Fort Walton Beach Council agenda — 05-10-05 — reading text

stal8d public purpose that does one of the following: encourages economic development and competitiveness supports educational, govemmental, literary, scientific, raligious, or charitable initiatives secures tax faimess Single subject consideration a must - Exemptions can only be reenacted in legislative bills as a single subject - no trains with dozens of exemptions! Exceptions from the review - are provided for food, drugs, health services, residential rent and utilities, sales for resale, sales of real property or stocks and bonds, and employee salaries and benefits. Hair care products Haircuts and coloring Laundry detergen1s and washing machines Laundry service and dry cleaning Movie theater admission Super Bowl tickets, football skyboxes Lawnmowers Lawn service Food for your dog or cat Food for ostriches and racehorses Chemicals to clean your own pool Pool Services Seeds for your garden Seeds for farmers Software Why Florida needs tax reform Our current sales tax system was created in 1949 to meet the needs of a 1949 Florida. It served us well for many years but now is outdated and in need of reform to meet a growing and dynamic Florida. Our sales tax system is no longer equitable and sustainable. Special interests have gotten the Legislature to add about 440 exemptions. Simply put - it's unfair. The current sales tax places a disproportionate burden on Florida households and relies heavily on an eroding portion of our overall economy. In 1964 sales tax applied to about 68% of the state' s economic activity; today the sales tax applies to less than 42%. In dollars, that means that this year, Florida is expected to collect about $19. 4 billion in sales taxes, but will exempt more than twice as much -$ 43.6 billion. The Fair amendmen1s are good for Florida' s future 43. 6 billion total. It is a comprehensive review of all sales tax exemDtions and exclusions - approximately $ It leaves the decision on which exemptions and exclusions to reenact in the hands of the legislators we all elect! It does not raise anv taxes - legislators can reenact every exemption if they desire to do so. y' It requires every future exemption to be voted on as a single subject - on its own merits and with a specific purpose stated. The Fair Amendments are similar to instructions to the Legislature already included in Florida' s Constitution, such as a review of state trust funds every ten years. Revenues derived from repealed sales tax exemptions or exclusions can be used to fund critical state needs or to further reduce or repeal other current taxes. ( For example, the Legislature could choose to reduce the general sales tax rate or lower property taxes.) For more information on the FAIR Amendment or to print the FAIR petition form, please visit us on the web at:www.fairamendment.com or mail to: Floridians Against Inequities in Rates, P.O. Box 13689, Tallahassee, FL 32317 Pd. Pol.Adv. Paid for by FAIR.  1 RESOLUTION 2005- 09 2 3 A RESOLUTION OF THE CITY OF FORT WALTON 4 BEACH, FLORIDA, SUPPORTING AMENDMENTS TO 5 THE FLORIDA CONSTITUTION REQUIRING THE 6 PERIODIC REVIEW AND APPROVAL OF ALL SALES 7 TAX EXEMPTIONS AND EXCLUSIONS IN THE 8 STATE OF FLORIDA. 9 10 WHEREAS, Florida' s tax structure is very dependent on sales tax revenues, which 11 amount to approximately $ 18. 3 billion annually; and 12 13 WHEREAS, Florida now exempts more revenue than it collects, providing sales tax 14 exemptions for 400 products and services, over amounting to an annual loss of $22. 7 15 billion in tax revenue, and these exemptions are poorly categorized with broad 16 disparities; and 17 18 WHEREAS, Florida' s sales tax exemptions have not been revised or reformed 19 significantly since 1949; and 20 21 WHEREAS, Florida' s municipalities rely on sales tax revenues to provide for the health, 22 safety and welfare of its citizens, and the proportionate share in this revenue source for 23 each municipality is a stable reliable resource; and 24 25 WHEREAS, the inequities in Florida' s sales tax cause the state and municipalities to be 26 more dependent on other revenue sources, such as the property tax; and 27 28 WHEREAS, a group called Floridians Against Inequities and Rates ( FAIR) is pursuing 29 three constitutional amendments to the 2006 ballot that, if approved, would sunset all 30 currentsales tax exemptions in July, 2008, unless the Legislature votes to renew the 31 exemption; and 32 33 WHEREAS, the constitutional amendment would protect sales tax exemptions for food, 34 prescription drugs, health services, residential rent, electricity and heating fuel, for the 35 greatest of public interest. 36 37 NOW, THEREFORE, BE IT RESOL VED, THAT 38 39 Section I. The City Council of the City of Fort Walton Beach supports the FAIR 40 amendment and urges its citizens to sign petitions supporting its placement on the 41 November ballot. 42 43 Section II. The City of Fort Walton Beach urges voters to support this initiative on the 44 November, 2006 ballot. 45 U:\CJones\ DPT002bM\ y Docs CJ\05- 04-05 Res re FL sales tax exemptions. doc 46 Section III. This Resolution is effective immediately upon approval by the City Council 47 and signature ofthe Mayor. 48 49 Adopted: 50 51 Mayor: 52 Michael G. Anderson 53 54 Attest: 55 56 57 Helen Spencer, City Clerk 58 59 60 Approved as to form and legal sufficiency: 61 62 63 64 Toni L.Craig, City Attorney 65 66 67 U:\ CJones\DPT0 2b\ My Docs CJ\05- 04-05 Res re FL sales tax exemptions, doc  THREE PETITIONS READ EACH CAREFULLY . ~h~ N AND DATE ANY OR ALL CONSTITUTIONAL AMENDMENT PETITION FORM PLEASE PRINT LEGIBLY FLORIDA REGISTERED VOTERS ONLY SIGN ONLY ONCE I 04. I A who knowingly signs a petition or petitions for a candidate, a minor 85--- person political party, or an issue more than one time commits a misdemeanor of the first degree, punishable as provided in s. 775. 082 or s. 775. 083. BALLOT TITLE: I am a registered voter of Florida and hereby petition the Secretary of State to place the following amendment to the Florida Constitlltion on the ballot Initiative directing manner by which sales in the general election. tax exemptions are granted by the legislature IS THIS A CHANGE OF ADDRESS WITHIN THE SA ME r. mJNTY ONI Y FOR VOTER REGISTRAT/ON? [:J YES [:J NO BALLOT SUMMARY: NAME Please print name as it appears on Yoter J.D. Card Each law granting an exemption to the sales tax shall contain a legislative detennination that such exemption STREET ADDRESS advances or serves a public purpose and shall contain the single subject of a single exemption. CITY ZIP COUNTY YOTER REGISTRATION NUMBER OR) DATE OF BIRTH FULL TEXT OF PROPOSED AMENDMENT: BE IT ENACTED BY THE PEOPLE OF FLORIDA THAT: Article III of the Florida Constitution is hereby amended to add the following as Section 21: Laws creating sales tax exemptions.- Each law creating or reenacting a sales tax exemption shall contain the single subject matter of a single exemption and shall contain a factual statement of the public purpose advanced or served by the exemption. RETURN TO: FLORIDIANS AGAINST INEQUITIES IN RATES ( FAIR) For Office Use Only: P.O. BOX 13689 Serial Number: 05- 09 TALLAHASSEE, FL 32317 Date Approved: O 1- 21- 05 Pd. PoL Adv. Paid for by X Floridians Against Inequities in Rates ( FAIR) Date Senator John McKay, Chairman. Signature of Registered Voter Date Signed To volunteer, contnbute, or for more infom1atlon: www.fairamendment. com