Tampabay.com
JANUARY 17, 2008

For Florida's tax panel, a surprising vote

Despite strong opposition from business and agriculture interests, members of the Taxation and Budget Reform Commission on Thursday passed a proposal to give voters the option of reducing property taxes by shifting the burden to taxing some services and eliminating some exemptions.

The 7-3 vote, at a meeting of the commission's Government Procedures and Services Committee, was a victory for former Senate President John McKay, who has been on nearly a decade-long crusade to overhaul Florida's tax system. McKay's allies now include Darryl Rouson, a St. Petersburg lawyer and the co-sponsor who was among those in favor. "I like the idea of transferring the tax burden," Rouson said.

The proposal would reduce property tax bills by at least 25 percent by eliminating property taxes collected statewide imposed by the Legislature to support public schools, about $8-billion a year. Replacing that would be an equal amount of taxes on services or the closing of exemptions, which McKay calls "special interest tax breaks" that benefit only a politically-connected few.

Testifying in opposition were lobbyists for Realtors, accountants, architects, farmers and other groups who said the tax shift would unfairly penalize businesses and reduce Florida's ability to compete with other states and foreign countries. 

The three members who voted no were Orlando lawyer Jacinta Mathis, Clearwater real estate agent Nancy Riley and Brian Yablonski, a St. Joe Company executive. The tax proposal's next stop is the potentially hostile Finance & Taxation Committee.

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