'Taxpayers need a break': But League of Cities argues county is replacing one tax with another

Saying “taxpayers need a break,” Palm Beach County commissioners say they will let the 1% Infrastructure Sales Tax die on Dec. 31, 2025, to the dismay of the League of Cities, whose members passed resolutions urging that the tax be renewed.

County commissioners made it clear during a meeting Feb. 27 with the league that their preference is for a transportation surtax and that continuing the infrastructure tax could make it difficult for voter approval of the transportation surtax.

Voters approved a referendum in 2016 for a 1% sales tax increase to pay for infrastructure improvements for schools, the county and municipalities. The tax was scheduled to end in 10 years or sooner if $2.7 billion was collected. And finance officials say the $2.7 billion mark will be reached early, resulting in the levy ending Dec. 31, 2025.

With the county's population significantly increasing every year and tourism on the rise, infrastructure tax revenue totaled more than $400 million in 2023, twice what was collected in 2017. Half of it goes to the school board, 30% to the county and 20% to municipalities.

The money can be used to construct infrastructure and acquire land for recreation and conservation. The surtax applies to all transactions subject to the state sales tax. Already, $2.3 billion has been collected. More than 400 projects have been funded, and 128 of them have been completed.

Among them are the aquatic complex at Lake Lytal Park and the change to artificial surfaces at county athletic fields from grass. In addition, infrastructure tax funds were used to build the new Canyon District Park west of Boynton Beach.

The League of Cities called for the meeting to urge the infrastructure tax be extended. It reported that 27 of the county's 39 municipalities support the move, and other resolutions of support are pending. City officials said refusing to extend the tax will result in a number of small cities coming to the county asking for help pay for capital projects.

The meeting turned contentious at times with municipal officials saying the infrastructure tax funds are an important source of revenue for them.

County Commissioner Mack Bernard, however, noted that the referendum anticipated it ending at some point, adding: “Our taxpayers deserve a break, and we need to honor the provision that called for a sunset.”

What is the difference between the transportation surtax and the infrastructure tax?

The break may be short-lived as commissioners voiced their strong support for a transportation surtax, arguing that the time has come for Palm Beach County to do what Broward and Miami Dade Counties have done — adopt a permanent funding source for transit.

Voters would have to approve a transit referendum — as they did for the infrastructure tax — that is expected to be placed on the November 2026 ballot, a year after the infrastructure tax expires.

“You say you want to give people a break,” said Belle Glade Mayor Steve Wilson. “What break? You are replacing one tax with another. What happens to cities that are falling apart? We need this. Twenty-seven towns say so. Why does that not convince you?”

MORE: $856 million light rail line proposed to link Wellington to downtown West Palm

South Bay City Manager Leondrae Camel questioned how county commissioners can talk about giving taxpayers a break and then in the same breath create a new surtax for transportation.

“We are all taxpayers," Hypoluxo Mayor Michael Brown said. “These IST projects help taxpayers. We were able to do a septic to sewer project with IST funds. That helps everyone in the county.”

Bernard said the consensus among commissioners is that there is a greater need for a transportation surtax. Traffic congestion is one of the major issues facing the county, he said, adding he was also concerned about having two surtaxes in place at once.

“What you heard from us today is that we want to look at transportation,” Bernard said, noting that a transportation surtax can be used to improve municipal roads and bridges. Other local transit projects could receive funding as well, he said, adding:

“We want this (IST) to end. The agreement was 10 years or $2.7 billion. That is what the voters were told.”

What projects would a transportation surtax be used for in Palm Beach County?

The day before the League meeting, the Palm Beach Transportation Planning Agency held a forum that featured officials from Broward and Miami-Dade counties who detailed the projects they have been able to fund through their transportation surtax.

Commissioner Marci Woodward, who attended the event, noted how the two counties have been able to leverage their transportation surtax funds to obtain millions of dollars in federal grants that they otherwise would never have obtained.

"Right now, there are grants out there that we (Palm Beach County) cannot even apply for," she noted.

Brian Ruscher, a TPA spokesman, said the agency looks forward to working with the cities and the county to help develop a transportation surtax plan. The agency prioritizes projects eligible for state and federal funding. The surtax would help to move many projects from the unfunded list to the funded one, Ruscher said.

A transportation surtax can be used to pay for large mass transit projects such as a light rail project from the Mall at Wellington Green to downtown West Palm Beach or a Tri-Rail link to the Veterans Administration center in Riviera Beach. The Florida Department of Transportation and Tri-Rail are studying the feasibility of the two projects.

Miami-Dade and Broward counties use their surtax for the operation and maintenance of bus systems. Miami-Dade used it to help build the Miami Central depot in downtown Miami for Tri-Rail and Brightline.

County Commissioner Gregg Weiss said in an interview that there is “an ever increasing need” to address transportation issues. He envisions funds from a surtax being used to help pay for smart signalization that improves the flow of traffic throughout the county and a coastal link that connects cities from Boca Raton to Jupiter.

“Once we have a list of projects, we can go to the voters to ask if they are willing to provide a dedicated funding source to pay for them,” he added.

County Mayor Maria Sachs said it will take a concerted effort with the cities to have the referendum approved. She expects the cities to support it once local projects are identified.

Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government and transportation. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.

This article originally appeared on Palm Beach Post: Palm Beach County to sunset 1% infrastructure sales tax