Florida tax swap plan to come up for vote

By Alex Leary, Times Staff Writer
In print: Thursday, April 24, 2008

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TALLAHASSEE — Voters will likely still get a chance in November to eliminate most school property taxes in favor of a higher sales tax under a plan that comes up for a final vote before a powerful commission today.

The plan was in jeopardy as recently as a week ago when the Taxation and Budget Reform Commission killed off another ballot question that would have capped all government revenue.

"I was very disappointed," said Commissioner Patricia Levesque. "But I still believe we should have some property tax relief."

The so-called tax swap plan, which backers say would cut property taxes by 25 percent, already passed the tax commission once, 21-4. But that was a month ago. Since then it has gone through a "style and drafting committee" which inserted new language that may prove explosive today.

Business groups that are trying to kill the plan were outraged at a provision that pre-empts a services tax on real estate commissions and the sale of stocks and bonds. They fear a higher sales tax but also the possibility of a tax on services to make up for $9-billion or more in lost school property taxes.

"To add two exemptions at the eleventh hour just doesn't seem right," said Pat Roberts, president of the Florida Association of Broadcasters. "That they even made exemptions makes it very clear they know we could be headed to a services tax."

In 1987, the state passed a services tax but it was quickly appealed due to a backlash.

Levesque, who heads former Gov. Jeb Bush's education foundation, said there's no trickery at play. She said the exemptions for real property and stocks and bonds were in the earlier proposal, sponsored by former Senate President John McKay, and a similar version she offered.

The language was stripped out in the amendatory process, she said, but the style and drafting committee believed commissioners intended it to be included.

Not everyone agrees.

"This is clearly a new issue," said Greg Turbeville, who was one of the few people to originally vote against the proposal last month.

Of the 25 tax commission members, 17 must vote in favor of the plan for it to appear on the November 2008 ballot.