Legislator proposes swapping sales-tax increase for property tax reductions

Wednesday, April 16, 2008

The News-Press

TALLAHASSEE—The chairman of the Senate’s tax-writing committee told a powerful state commission on taxation today that he will hold hearings Friday on its proposal to swap a sales-tax increase for property tax reductions.

Sen. Mike Haridopolos, R-Melbourne, bluntly told the Taxation and Budget Reform Commission its numbers don’t add up. The commission previously adopted a constitutional amendment that would end the state-required school property taxes at the local level, and direct the Legislature to raise the sales tax and repeal exemptions to make up the lost revenue.

Haridopolos, who chairs the Senate Finance and Tax Committee, was given three minutes to speak at this afternoon’s meeting of the TBRC. He earlier distributed a letter to the 25 members, saying he has not had any response to letters he sent on March 25 and April 2, asking for recommendations of how the Legislature could offset revenue lost by the swap.

“The numbers simply don’t add up,” he said. “The elimination of sales-tax exemptions will not make up the revenue.”

Haridopolos said it would cost about $4 billion to replace the property taxes. He said members of the TBRC have identified about $4.5 million in sales tax exemptions that might be repealed, such as the exemptions for ostrich feed, fill dirt, Super Bowl tickets and opera admissions.

“The $4.5 million identified so far represents one-one-thousandth of the money necessary for the so-called swap,” said Haridopolos.

He said that if Florida voters adopt the TBRC amendment on the ballot next November, it would force legislators to make “the largest tax increase in the history of the state” to fund the schools.

TBRC Chairman Allen Bense and members of the panel made no response to Haridopolos’ remarks. Bense has previously said his commission held numerous public hearings on the tax issues, all over the state.

Haridopolos said the Finance and Taxation Committee will hold public hearings on Friday to assess the impact of the proposed tax swap and consider what taxes future legislative sessions might have to hike to fully fund the schools from the state level.