receive solicitation notifications and respond electronically.
Vendors can complete the free registration process online in just a few minutes.
Broward’s Office of Economic and Small Business Development is spearheading a “30% for 30 Years” campaign for Broward County Certified Small Businesses (CBEs) for all eligible surtax projects. Over $53 M in project opportunities estimated to be available for Eligible Certified Businesses Every Year Until 2049.
How do I find out about projects?
View more information on surtax-funded projects on our Project Dashboard.