Recommendations of the Tax Equity
Working Group
Presented to:
Meeting in
by
William H.
Levison
browact@comcast.net
Mr.
Chairman and distinguished members of the Florida Taxation and Budget Reform
Commission. I am Bill Levison, a
Commissioner Wilkinson was
quoted recently in the press as saying that Save our Homes has encouraged
runaway spending. I also note that the number
one principle guiding the Finance and Tax Committee reads, in part:
"Equity and Fairness – The Florida tax system should treat individuals
equitably. It should impose similar tax
burdens on people in similar circumstances."
In response to these
observations, we suggest the following policies for curbing runaway spending and
for providing the desired equity and fairness.
Much of what we propose builds on the tax reduction and limitation
reforms passed by the Legislature in June, but with enhancements to prevent the
taxing authorities from thwarting the spirit of those reforms.
1.
Roll back
revenues in each county to 2001, allowing for inflation plus growth.
2.
For subsequent
years, limit both spending and property tax revenues for each taxing authority
to the level of the previous year plus percentage increments of inflation and
growth. Limits on spending are needed so
that the proposed revenue limits cannot be circumvented by simply increasing
fees. Limits on property tax revenues
should be decreased by the cost of services, if any, that have been transferred
to other revenue sources.
3.
If new taxing
authorities are created within a county, readjust the taxes levied by the previously
existing authorities so that the total revenues raised by all taxing authorities
conform to the limits specified above.
4.
Taxes levied by a
taxing authority may be increased beyond the limits specified above only by a
majority of the public voting in a special election. This provision helps enforce the limits on
yearly increments to inflation plus growth, which can currently be overridden
by up to 10 percent by the taxing authority alone.
5.
Phase out the
current caps on yearly increases in taxable property assessments in a manner
mindful of current beneficiaries. Once
the limits on taxing and spending described above are in place, these caps will
not be needed, because property taxes will be largely immune to overall
increases in property values. Furthermore, such a policy is consistent with the
Commission's call for tax equity and fairness.
6.
Retain exemptions
for
7.
Tax commercial
properties according to current use.
In addition, we urge the
Commission to consider mechanisms for reducing the burden borne by the property
tax, such as:
a. Transferring
to the state the administration of justice currently borne by the counties.
b. Increasing
the sales tax rate.
c. Eliminating all sales tax exemptions that do not serve a valid
public purpose.
We intend to elaborate on
these and additional concepts in a forthcoming document.
Thank you for your kind
attention.
Respectfully submitted,
William
H. Levison
Members of the Tax Equity
Working Group:
Carlos
Iniguez, member, Broward Activists for Tax Equity
Dory
Kilburn, Taxation Relief Committee member, Boynton Intracoastal Group
William
H. Levison, founder, Broward Activists for Tax Equity
Frank
MacNeil, member, co-founder, Committee for Fair Florida Real Estate Taxes
Sidney
Margles, board member, Broward Activists for Tax Equity
Edwina
Nelon, board member, Coalition Against Runaway Taxes