Exh 8DAGENDA ITEM #8D
APRIL 25, 2005
Memorandum
T0: Key OfFicials
FROM: John Charles Thomas, Director
Legislative and Public Affairs
RE: Proposed Constitutional Amendments to Review FL Sales Tax Exemptions
DATE: April 12, 2005
The Florida League of Cities Board of Directors recently voted to support constitutional
amendments that would require a mandatory review of Florida's sales tax exemptions.
This effort is being spearheaded by a group called Floridians Against Inequities in Rates
(FAIR).
The League is asking cities to support this petition initiative. Attached are three
constitutional amendment petition forms that would amend different sections of the
Florida Constitution. They include:
• Amends Article III, Section 21 -requiring each exemption passed by law to
contain the single subject matter of a single exemption
• Amends Article III, Section 20 -requiring periodic legislative review of sales tax
exemptions
• Amends Article III, Section 22 -requiring the review of extending the sales tax to
non-taxed services
Each petition needs over 600,000 verified signatures in order for it to be placed on the
2006 Ballot. Also attached is a draft resolution for your city's consideration, should you
wish to adopt a resolution.
For additional information, please feel free to contact me at the League or visit
w~vw. fairamendment. com.
Attachments
Cc: FLC Board of Directors
Local/Regional League Contacts
301 South Bronough Street • Post Office Box 1757 • Tallahassee, FL 32302-1757
Telephone (850) 222-9684 • Suncom 278-5331 • Fax (850) 222-3806 • Website:www.flcities.com
AGENDA ITEM #8D
APRIL 25, 2605
Draft Resolution
A RESOLUTION OF THE CITY OF
SUPPORTING AMENDMENTS TO THE FLORIDA CONSTITUTION
REQUIRING THE PERIODIC REVIEW AND APPROVAL OF ALL
SALES TAX EXEMPTIONS AND EXCLUSIONS IN THE STATE OF
FLORIDA.
. WHEREAS, Florida's tax structure is very dependent on sales tax revenues, which
amount to approximately $18.3 billion annually; and
. WHEREAS, Florida now exempts more revenue than it collects, providing sales
tax exemptions for over 400 products and services, amounting to an annual loss of $22.7
billion in tax revenue, and these exemptions are poorly categorized with broad '
' ' disparities; and
WHEREAS, Florida's sales tax exemptions have not been revised or reformed
significantly since 1949; and
WHEREAS, Florida's municipalities rely on sales tax revenues to provide for the
health, safety and welfare of it's citizens, and the proportionate share in this revenue
source for each municipality is a stable reliable resource; and
. WHEREAS, the inequities in Florida's sales tax cause the state and municipalities
to be more dependent on other revenue sources, such as the property tax; and
WHEREAS, a group called Floridians Against Inequities and Rates (FAIR) is
pursuing three constitutional amendments to the 2006 ballot that, if approved, would
sunset all current sales tax exemptions in July, 2008, unless the Legislature votes to
renew the exemption; and
WHEREAS, the constitutional amendment would protect sales tax exemptions for
food, prescription drugs, health services, residential rent, electricity and heating fuel, for
' the greatest of public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF
Section 1. That the City of supports the FAIR
amendment and urges its citizens to sign petitions supporting its placement on the
November ballot.
Section 2. That the City of urges voters to support
. , this initiative on the November, 2006 ballot.
PASSED AND ADOPTED by the City of this _th Day of
2005.
AGENDA ITEM #8D
APRIL 25, 2005
T~I121'JE PETITIONS • READ EAC~I CAREFULLY • SIGN AND DATE ANY 012 ALL
' ~ CONSTITUTIONAL AtYIENDYIENT PETITION FORIYI
PLEASE PRINT LEGIBLY FLORIDA REGISTERED VOTL• RS ONLY SIGN ONLY ONCE
104.135---A person who knowingly signs a pctition or petitions for a candidate, a minor political parry, or an issttc more than
one time commits a misdemeanor of the first degree, punishable as provided in s. 775.032 or s. 775.033.
