- April 23, 2024
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The Palm Coast City Council is looking at options for a tax for electric vehicles to help pay for city road maintenance.
The issue came up during an overview on the city’s budget and funding sources at a May 23 City Council workshop. Electric vehicles, unlike regular vehicles, do not pay a fuel tax. Fuel taxes help pay for road maintenance.
“It’s time that we say, ‘Hey, we’re paying this tax on our fuel. You guys aren’t paying anything,’” Vice Mayor Ed Danko said. “It’s not right.”
At a previous City Council workshop, the council directed staff to explore options for implementing such a tax. City staff will present that information at a June 13 workshop meeting.
Flagler County residents currently pay a fuel tax of six cents per gallon. The money is collected by the county and distributed to the municipalities based on population and an average of road miles, Financial Services Director Helena Alves said.
The city of Palm Coast receives almost 73% of the money, Alves said. That funding is restricted for transportation expenses only.
The city’s resurfacing program is severely underfunded. Stormwater and Engineering Director Carl Cote gave a presentation in April stating that the city will need to allocate $12.2 million for the program just to keep up with maintenance and increasing costs.
Mayor David Alfin said that implementing an electric vehicle tax may be relegated to Tallahassee, and not something the city can undertake. City Attorney Neysa Borkert was not at the May 23 workshop meeting to weigh in.
"We still need to account for the use of on our roads," Danko said. "Because we need every penny we could get it."
