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1. #Florida temporary fuel permit how to#
2. #Florida temporary fuel permit drivers#
3. #Florida temporary fuel permit driver#
4. #Florida temporary fuel permit license#

Therefore, while the gas tax may have some role in nudging people toward more fuel-efficient vehicles, consolidating trips, or switching to other modes of transportation, its primary role is clearly as a user fee.Īt least as long as it doesn’t have a rate of zero cents per gallon.īut Florida’s startling proposal of a lengthy gas tax holiday is merely one of the starker examples of states’ broader challenges in figuring out what to do with overflowing coffers.

#Florida temporary fuel permit license#

In practice, however, nearly all motor fuel taxes fall short of fully covering road expenditures, and that is true of Florida, where motor fuel taxes, tolls, and license fees combine to generate 79 percent of the amount needed to fund the state’s highway spending.

#Florida temporary fuel permit drivers#

Theoretically the gas tax has the potential to do both, as it could be envisaged as (1) covering the cost of using the roads (user fee) as well as (2) putting a price on contributions to road congestion and (3) having drivers bear the social cost of emissions and other environmental harms caused by driving (internalizing externalities).

Well-designed excise taxes either create a user fee system or internalize some meaningful externality, or both. Most state gas taxes are already set too low to fully cover state infrastructure costs, but zeroing out the gas tax is a massive subsidy for drivers, shifting the cost of road construction and maintenance into tax revenue streams that take no account of taxpayers’ use of state infrastructure. Students of public finance, however, tend not to share this popular enthusiasm for lower-or no-gas taxes because they rightly see the motor fuel tax as one of the better examples of a user-pays excise tax, where the amount one pays is at least roughly commensurate with government benefits received.

#Florida temporary fuel permit driver#

It’s literally in lights everywhere they turn, and with the average driver purchasing over 650 gallons of motor fuel each year, high prices at the pump take their toll. Political candidates have been deemed out of touch for not knowing the price of a gallon of milk, but even consumers who purchase milk regularly may not notice every price fluctuation, whereas any driver can tell you how high gas prices have soared in their area. Whatever policy rationales stand behind the proposal, there’s another reason why both candidates are aligning themselves with the idea: reducing gas tax burdens is good politics. In 2022, Florida voters may well be choosing between two gubernatorial candidates who believe the appropriate gas tax rate to be zero-and indeed, it may already be the new rate by then. Charlie Crist (D), who previously governed the state as a Republican-has criticized the proposed $1 billion tax cut, his critique is that it should have been taken up in special session this year. While DeSantis’s most prominent potential Democratic opponent-former Gov. Lowering taxes, even temporarily, puts more money in people’s pockets, which has economic benefits (and is desirable in its own right), but it’s not pro-growth in the way that permanent rate reductions or meaningful structural reform is. It’s a good problem to have, but also a vexing one, particularly if state officials harbor doubts about the permanence of new revenue levels. Citing rising prices at the pump and the state’s substantial revenue surplus, the governor is calling upon the legislature to take the state’s gas tax from 26.5 cents a gallon to zero, and to keep it at zero as long as the additional revenues are there to sustain it.įlorida has a “problem” common to many states right now: skyrocketing tax revenues, and uncertainty about how best to return some of the surplus to taxpayers.

#Florida temporary fuel permit how to#

Florida Governor Ron DeSantis (R) knows how to make a splash, and his proposal to suspend the state’s gas tax-temporarily, but without a specific end date-will only burnish that reputation.