One-Cent Sales Tax Projects — Indian River County, Florida

The Optional One-Cent Sales Tax is a 1% county surtax that Indian River County voters first approved in March 1989, renewed in November 2002 and renewed again in November 2016, and it runs until December 31, 2034.

The county Revenue Manual describes the levy as 1% on all sales tax eligible purchases in Indian River County up to a maximum of $5,000, added to items that already carry the 6% state sales tax, under section 212.055(2) of the Florida Statutes (county Revenue Manual, p. 62). Shoppers pay it on taxable purchases in Sebastian, Vero Beach, Fellsmere and every other part of the county. Vendors send it to the state with their monthly sales tax, and the state remits the surtax to the Indian River County Clerk of Court, who deposits it.

The original tax was approved for fifteen years. The county's capital program summary says the first 15 years expired May 31, 2004, after a 2002 referendum had already extended the tax to December 31, 2019 (county budget book, p. 310). The Fund 315 page records the November 2002 vote, the 2016 Presidential Election extension of another 15 years, and the new end date of December 31, 2034 (county budget book, p. 262). Its use is narrow: under the same summary, the funds may only be used for infrastructure and capital equipment.

The county's own Fund 315 budgets $28,574,000 of one-cent sales tax for fiscal 2025/26, and the state's estimate for 2026-27 gives the county about 74% of the countywide total, with Sebastian the largest city share at about 13%.

Collections have climbed slowly. Fund 315 recorded $27,193,547 in fiscal 2022/23 and $28,074,542 in 2023/24, with $27,820,000 budgeted for 2024/25 (county budget book, p. 262). The Indian River County board's portion is deposited in that fund, while each city receives its own distribution.

The Florida Office of Economic and Demographic Research publishes the estimated split. For local fiscal year 2026-27, it estimates the countywide total at $37,953,015 (EDR estimate, countywide total), of which the Indian River County board receives 74.078802 percent, or $28,115,139 (EDR estimate, county row). Sebastian's 13.084429 percent comes to $4,965,936 (EDR estimate, Sebastian row), and Vero Beach's 8.032244 percent to $3,048,479 (EDR estimate, Vero Beach row).

The tax paid for the county courthouse, the County Administration Buildings, Fire Station 11 on Orchid Island, the 800 MHz emergency communications system and expansions of the Main and North County libraries, among other projects.

The Fund 315 statement of function lists the completed work in one paragraph (county budget book, p. 262). Beyond the buildings above, it names numerous county roads, the new Health Department Building, several parks, right-of-way purchases for Kings Highway, partial funding of the PEP Reef, the North County Recreation Complex, the Fleet Management facility, beach restoration, Fire and EMS stations, an expansion of the Indian River County Jail and the Intergenerational Facility.

The 2016 renewal came with a lagoon pledge. The Board approved putting 20% of the renewed tax into stormwater projects that would help restore the Indian River Lagoon for the first five years of the renewal, according to the same budget page (county budget book, p. 262). The county says the projects chosen are ones that would otherwise have needed tax dollars, and that operating costs after completion move to departments in the taxing funds.

The fiscal 2025/26 budget for Optional Sales Tax Fund 315 totals $53,870,236, led by $17,112,951 of Sheriff capital, $11,079,000 of road projects and $7,747,719 for fire services.

The line items show where the money lands on the ground (county budget book, p. 263). Parks capital takes $6,654,496, Animal Services capital $3,468,500, the Medical Examiner $2,500,000, Facilities Management $1,737,500, the North County Library $770,000 and the North County Aquatic Center $400,000. The fund's budget also counts $22,460,371 of non-operating sources next to the year's $28,574,000 of tax revenue, which is how planned spending can exceed one year of collections (county budget book, p. 262).

The capital program puts the tax's role in plain terms. In fiscal 2025/2026, Optional Sales Tax revenue will provide over $46.5 million for CIP projects, and the county states that without it those projects would need debt or ad valorem proceeds (county budget book, p. 310). The budget's list of current and future uses names new courtroom facilities, stormwater projects, road projects and replacement vehicles for the Sheriff's Office (county budget book, p. 262).

Transportation is the largest category in the county's five-year capital program at $110.5 million, and it includes the 66th Avenue widening from 4th Street in Vero Beach to the Sebastian city limits.

Transportation projects totaling $110.5 million are scheduled over five years, funded by traffic impact fees, optional sales tax, gas taxes, developer contributions and grants (county budget book, p. 309). The section of 66th Avenue from 49th to 85th Street is expected to take several years at a cost of over $50 million, with FDOT funding $26.7 million. The same page lists $10.7 million of Conservation Lands projects, with Optional Sales Tax among the sources.

The county's Long Range Financial Plan shows how fast the fund is being drawn down. It starts fiscal 2025/26 with an unaudited unassigned balance of $113,655,704 and plans $52,254,129 of optional sales tax spending that year, including $16,599,562 for law enforcement and corrections and $739,625 for stormwater (county budget book, p. 320). Revenue is projected to grow 2.0% a year, reaching $29,382,946 in fiscal 2029/30.

The plan tapers after the current year. Planned Fund 315 spending falls to $36,907,070 in fiscal 2026/27, $21,785,420 in 2027/28 and $21,442,570 in 2028/29, and the fifth year shows no projects because the Capital Improvement Plan had not yet been updated; the county scheduled that plan for approval in February 2026 (county budget book, p. 320). In 2025/26 alone, road projects take $11,716,630, emergency services $10,879,732, recreation and open spaces $6,937,436 and facilities $5,060,975.

Newer numbers are on the way. The county held its final hearing on the fiscal 2026/27 budget on September 16, 2026, but as of October 12, 2026 the latest budget book posted by the Indian River County Office of Management and Budget is the 2025-26 edition (county Management and Budget page). Last verified: October 12, 2026, on the Indian River County Management and Budget website.

Sebastian moves its share of the one-cent tax into capital, transportation and stormwater funds, budgeting $1,998,550 for Capital Projects Fund 310 and $2,139,013 for the Transportation Improvement Fund in fiscal 2026/27.

The city's draft budget, dated September 8, 2026, also sends $366,000 to Capital Projects Fund 320 and $276,200 to the Stormwater Improvement Fund (Sebastian draft budget, p. 107). City capital request forms name the tax as the funding source for specific purchases: the Sebastian Police Department's replacement of five vehicles in fiscal 2026/27 at $407,495 (Sebastian CIP form, p. 162), and the city's $479,224 match for federal SS4A sidewalk extensions on Schumann Drive and George Street (Sebastian CIP form, p. 168). The city's overall budget page covers its full capital totals.