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On June 30, 2025, Governor Ron DeSantis signed Florida House Bill 7031 ("HB 7031 "), eliminating both the State Business Rent Tax and Discretionary Sales Surtaxes on commercial leases effective October 1, 2025. HB 7031 fully repeals Section 212.031, Florida Statutes, which imposes the sales tax on commercial lease rental payments, as of October 1, 2025. However, HB 7031 does not affect the sales tax on rental income from motor vehicle, boat or aircraft storage or on short-term residential rentals with a term of less than six months, which are imposed by Section 212.03, Florida Statutes. Accordingly, the County's Discretionary Sales Surtaxes on commercial lease rental payments will not be collected by FDOR and remitted to the County effective October 1, 2025, and will not be available to pay debt service on any Non -Ad Valorem Revenue Obligations thereafter. The County does not expect the financial impacts of HB 7031 to impact its ability to pay debt service on the Series 2025 Bonds. Fuel Taxes The County receives proceeds of three different fuel taxes, all of which are generally described below. Under current Florida law, proceeds of fuel taxes may only be used for various transportation -related expenditures as provided in the specific statutes and law governing such taxes. Accordingly, the County may not use proceeds of the fuel taxes described below to pay debt service on the Series 2025 Bonds. However, such fuel tax proceeds may be available to pay debt service on certain other Non -Ad Valorem Revenue obligations that may subsequently be issued and may be used to pay for transportation related expenses of the County. Six -Cent Local Option Fuel Tax. Section 336.025(1)(a), Florida Statutes, authorizes counties to impose a local option fuel tax of up to six cents upon every gallon of motor fuel and diesel fuel sold in the county and taxed under Chapter 206, Florida Statutes,. upon approval of a majority vote of the governing body of a county or by voter approval in a county -wide referendum. Counties may pledge any portion of the local option fuel tax to the repayment of bonds. Pursuant to Section 336.025(1)(a), Florida Statutes, Chapter 206, Florida Statutes, and Ordinance No. 92-26, adopted by the County on July 14, 1992 (the "Six -Cent Local Option Fuel Tax Ordinance"), the County levies a county -wide six cents per gallon local option fuel tax (the "Indian River County Six -Cent Fuel Tax"), upon every gallon of motor fuel and diesel fuel sold in the County. The Indian River County Six -Cent Fuel Tax is collected by merchants and paid to the FDOR. The FDOR deposits the proceeds of the tax into the State's Local Option Fuel Tax Trust Fund. The FDOR is authorized to deduct certain administrative costs incurred in collecting, administering, enforcing and distributing the proceeds of such tax to the counties in an amount not to exceed 2% of total collections from the Local Option Fuel Tax Trust Fund. 24