County’s sales tax increase takes effect

One-cent hike may yield $2.7 billion over the next 10 years

Palm Beach County shoppers are paying more in sales tax.

A 1-cent sales tax increase took effect Sunday. In November, voters approved raising the sales tax from 6 cents per dollar to 7 cents.

County officials estimate the tax will generate roughly $2.7 billion in new revenue over the next 10 years to improve roads, bridges, schools and government buildings.

County Administrator Verdenia Baker said the county will start getting money from the sales tax increase in March and projects will begin later in the year.

“You have to have the money in hand before you sign the contracts,” she said. “We figure it’ll be summer or fall before you start seeing the signs that the projects are paid for with sales tax dollars.”

School officials said they were able to use existing funds to start work on $43 million in repairs before the end of 2016 thanks to the passage of the sales tax increase.

The tax is capped on the first $5,000 of a large purchase, meaning it now costs about $50 more to buy a car. Some items, such as groceries, residential rent and medicine, are exempted.

Schools will get half of the sales tax revenue; the county will receive 30 percent; and the county’s 39 cities will get the remaining 20 percent.

The tax will end once $2.7 billion is raised or in 10 years, whichever comes first.

County commissioners ap-

“We figure it’ll be summer or fall before you start seeing the signs that the projects are paid for with sales tax dollars.” Verdenia Baker, county administrator

proved a 19-member oversight committee to monitor how the county spends its sales tax dollars. The school system has formed an 18-member committee.

The Palm Beach County League of Cities will also form an oversight committee, said Richard Radcliffe, director of the league. City officials could also elect to form their own committees.

A similar measure to raise the sales tax in Broward County failed in November, and that county’s rate will remain at 6 cents per dollar.

Palm Beach County Commissioner Steven Abrams took to Facebook in the days before the tax took effect, joking that everyone had a few more days to save some money on a big purchase.

But he said his constituents will be appreciative once they see the work happening in their neighborhoods.

“We intend to address the most critical projects first,” Abrams said. “If there’s a hole in the street, we’ll deal with those types of issues first.”