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Florence council adopts ordinance raising sales tax to fund roads, increases bed tax
Summary
The Town of Florence unanimously adopted Ordinance 780-26 on March 17, 2026, raising the transaction privilege (sales) tax from 2.0% to 3.5% and increasing the bed (hotel) tax from 2.0% to 5.0%, with a 1.0% dedication to transportation and 0.5% to the general fund, effective July 1, 2026.
The Town of Florence on Tuesday approved Ordinance 780-26 to raise the local transaction privilege tax from 2.0% to 3.5% and increase the bed (hotel) tax from 2.0% to 5.0%, a measure council said is intended to address a growing transportation and infrastructure funding shortfall.
Town staff told council that a combination of reduced state-shared revenues and sharply higher construction and materials costs has left the town facing mounting capital needs. "We have identified roughly a $43,000,000 gap in trying to pay for [road] projects even with our most optimistic assumptions," Vice Mayor Adam said during…
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