Okaloosa County BOCC — September 3, 2013 — FAC Finance, Tax, Administration — reading text

2013 FAC Policy Conference Finance, Tax and Administration Policy Committee Meeting Thursday, September 19th, 2013 8:00 a.m. to 10:00 a.m. Meeting Room: Regency East (DE) Co-Chairs Co-Vice Chairs Chip LaMarca, Broward County Doug Conkey, Clay County Nora Patterson, Sarasota County John Horan, Seminole County AGENDA 8:00 a.m. INTRODUCTIONS & OPENING REMARKS 8:10 a.m. POLICY DISCUSSION - ADMINISTRATION • Lisa Hurley, FAC Staff 8:45 a.m. POLICY DISCUSSION – FINANCE & TAX • Davin Suggs, FAC Staff 9:45 a.m. OTHER ISSUES 10:00 a.m. CLOSING REMARKS/ADJOURNMENT Marriott West Palm Beach ♦ Palm Beach County Updated 9/9/13  Finance, Tax & Administration Policy Committee 2013-14 Policy Statements Finance Davin J. Suggs, Senior Legislative Advocate Email: dsuggs@fl-counties.com Phone: 850-922-4300 or Fax: 850-488-7501 CONSENT ITEMS FINANCE & TAX POLICY Communications Services Tax: SUPPORT amending and/or revising current law in a manner that is: 1) revenue neutral; 2) simplifies administration and collection of the current tax; 3) provides for a broad and equitable tax base; 4) provides for enhanced stability and reliability as an important revenue source for local government; and 5) provides the opportunity for market-based growth. Local Business Tax: SUPPORT the authorization of local governments to modify local ordinances in a manner that results in a more simplified, efficient and equitable tax system that benefits business and local communities. OPPOSE legislation that would provide for the elimination of the Local Business Tax. E-911 Fee: SUPPORT collection of E-911 fee on prepaid mobile telecommunications for use in support of local government emergency communications operations. Internet Sales Tax/“Main Street” Fairness Act: SUPPORT legislation that promotes an equitable competitive environment between “Brick and Mortar” businesses and remote business establishments conducting business in Florida. Local Discretionary Revenue Flexibility: SUPPORT modifications to existing laws governing local discretionary revenue sources to provide greater flexibility and more efficient administration and management. APPROPRIATIONS Specific County Based Appropriations: SUPPORT maintaining current state appropriations critical to the delivery of public services at the county government level as it relates to currently funded county based appropriations in the SFY 2014-2015 budget. SUPPORT maintenance of existing appropriations currently funded in support of fiscally constrained counties. 1 NEW AND REVISED ITEMS FINANCE & TAX POLICY Sales Tax Exemption on Commercial Leases: OPPOSE legislation that would exempt state sales tax and local option sales tax on commercial leases. Explanation/Update: During the 2013 Legislative Session SB 656 was filed with the intent to provide for the incremental reduction (over a five year period) of sales tax imposed on the rental or license fees charged for the use of commercial real property.  Currently, commercial rentals are taxed at 6% at the state level, plus the local discretionary surtax. The bill would have phased out the sales and use tax on commercial rentals by reducing the tax rate by 1% per year and completely repealing both state and local sales and use taxes in the year 2019.  The proposal was identified by the Florida Association of Realtors as its primary legislative objective for 2013. According to the Florida Revenue Estimating Conference, this proposal would have a negative recurring fiscal impact to local governments (mostly cities and counties) of $386.2M annually (by 2019). The bill(s) failed to be passed out of its committees of reference. It is anticipated that this issue will be carried forward to the 2014 legislative session. ECONOMIC DEVELOPMENT Film/Television Entertainment Production Tax Incentives: SUPPORT legislation that would enhance incentives to foster a more competitive environment for attracting film and television entertainment production in the State of Florida. Explanation/Update: The Office of Film and Entertainment currently administers the Entertainment Industry Financial Incentive Program, which awards transferrable tax credits for certain expenditures associated with film, television, and digital media productions. Generally, the credits are 20 percent of qualified expenditures, with additional amounts available in certain circumstances. Sections 288.1254 and 288.1258, F.S., govern the administration of this incentive program. Several counties have expressed interests in exploring strategies to enhance Florida’s incentive program to be more competitive on a national and international basis. 