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Voters To Have Final Say On Adding Penny To State Sales Tax

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By JEROME R. STOCKFISCH

The Tampa Tribune

Published: May 4, 2008

TALLAHASSEE - Florida voters will decide this fall whether to tack another penny onto the state sales tax and whether to resurrect one of former Gov. Jeb Bush's pet education projects. They will also weigh in on various tax breaks.

It wasn't the Florida Legislature that offered up the proposed revisions to the state constitution. As lawmakers were gathered for their annual 60-day session, an obscure but powerful state panel that meets once every 20 years wrapped up its yearlong mission to review the state's financial infrastructure.

The Taxation and Budget Reform Commission has forwarded seven proposals to the secretary of state for inclusion on the Nov. 4 ballot. Most deal with arcane tax breaks benefiting such entities as working waterfronts and conservation land. But the panel also captured the attention of the Capitol with a sweeping proposal to eliminate the portion of local property taxes that go to schools in exchange for a 1-cent increase in the sales tax.

Lawmakers at various times had proposed such a tax swap but opted for a much tamer plan last year when they took on the issue of property tax reform. Amendment 1, which passed in January, doubled the $25,000 homestead exemption to $50,000 and allowed homeowners who move to transfer their "Save Our Homes" valuation benefit to the new home.

The plan is expected to save the average household about $240.

Now, voters will consider paying more at the cash register in exchange for slashing their property tax bills by anywhere from 25 percent to 40 percent, depending on the school district.

The state sales tax is currently 6 cents, and Tampa Bay area counties all have tacked on another penny for local projects. So here the increase would take the sales tax to 8 cents on the dollar.

The Taxation and Budget Reform Commission estimated that eliminating local school taxes would strip about $8 billion from school budgets statewide this year. The increased sales tax would yield about $4 billion for education.

The commission's proposal charges the Legislature with coming up with the missing money through a combination of closing sales-tax exemptions, spending reductions and "other revenues."

That led to the unusual move by one state lawmaker, Sen. Mike Haridopolos, R-Indialantic, to head down the street from the Capitol to another state office building where the commission was meeting to confront its members on their plan.

"I have to admit, a lot of us were very surprised at the direction they ultimately went," Haridopolos said.

He was unsuccessful in arguing before the commission that the money will be difficult if not impossible for the Legislature to replace. He called the plan the largest tax increase in state history.

"We know better because we work with this budget every single year," Haridopolos said. "That 'swap' is far from reality. I think a lot of people are going to be leaving here and letting the voters back home know that the numbers don't add up."

Rep. Dan Gelber from Miami Beach, who was the House Democratic leader and a nonvoting member of the taxation and budget commission, called the plan "wrongheaded."

But by a one-vote margin, the commission eventually passed the issue onto the November ballot.

Reporter Jerome R. Stockfisch can be reached at jstockfisch@tampatrib.com or (813) 259-8402.

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