Okaloosa County BOCC — 2013 meeting #1122 (date undetermined) — 2013-2014 Strategic Plan-Rev Sources — reading text

REVENUE SOURCE AUTHORIZED BY THE CONSTITUTION General Information The ability of local governments to raise revenue for governmental operations is narrowly constrained by the State Constitution. With the exception of the ad valorem tax and several constitutionally authorized State shared revenue programs, local governments are dependent on the Legislature for the authority to levy any other forms of taxation, thereby increasing the relative importance of the ad valorem tax. Ad Valorem Tax Increasing property values is the largest potential source of revenue to support growth in service demands for most local governments. Based on Final 2013 Taxable Value of $13,565,838,217 Board of County Commissioners Taxes paid by Taxpayer Millage Rate Increase County Taxes Increase $100,000 Value Increase 3.2899 $42,398,739 $328.99 3.3500 0.0601 $43,173,280 $774,542 $335.00 $6.01 3.5000 0.2101 $45,106,412 $2,707,673 $350.00 $21.01 4.0000 0.7101 $51,550,185 $9,151,447 $400.00 $71.01 4.5000 1.2101 $57,993,958 $15,595,220 $450.00 $121.01 Before exemptions and discounts. County Furnishing Municipal Services General law implements the constitutional provision authorizing a county furnishing municipal services to levy additional taxes within the limits fixed for municipal purposes via the establishment of municipal service taxing or benefit units. The distinction between a municipal service taxing unit (MSTU) and a municipal service benefit unit (MSBU) is that a MSTU is the correct terminology when the mechanism used to fund the county services is derived through taxes rather than service charges or special assessments (i.e., MSBU). The creation of a MSTU allows the county’s governing body to place the burden of ad valorem taxes upon property in a geographic area less than countywide to fund a particular municipal-type service or services. Florida Statutes prescribes that appropriation of no less than 95.0% of all receipts reasonably anticipated being received from all sources, thereby establishing an  10.3362 FY2012 County Aggregate Millage Comparisons Similar Size Counties 8.8084 8.5943 8.1357 7.9026 $12.000 7.5886 7.4702 7.4096 6.0953 Dollars per $1000 $10.000 4.1179 $8.000 3.6014 3.3744 $6.000 $4.000 $2.000 $0.000 Bay Clay Walton Okaloosa Osceola Hernando St Johns Santa Charlotte Escambia Alachua St Lucie Rosa almost 5.0% margin for error in revenue estimates, particularly in the area of ad valorem tax revenue. REVENUE SOURCES AUTHORIZED BY THE LEGISLATURE Local Discretionary Sales Surtaxes Sections 212.054-.055, Florida Statutes Eight different types of local discretionary sales surtaxes (also known as local option sales taxes) are currently authorized in law and represent potential revenue sources for county and municipal governments and school districts. The local discretionary sales surtaxes apply to all transactions subject to the state tax imposed on sales, use, services, rentals, admissions, and other authorized transactions authorized pursuant to chapter. 212, F.S., and communications services as defined for purposes of chapter. 202, F.S. The local discretionary sales surtax rate varies from county to county, depending on the particular levies authorized in that jurisdiction. Discretionary sales surtax must be collected when the transaction occurs in, or delivery is into, a county that imposes the surtax, and the sale is subject to state’s sales and use tax. Reporting Requirements: The governing body of any county or school board that levies the surtax shall notify the DOR within 10 days after the final adoption by ordinance or referendum of an imposition, termination, or rate change. The DOR must receive this notice no later than November 16th prior to the January 1st effective date. The notice must specify the rate as well as the time period during which the surtax will be in effect and must include a copy of the ordinance and such other information required by departmental rule. Failure to timely provide such notification to the DOR shall result in the delay of the effective date for a period of one year. Additionally, the governing body of any county or school board proposing to levy the surtax shall notify the DOR by October 1st if the referendum or consideration of the ordinance that would result in the imposition, termination, or rate change of a surtax is scheduled to occur on or after October 1st of that year. Failure to timely provide such notification to the DOR shall result in the delay of the effective date for a period of one year. Administrative Procedures: The administrative procedures relevant to local discretionary sales surtaxes are outlined in s. 212.054, F.S. The Department of Revenue (DOR) is charged with administering, collecting, and enforcing those local discretionary sales surtaxes. The governing body of any county levying a local discretionary sales surtax shall enact an ordinance levying the surtax in accordance with the procedures described in s. 125.66(2), F.S. No initial levy or rate increase or decrease shall take effect on a date other than January 1st, and no levy shall terminate on a day other than December 31st. Reporting Requirements: The governing body of any county or school board that levies the surtax shall notify the DOR within 10 days after the final adoption by ordinance or referendum of an imposition, termination, or rate change. The DOR must receive this notice no later than November 16th prior to the January 1st effective date. The notice must specify the rate as well as the time period during which the surtax will be in effect and must include a copy of the ordinance and such other information required by departmental rule. Failure to timely provide such notification to the DOR shall result in the delay of the effective date for a period of one year. LOCAL DISCRETIONARY SALES SURTAX  Revenue Estimates for the Local Fiscal Year Ending September 30, 2013 1% Tax Rate - Default Formula 1% Tax Rate - Interlocal Agreement Local Government Distribution Estimated Distribution Estimated Percentage Distribution Percentage Distribution OKALOOSA BOCC 66.856852 $ 21,159,995 Cinco Bayou 0.165938 $ 52,519 Crestview 9.279580 $ 2,936,959 Destin 5.323421 $ 1,684,847 Fort Walton Beach 8.441246 $ 2,671,629 Laurel Hill 0.227733 $ 72,077 Mary Esther 1.661111 $ 525,737 Niceville 5.545969 $ 1,755,283 Shalimar 0.311134 $ 98,473 Valparaiso 2.187015 $ 692,184 Countywide Total 100.000000 $ 31,649,702 1 to 5 Cents Local Option Fuel Tax Sections 206.41(1)(e) and 336.025, Florida Statutes County governments are authorized to levy a tax of 1 to 5 cents upon every net gallon of motor fuel sold within a county. Diesel fuel is not subject to this tax. This tax shall be levied by an ordinance adopted by a majority plus one vote of the membership of the governing body or voter approval in a countywide referendum. The tax proceeds may be used for transportation expenditures needed to meet the requirements of the capital improvements element of an adopted local government comprehensive plan or for expenditures needed to meet immediate local transportation problems and for other transportation- related expenditures that are critical for building comprehensive roadway networks by local governments. Authorization to Levy: The tax on motor fuel may be levied by an ordinance adopted by a majority plus one vote of the county’s governing body or upon