BALLOT TITLE:
I Initiative directing manner by which sales
tax exemptions are granted by the legislature
I BALLOT SUMMARY:
Each law granting an exemption to the sales tax shall
contain a legislative detcmvnation that such exemption
advances or serves a public purpose and shall contain
the single subject of a single exemption.
I am rr registered voter of Florida curd hereGy pctition the Secretary ojState
to place the fulfrnving mncndurent to the Flarirla Constitution un the Ga11ot
in the s~cnera! election.
lS THIS A CHANGC OF ADDRESS }VITHINTNF,SAA~IF. OUNT}'ON1.Y
FOR VOTER REGISTRATlON7 ^ YES ^ NO
NAME
Please print name as it appears on Voter I.D. Card
STREET ADDRESS
CITY
ZiP
COUNTY
VOTER REGISTRATION NUMBER
(OR) DATE OF B[RTH / /
rULL TEXT OF PROPOSED AitiIENDMENT: I3E IT ENACTED BY THE PEOPLE Or rLORIDA THAT:
' ' Article III of the I+lorida Constitution is hereby amended to add the following as Section 21:
' Laws creating sales tax exemptions.--
Eacl> law creating ar reenacting a sales tax exemption shall contain tl}c 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: rLORIDIANS AGAINST INEQUITIES IN RATES (rAIR)
P.O. BOY 13G89
TALLr1FIASSEE, FL 32317
'~ Date
Signature of Registered Vatcr Date Signed
For Office Use Only:
Serial Number: OS-09
Date Approved:01-2 I -OS
Pd PoL Attie Pnid fur by
Floridians Agrrirur Inrynilies in ltures (Fi11X)
SrnururJulrnhlcXay, Chuinnan.
or for more
AGENDA ITEM #8D
APRIL 25, 2005
CONSTITUTIONAL AMENDMIrNT P.CTITION FORIYI
PLEASL• PRINT LEGIBLY FLORIDA REGISTERED VOTERS ONLY SIGN ONLY ONCE
104.135---A person who knowingly signs a petition or petitions for a candidate, a minor political party, or an issue more than
one time commits a misdemeanor of the f rst degree, punishable as provided in s. 775.032 ors. 775.083.
BALLOT TITLIJ:
Initiative requiring legislative
determination that sales tax exemptions
serve a public purpose
BALLOT SUMMARY:
The legislariu-c shall periodically review all sales tax
exemptions except dose currently provided for. food;
prescription drugs; health services; and residential rent,
electricity and heating fuel. A$er such review, the
legislature shall reenact and continue only those
exemptions that advance or serve a legislatively
detemrined public purpose. Sales tax exemptions not
reenacted and continued by the legislature shall be
eluninated.
I rurr a registcrerl voter of Florida and hereby petition the Secretory of Strrle
to place the following anrelulnrent to the Florida Constitution un the ballot
ir: the general election.
IS THIS A CHANGE OF ADDRESS lVlTHIN TffE SAhI ~ O lNTY l)N! Y
FoR VOTER REGIST[LAT10N'.' ^ YES ^ NU
NAME
Please print name as it appears on Voter I.D. Card
STREET ADDRESS
CITY ZIP
COUNTY
VOTER REGISTRATION NUMBER
(OR) DATE OF BIRTH / /
FULL TEYT OF PROPOSIrD AMI'JNDMI';NT: B1J IT 1',NACTI';D BY THI'J PI'JOPLl; Or FLORIDA THAT:
Article III of the Florida Constitution is hereby amended to add tl><e following as Section 20:
Periodic legislative review of sales trix exemptions.-
Except for the current exemptions provided for: food; prescription drugs; health services; and residential rcpt, electricity and heating fuel, the
legislature shall, prior to July 1, 2008, and prior to the first day of July for cacti tenth year thereafter, review all exemptions froth the sales tax
existing on or created subsequent to the effective date of this amendment. The Legislature shall reenact and continue only those exemptions
determined to advance or serve a public purpose. Those exemptions not reenacted and continued shall lapse and end effective January l
subsequent to the Jrtly 1 deadline enumerated in this section for the review of sales tax exemptions.
