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Honorable Chairman Oliver G. Gilbert, III <br />and Members, Board of County Commissioners <br />Page 2 <br />Background <br />State law permits counties to impose up to a six -cent local option gas tax on motor fuel and special <br />fuels. Miami -Dade County imposed a four -cent local option gas tax on September 1, 1983, and an <br />additional two cents were imposed in 1985 bringing the total tax collected to six cents. The current <br />local option gas tax (Ordinance 93-53) will expire on August 31St, 2023. Miami -Dade County and the <br />municipalities within the County share approximately $63.764 million generated by the six -cent local <br />option gas tax. The county and cities rely on this revenue to support their respective roadway/public <br />transportation expenditures. Permissible uses of the tax are: <br />a. Public transportation operations and maintenance <br />b. Roadway and right-of-way maintenance and equipment and structures used primarily for the <br />storage and maintenance of such equipment <br />c. Roadway and right-of-way drainage <br />d. Street lighting <br />e. Traffic signs, traffic engineering, signalization and pavement markings <br />f. Bridge maintenance and operations <br />g. Debt service and current expenditures for transportation capital projects in the above <br />program areas, including construction or reconstruction of roads <br />The proceeds from the existing tax are distributed based on a formula in an interlocal agreement <br />originally established by the parties in substantially the form provided in Resolution No. R-903-98, <br />which currently allocates 70.4 percent of the net proceeds to Miami -Dade and 29.6 percent to all <br />eligible incorporated cities. The municipal share is distributed among cities based on a weighing of <br />population (75 percent) and centerline miles of roadway maintained (25 percent) for each city as <br />compared to the total population and centerline mile figures for the entire incorporated area. The <br />County agrees to use its best efforts to spend two-thirds of its share within the incorporated area of <br />the County. The current County share is approximately $44.890 million programmed for FY 2023-24. <br />To meet statutory requirements, a majority of the incorporated area population of Miami -Dade County <br />must enter into the agreements. <br />Edward Marquez <br />Chief Financial Officer <br />MDC003