Why I'm Opposed

The Taxation and Budget Reform Committee, an unelected commission reviewing Florida's finances, now wants to institute a "tax swap" - lowering one tax in favor of raising countless others.

In the end, this "swap" would impose the largest tax increase in Florida history. And still, even after eliminating tax breaks for skyboxes and ostrich feed, education will be billions short - leading to new taxes on cars, water and utility bills, and even new taxes on everything government buys.

In other words, they want us to tax...taxes. I believe that you don't cut taxes by creating new ones, and that more taxation is the last thing we need.

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Protect Florida's Future'

"The TBRC plan will force Floridians to pay almost $4 billion in new taxes, the largest tax increase in the history of our state."
--Senator Mike Haridopolos

Mandates $11 billion in spending

Provides only $7.4 billion in tax relief after Uncle Sam

A $3.6 billion dollar tax increase required to hold education harmless

Why jepordize our education system and create an even MORE uncertain business climate?

Would you grow your business in Florida or move a business to Florida if you did not know what the tax rate would be in 2010?

Even if this passes, tax payers would not see property tax relief until the fall of 2010 - two and a half years from now.

This would be the largest tax increase in the history of Florida. Which taxes will be increased to raise the $11 billion required? What NEW taxes will be required?

Read below and find out what Florida Tax Watch is saying about the Amendment.

Amendment 5 (CP 02) - Property Tax Swap
If approved by the voters this November, this will mandate the elimination of Required Local Effort (RLE) property taxes in 2010-11 and the replacement of the revenue from other sources. The proposal also creates a much needed 5 percent assessment cap for non-homestead properties.

Replacing RLE will cost at least $9 billion, but because the amendment requires that the entire amount of funding distributed through the state's education funding formula be "held harmless," the legislature will have to find as much as $11 billion.

While the elimination of RLE will provide an average property tax cut of approximately 25 percent, this proposal does raise significant concerns. The biggest question is: "From where will the money come?"

The amendment offers some options for legislators, but does not mandate any source. A sales tax increase of up to 1 percent (one penny) is a sure bet, but that will only raise $3.9 billion. Another option is to repeal sales tax exemptions. Even if all available exemptions are repealed (very unlikely), $3 billion to $4 billion more will need to be found.

Moreover, repealing exemptions could result in the state losing valuable economic development tools that better enable Florida's businesses to compete successfully in an increasingly global economy.

The need for more revenue raises the specter or taxing services, something even most Commissioners oppose. The opposition of the business community is widespread and strong.

Even if the Legislature employs other, yet unspecified options, it is unlikely that a revenue package could be put together that has a high degree of reliability, let alone certainty, that it would raise the required revenue, especially in early years. This could put school funding, and the entire budget, at risk. Passed 18-7.

For more information on CP 2, see the Florida TaxWatch report Analysis of the Constitutional Property Tax Proposals of the Florida Taxation and Budget Reform Commission, Florida TaxWatch Briefing, March 2008: Available at www.FloridaTaxWatch.org/research.