Tampa Bay area residents and visitors may be eligible for a refund of the transportation sales surtax paid in Hillsborough County, Florida, between January 1, 2019, and March 15, 2021.

In 2018, voters in Hillsborough County approved a one percent transportation sales surtax. Between January 1, 2019, and March 15, 2021, the Florida Department of Revenue collected about $569 million from this transportation surtax in Hillsborough County. However, in 2021, the Florida Supreme Court ruled that the surtax was unconstitutional. 

Anyone who paid sales surtax on transactions in Hillsborough County, Florida, between January 1, 2019, and March 15, 2021, may be eligible for a refund, provided they have not already filed a refund application with the Florida Department of Revenue. This one percent surtax was imposed on sales, use, services, rentals, admissions, and other transactions. For example, it was imposed on retail purchases, car and boat purchases, admission tickets to sporting events and attractions, hotel and other short-term stays, docking fees, and commercial rent payments. A complete list of transactions subject to the surtax can be found HERE. 

Important Dates:

• Claim Submission Deadline: December 31, 2024
• Exclusion Request Deadline: October 25, 2024
• Objection Deadline: October 25, 2024
• Fairness Hearing: November 7, 2024, at 2:00 PM ET

Legal Rights and Options:

1. Submit a Claim:
   • To receive a refund, a claim must be submitted by December 31, 2024.
2. Exclude Yourself:
   • Affected taxpayers who choose to exclude them will not receive a payment but will retain the right to pursue their own lawsuit regarding these claims. Note that the statute of limitations for separate claims may have expired under Florida law. Requests for exclusion must be written and postmarked by October 25, 2024.
3. Object to the Settlement:
   • If you disagree with the Settlement, you can object by sending a written statement to the Court, with copies to Class Counsel and Defendants’ Counsel. Objections must be postmarked by October 25, 2024.
4. Attend the Hearing:
   • You may attend the Fairness Hearing to speak about the settlement’s fairness. The hearing is scheduled for November 7, 2024, at 2:00 PM ET. This is an opportunity to present your views if you’ve filed an objection.
5. Do Nothing:
   • If you do nothing, you will not receive a payment and will give up your right to sue the Defendants about the claims in this lawsuit.

The Settlement will provide the following benefits to class members if the Court grants final approval:

1. Tax Refund Process (Common Benefit Fund): Approximately $171 million will be used to pay refunds to Class Members.
2. Sales Surtax Holiday: Approximately $161 million (which includes approximately $19 million in interest earned on the collected surtax) will be refunded through a temporary sales surtax holiday in Hillsborough County. The sales surtax holiday will continue until these funds are exhausted, reducing the amount of sales tax in Hillsborough County during this time.
3. Transportation Project Funding: Approximately $256 million will be used for transportation projects in Hillsborough County.

The Common Benefit Fund will also pay for the cost of notice and administration, payment of up to $50,000 to the Class Representative, and attorneys’ fees and expenses.

Refund amounts will depend on the total amount of the sales surtax paid from January 1, 2019, to March 15, 2021. Resident and non-resident Class Members who can verify taxable expenditures with receipts or other documentation will receive compensation equal to the amount of their surtax payments. Alternatively, if you lived in Hillsborough County anytime during 2019 to March 15, 2021, and either cannot or do not wish to provide proof of taxable purchases, you can claim a standard award of up to $100 if you can establish your residency for some or all of the time the surtax was imposed. Award amounts will be reduced in proportion to the length of your residency from January 1, 2019, to March 15, 2021. The Settlement Administrator will try to verify residency without requiring taxpayers to submit proof, but they may have to submit documentary evidence in some circumstances.

Payment amounts will be adjusted to ensure that all eligible Class Members receive a payment, as follows: If the total value of all approved claims is greater than the amount of money available to pay claims (after costs and fees have been deducted), eligible Class Members’ payments will be reduced proportionally. Additionally, if any money remains in the Common Benefit Fund after all claims and expenses have been paid, the leftover money will be used to extend the temporary sales surtax holiday.