Hillsborough County residents are receiving long-awaited refund checks from a defunct transportation sales tax, but confusion reigns as many mistake the payments for junk mail or potential scams.
The checks, which began going out on April 22, are part of a settlement following the Florida Supreme Court’s 2021 decision that struck down a one-cent transportation sales tax approved by voters in 2018. The tax collected approximately $589 million before being ruled unconstitutional.
“I had a lot of my clients and constituents asking, ‘Is this a scam?'” said Temple Terrace City Council Member Gil Schisler. The postcards announcing the refund program “looked weird” and resembled suspicious offers, causing many residents to dismiss them immediately.
County officials have warned residents not to mistake envelopes from a P.O. box in Richmond, Virginia for junk mail, as they could contain legitimate refund checks. Hillsborough Commissioner Joshua Wostal acknowledged the confusion, saying the refunds “look fake” but assured residents “it is the legitimate business and that is your money.”
The refund amounts have left some residents puzzled. While applicants were told they could receive up to $100 if they lived in Hillsborough County between January 2019 and March 2021, many are receiving different sums. Dayna Lazarus, a nine-year resident, received just $58.64 despite believing she reported living in the county for the entire eligible period.
Sydney Gustafson, spokesperson for BrownGreer, the Richmond-based settlement administrator handling the refunds, said those who received less than $100 may not have reported living in Hillsborough County for the entire time the sales tax was in effect. According to the settlement website, fewer than 400,000 people registered to claim a refund, though more than 1.4 million lived in Hillsborough during the tax period.
The settlement funds are being divided three ways. About $256 million will fund Hillsborough County road repaving projects, with strict limitations requiring the money be used solely for repaving rather than new construction. Another $171 million was allocated for legal fees and tax refunds, with attorneys taking up to $25 million. The final $162 million funded a county sales tax holiday that began in January and continues through May 31.
Some residents view the refunds as small consolation for what was lost. Amanda Brown, a Northeast Seminole Heights resident, plans to donate her $100 check to the Hillsborough Area Regional Transit Authority, which faces a funding crisis and has already cut services to many neighborhoods.
“Even if I did get $100, I still would have rather had a functioning public transit system,” Lazarus said, expressing disappointment over the lost opportunity to improve local transportation.
Though nearly half of the funds raised through the original transportation tax were earmarked for transit improvements, Hillsborough’s bus agency won’t receive any money from the settlement. Transit officials warn the agency won’t be able to maintain current service levels beyond 2028 without additional revenue.
For those who submitted itemized claims with receipts for major purchases, the wait continues. Ranbir Robbins-Almari, a 26-year-old Riverview resident, spent weeks gathering receipts for cars, televisions, and other big-ticket items, hoping for thousands in refunds, but has yet to receive payment.
BrownGreer’s website indicates some claims are still under review. The deadline to apply was December 31, 2024, and payments are expected to continue going out in batches over the coming weeks.
Meanwhile, the county’s temporary sales tax holiday—another component of the settlement—has received little publicity. Some residents report still being charged the higher rate at certain businesses, potentially due to merchants failing to update their systems.
“It sounds like a great soundbite, but businesses have to reprogram everything,” said James Sutton, a sales tax attorney at Tampa firm Moffa, Sutton, & Donnini. “Most customers don’t even know about them, but sometimes businesses use them as an extra sales tactic.”