Florida Today: Suit filed to stop tax swap amendment

Monday, July 07, 2008

BY BILL COTTERELL
FLORIDA TODAY

TALLAHASSEE—A coalition of business, education and agriculture organizations filed suit Thursday aimed to knock a “tax swap” constitutional amendment off of Florida’s November ballot.

But a high-ranking official of the Florida Association of Realtors, a big backer of Amendment 5, said it is not confusing for voters and should withstand court challenges. The amendment’s main sponsor on the Constitution Revision Commission said “special interests” want to torpedo property tax relief to protect their own tax exemptions.

The amendment would eliminate county property taxes for school support and require the Legislature to come up with replacement revenues from several sources, including added sales tax and eliminating sales-tax exemptions. The property tax cut would reduce the average bill statewide by 25 percent.

“This amendment is misleading and will be devastating to schools throughout Florida,” said Wayne Blanton, executive director of the Florida School Boards Association.

Barney Bishop, president and CEO of Associated Industries of Florida, said the amendment “jeopardizes the economic growth of our state” because companies considering a move to Florida would not know what goods or services might be taxed to make up lost county school revenues.

“This reckless venture sends a signal to the business community everywhere to avoid relocation or expansion of business operations in Florida,” said Bishop. “Amendment 5 is a blind leap into Florida’s future that would halt economic development, a leap we cannot afford in an already sour economy.”

To pass, the amendment would need a 60 percent public vote at the polls Nov. 4. State Sen. Mike Haridopolos, R-Indialantic, chairman of the Senates Tax and Finance Committee, organized the coalition against the proposal.

Opponents maintain that lawmakers would have to come up with unprecedented tax increases and major state spending cuts, to reimburse counties for lost school taxes.

“It’s sort of sad that special interests want to deny Floridians a cut in property taxes,” said former Senate President John McKay, who sponsored the amendment as a member of the Taxations and Budget Revision Commission. “That’s what this is—special interests trying to preserve their own advantages at the expense of the property taxpayer.”