What is an Infrastructure Sales Surtax?

What you’ll see on the November 6, 2018 ballot


To enhance safety, mobility, and hurricane preparedness in Collier County and its cities by constructing, repairing, and maintaining roads, bridges, signals, sidewalks, parks, evacuation shelters, governmental, and emergency services facilities; acquire land and support construction for workforce housing and career and technical training, veterans’ nursing home and expand mental health facilities; shall the County levy a one-cent sales surtax beginning January 1, 2019, and automatically ending December 31, 2025, with oversight by citizen committee?

How Does it Work?

Collier voters must approve an infrastructure sales before it can go into effect. The money generated from a seven-year, infrastructure sales surtax will be spent on transportation and mobility improvements, facilities and capital replacements, and infrastructure projects to enhance the quality of life for Collier citizens.

How can Infrastructure Sales Surtax Funds be Used?

  • Fix traffic bottlenecks

  • Repair and replace aging bridges

  • Provide for public safety and Sheriff’s Office needs

  • Improve structures for hurricane preparedness

  • Purchase land for workforce housing

  • Expand career and technical training opportunities

  • Address critical mental health and addiction needs

  • Help Collier County compete for a Veterans’ Nursing Home

What are the Alternatives?

A one-cent sales tax increase is estimated to generate about $70 million a year countywide. For a family of three living in the mid-point income level in Collier County, between $50,000 and $60,000, the increase in a sales tax in a year would be about $125.

  • A .7927 millage rate increase would be needed to generate $70 million a year, based on current taxable values.
  • A .7927 ad valorem tax increase would mean a person who owns a home in Collier County worth $331,000 would pay an additional $265 in property taxes in a year, with no mandatory end date.
  • The county can borrow the money to pay for the projects.
  • However, if Collier County were to borrow money to complete the identified projects, the interest costs on the loan would be between $150-$200 million depending on the interest rate and term of the bond. The money required to pay off the loan would be taken from existing general fund taxes and fees and may require additional taxes and fees.
  • Collier County charges the maximum allowed rate for impact fees but that is not enough revenue is collected to meet the needs.
  • Impact fees may only be used to fund capacity improvements necessitated by growth (added lanes, new roads, etc.) Several projects on the list are not eligible to receive funding from impact fees. Backlog projects, operational improvements or stand-alone bike lanes or sidewalk projects cannot utilize impact fees.
  • The current impact fee collections are not keeping pace with the need and do not cover the cost of these roadway projects. It would take 9.5 years to cover the shortfall with impact fee collections.
  • Since 2005, the County’s general fund has loaned approximately $100 million to various impact fee funds excluding road impact fees.

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