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Property tax reform debate will likely morph into state tax reform
2/27/2007
by Jack Hebert, Fourth Dist. AAF Lobbyist
Wednesday, February 21, 2006
Tallahassee – With a special session on property insurance reform now under their belt, state lawmakers have moved their focus to another problem high on the list of concerns of Florida citizens, including Florida’s new Governor Charlie Crist: property tax reform. However, in recent days it is becoming more apparent that any proposed reforms may not be limited to property taxes, most likely transforming into a comprehensive review, and possible upending, of Florida government’s tax structure. Such a move could have a dramatic impact on many of the sales tax exemptions currently in place which serve the state’s advertising, printing, and film and entertainment industries.
Following yesterday’s conclusion of a Property Tax Reform Summit held by the Florida House, it is rumored that as early as today, House leaders may likely unveil a bold reform plan suggesting an increase in the state sales tax of and additional two or three cents coupled with a dramatic reduction or elimination of real property taxes on homesteaded properties. Questioned on the concept during yesterday’s daily press availability, Governor Crist said he remained “open minded” on a sales tax increase, reaffirming his belief that property taxes in Florida have grown both too high and too unfair.
Meanwhile, Crist’s recently-created Taxation and Budget Reform Commission is in the middle of conducting a series of ten statewide public hearings dealing with the property tax issue. Of further concern is that one of the commissioners appointed by Crist is John McKay a former state senate president and co-architect of the proposed “FAIR” constitutional amendment calling for a systematic review of all state sales tax exemptions. The Florida Supreme Court formerly rejected the group’s proposal, but their most recent attempt to resurrect the issue and force the issue on the 2006 ballot failed due to a lack of sufficient signatures. McKay also sought, but largely failed, to put in place various mechanisms to review and/or repeal exemptions during his leadership tenure.
With the property tax issue high on the minds of Florida’s citizens there’s no question it will likewise continue to be high on the Legislature’s priority list when it convenes in less than two weeks for its annual lawmaking session. Following this week’s interim committee meetings, legislators will break for a week before convening for the 60-day session on March 6.
What once seemed like a relatively quiet season for our industry is no more. Please be sure to stay alert and watch for more frequent updates in the coming days from your Fourth District AAF legislative team, or contact Fourth District AAF lobbyist Jack Hebert at jack@themallardgroup.com with your questions.
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