2 BUDGET & FINANCE ADMINISTRATION Chart of Accounts Consolidation: SUPPORT legislation that would remove the requirement that all governmental entities in the State of Florida utilize the same Chart of Accounts (Accounting System). Explanation/Update: The Legislature passed SB 1292 during the 2011 Session, requiring the Chief Financial Officer to develop a Uniform Chart of Accounts to be used by all governmental entities for the reporting of assets, liabilities, equities, revenues and expenditures. Since the passage of this legislation, the CFO’s office has developed draft recommendations that may prove to be costly and burdensome in its implementation for local governments. Recently, the Florida Government Finance Officers Association has created a task force to address the situation and developed a unified local government strategy in providing a remedy. Value Adjustment Boards: OPPOSE legislation that would harm the ability of Value Adjustment Boards in fulfilling its role as intended by the State Constitution. Explanation / Update: During the 2013 Legislative Session, a Proposed Committee Substitute Bill for HB 1381 was filed with the intent to provide for several revisions to current laws governing the composition and operation of Value Adjustment Boards. Of primary concern to counties, the bill would have:  Amended the current composition of VABs to include three citizen members and only two elected officials.  One of the citizen members would be appointed by the Clerk of Courts – Secretary to the VAB.  Amended provisions regarding the role and duty of the VAB Attorney The bill(s) failed to be passed out of committees of reference. It is anticipated that this issue will be carried forward to the 2014 legislative session. Lisa Hurley, Legislative Advocate Administration lhurley@fl-counties.com Phone: 850-922-4300 or Fax: 850-488-7501 CONSENT ITEMS Collective Bargaining: SUPPORT legislation clarifying that constitutional officers can resolve impasse issues at the discretion of the constitutional officer. Elections: SUPPORT full state funding of all expenditures by supervisors of elections to comply with the requirements of the federal Help America Vote Act. 3 Explanation/Update: In 2013, passage of HB 7013 extended early voting days/hours from 8 days minimum up to 14 days at the discretion of the Supervisor of Elections and increased the hours from 96 to a maximum of 168 hours. The bill also expanded the authorized sites to include civic and convention centers, fairgrounds, stadiums, courthouses and commission buildings. Procurement: SUPPORT the non-publishing of detailed bid estimates by creating an exemption for county and municipality projects in statute. SUPPORT establishing an optional (alternative) process for state and local entities to consider cost in the award of professional services agreements pursuant to the Consultants’ Competitive Negotiation Act. Public Notice: SUPPORT legislation allowing local governments to comply with public notice and legal advertisement requirements by means other than the newspaper. Florida Retirement System (FRS): OPPOSE any FRS benefit changes that result in an increase in the FRS county and county employee contribution rates. SUPPORT requiring all legislation that potentially results in an increase in the FRS contribution rate to be analyzed and evaluated to determine the direct fiscal impact of proposed changes to all local and state government to be eligible for consideration. Explanation/Update: In 2013, HB7011/SB1392 sought to reform the FRS by either closing the Defined Benefit (pension) plan to new employees or changing the default of plan options from Defined Benefit (pension) to Defined Contribution (investment) plan. The Senate proposed the more conservative approach of changing the default, whereas the House sought to close the pension. The two chambers could not reach agreement and reform efforts died. It is expected that the issue will be taken up again in 2014. Also in 2013, SB1810 contained the annual employer contribution rate adjustments, which kept significant rate increases in place beginning July 1, 2013. Public Record and Open Meeting Exemptions for Economic Development: SUPPORT changes to s.286.0113 and s.288.075, F.S., that would allow the Board of County Commissioners to deliberate in private regarding an economic development proposal and would allow confidential information in the possession of an economic development agency to be provided to a member of the Board of County Commissioners without the possibility of such communication being considered a disclosure, which would terminate the confidential nature of the information. Information would be released before final decision is made, however. 4