Citrus County Local Option Sales Tax Proposal

A Plan to Strengthen Our Roads, Infrastructure, and Community Services

Citrus County is exploring the introduction of a 1% Local Option Sales Tax, often called a “penny tax,” to fund critical infrastructure and community improvements. This proposal is not about raising taxes for the sake of raising revenue—it’s about ensuring Citrus County has the resources needed to keep pace with growth, maintain safe and functional roads, protect neighborhoods from flooding, support emergency responders, and enhance the quality of life for residents.

This page explains the proposal in depth: how it works, why now, and how it directly benefits the people of Citrus County.

Why Citrus County Is Considering a Local Sales Tax

Citrus County is in a unique position. According to the county’s analysis, we are the only county among Florida’s 67 counties that has never enacted a Local Option Sales Tax to support local needs (page 3). The only other county that once lacked such a tax—Collier County—now has one in place. In other words, Citrus County stands alone in relying exclusively on state sales tax and property taxes to maintain and improve its infrastructure.

This creates a challenge:

As our population grows and infrastructure ages, the need for major investment increases. Yet our revenue sources have not changed to keep up. Without an additional mechanism for funding, Citrus County faces mounting costs for road paving, widening, stormwater drainage improvements, emergency services equipment, and other essential services. A Local Option Sales Tax provides a dedicated, voter-approved way to fill these gaps without placing the full burden on property owners.

How the Local Option Sales Tax Works

Under Florida Statutes Section 212.055(2), counties may levy up to a 1% surtax on top of the state sales tax rate of 6% (page 4). This local penny is added to purchases in Citrus County but includes several important safeguards:

1. Essential items are not taxed.

Just like the state sales tax, the local surtax would not apply to groceries, prescription medications, medical supplies, or medical services. Residents won’t pay more for necessities.

2. Large purchases are capped.

The county surtax applies only to the first $5,000 of any major purchase (page 5), meaning residents buying vehicles or appliances pay no more than $50 extra—the equivalent of one penny per dollar up to that cap.

3. Visitors help pay for local improvements.

This is one of the most important benefits of a local sales tax. An estimated 20–25% of all surtax revenue would be generated by visitors shopping, dining, and using services in Citrus County (page 5). That means tourists—not homeowners—cover a substantial portion of our infrastructure improvements.

4. The tax must be approved by voters.

This measure cannot be imposed by the Board of County Commissioners alone. It must appear on a general election ballot and receive more than 50% voter support to take effect (page 4). Citrus residents decide whether it moves forward.

5. The duration is limited and defined.

While the state imposes no limit on how long a surtax can last, Citrus County intends to set a sunset period—most survey respondents preferred a 10-year duration (pages 9 & 13).
A limited timeframe ensures transparency, gives voters control, and allows the county to use the revenue to secure bonds for large projects.

How Much Revenue Would This Penny Generate?

Based on county estimates, a 1% Local Option Sales Tax would generate approximately $25 million per year (page 5).

This revenue would be shared among:

• Citrus County (93.5%)
• City of Inverness (4.5%)
• City of Crystal River (2.0%)

These allocations reflect population formulas set by statute (page 6). This dedicated revenue stream is critical to addressing long-term infrastructure needs without relying solely on fluctuating state funds or property tax increases.

What Residents Said: Priorities for Investment

Community input has been central to shaping this proposal. In two rounds of public surveying, residents identified the areas they believe most urgently need funding.

According to the survey results (pages 10 & 14), the highest priorities were:

Road Paving and Road Widening

Road repair was by far the most selected priority, with hundreds of residents identifying it as the county’s most urgent infrastructure need. The Local Option Sales Tax would finally allow Citrus County to begin addressing the backlog of deteriorating roads, improving safety and reducing vehicle wear and tear.

Stormwater Drainage Improvements

Flooding remains a persistent concern during heavy rains. Residents emphasized the need to upgrade outdated drainage systems to prevent neighborhood flooding, protect property, and safeguard water quality.

Park Improvements

From playgrounds to trails, residents want parks that reflect Citrus County’s natural beauty and serve families, seniors, and visitors alike. Funds could support new amenities, accessibility improvements, and maintenance of aging facilities.

Land Conservation

Many residents want to preserve Citrus County’s natural landscapes, springs, and wildlife areas. Sales tax revenue could help protect environmentally sensitive lands and maintain the county’s rural character.

Fire/EMS Equipment and Public Safety

Survey respondents highlighted Fire/EMS equipment as an essential investment area. These funds would support updated vehicles, protective gear, and life-saving technologies—critical for improving emergency response times and community safety.

Other Community Priorities

Residents also mentioned specific needs including animal shelter improvements, transportation enhancements, medical services, and Sheriff’s Office resources.

These results point to a shared vision: residents want safer roads, cleaner environments, stronger emergency services, and enhanced public spaces.