ORLANDO, Fla. — Orange County Mayor Jerry Demings updated Orlando officials Monday on the proposed penny sales tax increase.


What You Need To Know

  • Penny increase would raise Orange County’s sales tax to 7.5% to fund transportation projects

  • Penny sales tax would apply to first $5k in sales

  • Essential food items, prescriptions drugs, utilities would be exempt

The measure would raise the sales tax to 7.5% to provide nearly $600 million per year for transportation projects, including expanding Lynx and SunRail stops. The tax would apply to the first $5,000 in sales, but essential food items, prescription drugs and utilities would be exempt.

Demings explained to Orlando Mayor Buddy Dyer and city councilors at a morning meeting that this could serve as a dedicated funding source to improve public transportation. He says federal funding would not be enough for the additions they hope to make and that the project is not eligible to use tourist development tax dollars.

Demings says he is looking toward the future with this measure. “It is a solution that in the next 40 to 50 years, perhaps children who are not yet born will be able to benefit from this,” he said.

Orange County Mayor Jerry Demings presents his proposal to increase the sales tax to raise money for transportation in Orange County. (Spectrum News)
Orange County Mayor Jerry Demings presents his proposal to increase the sales tax to raise money for transportation in Orange County. (Spectrum News)

Under the measure, 45% of funding would go to transit projects. The county and cities would get 45% and 10% respectively to maintain roadways and safety.

Tracy Klinger, who owns the boutique, Frank, in Winter Park supports this plan. She wants to see more SunRail stops come to the city to help improve foot traffic downtown, where parking can be hard to come by.

“While I don’t like the extra penny, the long-term for me is very positive,” she said.

Winter Park resident Andre Teixeira feels now is not the time for a tax raise.

“It’s gonna make things even more unaffordable,” he said, pointing to rising gas and grocery prices.

Demings is encouraging residents to take this survey to share their thoughts. He will present his draft proposal before the board of county commissioners on March 22. Then during a public hearing on April 26, commissioners will decide whether to place the referendum on the November ballot.