Clay County Board to vote on utility tax increase starting January

The Clay County Board of County Commissioners held a workshop on July 8, 2025, to discuss a proposed increase in the utility service tax. The meeting focused on the implications of a potential 4% increase, which, if approved, would take effect in January 2026. This increase is intended to help fund the county's budget, with officials noting that only 75% of the projected revenue would be collected in the first year due to the timing of the implementation.

During the discussion, commissioners addressed questions regarding the rationale for choosing a utility tax over property tax. Officials explained that utility taxes are based on electricity usage, impacting all residents, while property taxes are levied on property owners, which can create disparities due to exemptions and varying property values. One commissioner highlighted that approximately 5,000 properties in Clay County are not taxed at all, suggesting that a property tax increase would disproportionately affect those who already pay taxes.

The conversation also touched on the differences between unincorporated areas of Clay County and its municipalities. Three of the four municipalities already have a utility tax in place, with Green Cove Springs being an exception due to its own utility services. The county's ability to discuss and potentially implement a utility tax stems from its status as a charter county, which allows it to levy such taxes similarly to municipalities.

Commissioners noted that many charter counties in Florida impose utility taxes, and despite the proposed increase, Clay County would still rank relatively low in overall tax burden compared to other counties in the state. The meeting concluded with a recognition that while low taxes have attracted many residents to the area, adjustments may be necessary to maintain essential services and infrastructure. The board is expected to vote on the proposed tax increase later in the day.