A proposed constitutional amendment offering to reduce local property taxes in exchange for an increase in sales tax and a possible elimination of some current sales tax exemptions is under consideration in Florida. The state legislature's Style and Drafting Committee is drafting new language designed to withstand the scrutiny of Florida courts. The amendment would direct the Florida legislature to review current sales tax exemptions and eventually revise which industries should benefit from tax exemptions. The Taxation and Budget Reform Commission must approve the plan this month in order for it to appear on a May ballot for voter approval or rejection. Some commission members, including State Sen. Mike Haridopolos, R-Melbourne, have requested more specific details on which exemptions lawmakers want to eliminate to help fill the revenue gap. The proposal comes after an earlier plan to eliminate the services tax exemption was rejected in February. The AAF and local ad clubs have worked to oppose these changes, because the amendment could lead to a sales tax on advertising, which would immediately harm the industry, raise overall tax costs and cause economic damage.
from the AAF Government Report, April 4, 2008
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