RIrTURN TO: FLORIDIANS AGr1INST INEQUITIES IN RATES (FAIR)
P.O. BOX 13689
TALLAI3ASS>;I:, FL 32317
`~ Date
Signature of Registered Voter
Date Signed
For Office Use Otrly:
Serial Number: OS-02
Date Approved: O1-2l-OS
Yd. Pul. itdr Paid fur by
Floridians Agairrsr Jneynirirs in Rarrs (F~1JR)
Srnarur John itJcXuy, Chairman.
or ror more
AGENDA ITEM #3D
APRIL 25, 2005
CONSTITUTIONAL AMENDMENT PETITION I'OR1VI
PLEASE PRINT LEGIBLY FLORIDA REGISTERED VOTERS ONLY SIGN ONLY ONCE
104. (35---A person who knowingly signs :1 petition or petitions fur a candidate, a minor political party, ar an issue ntarc than
one tinic commits a nlisdemcanor of tlic first degree, punishable as provided ins. 775.082 or s. 775.033.
BALLOT TITLE:
Extending existing sales tax to non-taxed
services where exclusion fails to serve
public purpose
BALLOT SUMMARY:
Except for the payment of employee salaries and
benefits, all non-taxed services provided for
compensation shall be reviewed by the Legislature to
detemune whether the exclusion of each service from
taxation serves a public purpose. Upon completion of
such t~view, services currently not taxed and wluch are
not exempted from r`-ucation by the Lelrislattu~e shall be
subject to the sales tax on January 1, 2009.
I atn a registered voter of Florida and hcreLy petitiatr the Secretary of State
to plncc the following amenrbnent to the Florida Constitution vn the Lallat
in the general elcctiotr.
IS THIS A CHANGE OF ADDRESS {VITf11N THR,S.1 A?F. O /NTY ON .Y
FOR VOTER RL•GISTRATION'? ^ YES ~ NO
NAME
Please print name as it appears on Voter I.D. Card
STREET ADDRESS
CITY ZIP
COUNTY
VOTER REGISTRATION NUMBER
(Olt) DATE OF BIRTH / /
rULL TEXT Or PROPOSED AMENDMENT: BE IT ENACTED BY THE PEOPLE Or rLORIDA THAT:
Article III of the Tlorida Constitution is Hereby amended to add the following as Section 22:
Extension of sales tax to non-taxed services.--
(a) The legislature shall, prior to July 1, 2008, review each service rendered for compensation that is not taxed under the existing sales tax
authorized in Chapter 212, Florida Statutes, and shall exempt froth future taxation only those scrviccs whose exemption is determined to advance
or serve a public purpose. Except for the payment of employee salaries and benefits, all scrviccs that are not exempted by the legislature shall
be subject to the existing sales tax etI'ective January 1, 2009.
(b) To accomplish the public purpose review of each service that is mandated in this section, a single service shall be that rendered by a
business, industry or profession with at least the same first four digits in its NAILS code number as described by the North American Industry
Classification System code published by the United States Census Bureau, or its successor in function.
RETURN TO: FLORIDIANS AGAINST INEQUITIES IN RATES (rAIR)
P.O. BOX 13689
TALLAHASSEE, FL 32317
X Datc
Signature of Registered Voter
UC [UC I1lorC
For Office Use Only:
Serial Number: OS-04
Dote Approved: 01-21-OS
Pd PuL Adr Puirifor by
F?uriJiansilguirut Inequilics in Rules (FiI1R)
SenulurJolur ~t(cXa}; Cltuirnran.
Date Signed
ion: www.lairamcndmcnt.