FL bill aims to shift tax load (kill property tax; create nation's highest sales tax)

[Doondoo]

House Republicans raised the property-tax debate to a new decibel level Wednesday by proposing to eradicate property taxes on the homes of permanent residents in exchange for the nation's highest sales tax.

House Speaker Marco Rubio said the tax shift that voters would have to approve would send nearly $5.8 billion back in the pockets of homeowners and cap rampant local government spending.

In exchange, the state's sales tax would climb from 6 percent to 8.5 percent, higher than even California's sales tax, in order to recoup some of the lost revenue for cities, counties and school districts.

The move is a nuclear option compared with past debates over how to make the Save Our Homes property-tax lid for homesteaders fairer for businesses, snowbirds and renters.

Instead of tinkering with concepts such as Gov. Charlie Crist's proposals to make Save Our Homes discounts "portable" or double the $25,000 homestead exemption, House lawmakers would blow up homesteaded property taxes altogether.


http://www.tallahassee.com/apps/pbcs.dll/article?AID=/20070222/CAPITOLNEWS/702220356&theme=

[ixion]

1. so, varying from city to city, you could pay 10% or more in tax

holy crap. :grr: :puke:

[Orangepeel]

2. wouldn't that kill Florida's tourism based economy?

:shrug:

[NashVegas]

4. I Think It's Their Retirement Community They Worry About

Tennessee last November passed a state amendment that would freeze property tax rates for seniors. Income limits/guidelines are still being debated.

[w4rma]

6. They aren't "worried" about that. They are just pushing their flat tax ideology.

If Republicans really had their way then the sales tax would replace the income tax and the sales tax would be something like 40%.

They see property taxes as just another progressive tax that needs to be destroyed. Property taxes are based on the value of what you own and help spur development and new buisnesses.

Sales taxes hurt retailers, big time. And retail is fast becoming the only type of small buisness that is left in this country with all the manufacturers going overseas because our laws are set up to benefit foreign manufacturers over domestic.

[Doondoo]

8. The merely middle-class tourist economy will be all that's really hit hardest

Ultra-wealth will be preserved behind the shield of property tax elimination, which is the only real battlground goal that matters here. Everyone else be damned.

[piedmont]

3. Property taxes in their current form encourage sprawl

I'm not sure if this sales-tax alternative is the right way to go, but the current system of property taxes makes it financially impossible for property owners to keep land in a natural or agricultural condition once improvements have been made on nearby land. Those improvements make appraised values in the vicinity go up and start a ripple effect of development (sprawl). It would be interesting to see if eliminating the property tax slows sprawl.

[jus_the_facts]

5. Ours are already higher here....total local and state sales taxes combined...

http://www.oedc.org/index.php?option=com_content&task=view&id=19&Itemid=121

sales tax is collected by the State of Louisiana, Ouachita Parish, and its incorporated communities on retail purchases made by consumers.


Sales Tax Rates

Jurisdiction
State Rate
Local Rate
Total Rate

Monroe 4%
5.99%
9.99%

Richwood 4%
5.5%
9.5%

Sterlington 4%
5.5%
9.5%

West Monroe 4%
5.5%
9.5%


....AND even with legalized gambling they're closing schools all over the state. :nopity:

[Hardrada]

7. O ho! FLORIDA again!

[entanglement]

9. This is a cynical attempt to pit middle-class property owners against the working poor

Sales tax increases are regressive and hurt the poor badly. IMHO the correct way to go about it is to increase the state income tax on top earners to offset revenue losses.

[bluedog]

10. Fl has No State Income Tax n/t

[BootinUp]

11. Another benefit for the wealthy. n/t

[olddad56]

12. People should he taxed on hwo they spend their money...

How about we eliminate the individual income tax. Doesn't make sense to tax people on their labor. Why not tax people depending on how they spend their money. Don't tax food. Tax gasoline, tax alcohol, tax nicotine, decriminalize pot and other drugs, make recreational drugs available in govt. controled stores and tax the shit out of them. Tax people depending on how they tax our society. Why should hard working people shoulder the tax burden for those that put a burden on our health care system because of their addictions. Tax those who tax our environment. Let people vote for or against war and tax the people who want the war, to pay for the cost of the war. Tax energy consumption. Just don't tax labor. Give people some say in how they are going to be taxed.

Oh, that would make sense, nevermind

[youngdem]

13. Damn, we have a 9% sales tax, a state income tax and property tax

and we still have the shittiest social services anywhere in the US or Canada.