The one-cent Local Option Sales Tax is not a new tax. It was first approved by voters in 1992. Since then, the penny has been renewed three times by voters, in 1997, 2006 and again in 2014.

L.O.S.T. may only be used in the way it was approved by voters. Ongoing governmental operations, such as sanitation or park maintenance, cannot be funded. The monies also cannot be used to pay salaries.

Groceries, medicine, mortgage payments, rent (residential), personal services (haircuts, fitness), professional services (legal, accounting, consulting), residential electricity, natural gas, medical products and more are exempt.

The Escambia County Commissioners and the Pensacola City Council will present their approved lists of projects to the public before a vote is held to extend the tax.

Funds can only be used for specific projects approved by voters — by law they cannot be redirected for other purposes. Spending is also reviewed through public meetings, budgets, and reporting, so residents can track how the money is used.

And because the program expires every 10 years, voters have the final say on whether it continues—based on how well it’s delivered.

It is a pay-as-you-go tax paid by everyone, both residents and non-residents of Escambia county who purchase any non-exempt items. In fact, up to 28% of the tax is paid by people who live outside of Escambia County!

It is estimated that the penny will raise $420 million, of which $360 million goes to Escambia County and $60 million goes to the City of Pensacola.

The Local Option Sales Tax has a very defined and limited use including public safety facilities and equipment, transportation and drainage improvements, infrastructure, public facilities, recreation/natural resources, law enforcement/fire, jail/court facilities, capital equipment, community services and economic development projects, per Florida Statutes.

The penny has impacted every corner of Escambia County. From new roads and resurfacing, to sidewalk construction, flood-preventing drainage improvements, parks and recreation upgrades, equipment and facilities for law enforcement, emergency medical service, and fire departments.

The penny has made a difference in every part of Escambia County. Check out the Impact page of this website and you’ll see some of the important projects that your penny has funded in your neighborhood. You can find a complete map of all projects funded by the Local Option Sales Tax on the Project Map.

Both Escambia County and the City of Pensacola are faced with capital needs, such as drainage projects and replacing dilapidated public safety equipment, that cannot be met within the limited general fund budgets. Without the extra penny, many legitimate needs of local governments could not be met.