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Sales Tax Exemptions Trip Up State Council

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By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: March 17, 2009

TALLAHASSEE - Not ostrich feed. Not even stadium skyboxes.

Neither Republicans nor Democrats suggested repealing a single sales tax exemption at Monday's meeting of the state House Finance and Tax Council, which ended in a fury of partisan finger-pointing when chairwoman Ellyn Bogdanoff abruptly cut off discussion.

The agenda for the scheduled four-hour meeting listed just two items of business, one of which was "repeal of sales tax exemptions," of which there are hundreds nestled in Florida's tax code.

Total value of those exemptions: $12.3 billion, about half of which covers groceries, utilities and prescription drugs. Others range from used car trade-ins to charter fishing boats. But Monday's discussion about repealing exemptions never happened - which Bogdanoff, R-Fort Lauderdale, blamed on the minority party.

"I asked everybody by 12 o'clock on Friday to provide those that we wanted to debate for repeal," she said, stressing that Democrats have urged Republicans for years to repeal some exemptions. "None have been brought forward by the minority party. ...

"The state of Florida does not want partisan politics," she said. "But we have been told ... it's our job to fix it. And that would be the majority party, that it's our fiscal crisis. And it appears to me, in some respect, that they have abdicated their responsibility in participating in the process."

But as she acknowledged afterward, Republicans haven't proposed exemptions for repeal, either, reflecting just how eager both parties are to claim credit for anything resembling a tax increase.

Democrats on Bogdanoff's council said she set them up to propose tax increases that GOP members would vote down.

"What they wanted to do is put us on the spot," Rep. Perry Thurston, D-Fort Lauderdale, said after the meeting. "How many exemptions did they bring in today? That's the telltale sign."

No Democratic council member would suggest a tax exemption for elimination.

Bogdanoff said her GOP-led council is preparing a bill to address sales tax exemptions. She would not name exemptions the bill might repeal, nor say whether the bill will raise any money.

"It is not the charge of this council to fill a $3 billion budget hole," she said.

State revenue is a critical part of the discussion this legislative session, however. Even with a federal stimulus handout, Florida may have to come up with another $3 billion next fiscal year.

Trying to close that gap with budget cuts alone would probably cause "devastating reductions" to state services, said JD Alexander, R-Lake Wales, the Senate's budget chief.

House leaders remain more reluctant to boost state revenue. But on Monday, even House Speaker Larry Cretul said that the latest revenue predictions, released March 13, "take your breath away. ... With these new numbers, who knows what will happen?"

Reporter Catherine Dolinski can be reached at (850) 222-8382.

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