Sales Tax: Ready For An Increase?
The County Commission is considering the possibility of a one-cent increase in our local sales tax. It might be on the ballot in 2009. Some call it an “infrastructure tax” and others have dubbed it a “quality of life tax.” No matter what it’s called, the purpose would be to address capital needs for such things as utility plants, water supply storage, solid waste facility and new parks.
Remember, this local change could come on top of the state's tax-swap proposal to eliminate school taxes from your property tax bill by paying an additional one-cent in state sales tax. That proposal, via constitutional amendment, will be on the ballot for voters' decision in November 2008.
The one-cent local sales tax is estimated to bring in about $40 million a year and would have a defined length of years to collect it. Click the link below for a Star-Banner editorial on the subject:
www.ocala.com/article/20080327/OPINION/803270319/1008/OPINION&title=An_old_tax__but_a_new_approach
Are you ready to support an increase in the sales tax? Tell us what you think and participate in our “Straw Poll” on the question:
http://www.insitefulsurveys.com/Survey.asp?SI=112021013213
posted by Blog Master @ 7:51 PM
21 Comments:
Could this tax be the way to try to get a road tax passed through the back door?
Don
(OTOW)
Add roads to everything else the tax is going to cover and they might be able to fill a 100 or so potholes!
Get rid of many of the sales tax exemptions and might not need an increase of one per cent in the sales tax.
I pay property taxes like 68% of Marion County residents. I like the sales tax idea because the payment burden is shared by many more people. It is estimated that 22% of the sales tax collections in Marion County are paid by non-county residents. Let the tourists and commuters pay their fair share. We residents get a 22%discount on everything that is built!
The Legislature is already working on the exemptions problem. They have taken a giant step by proposing removal of the exemption for ostrich feed! That should provide all that extra money needed to make up the school revenue shortfall created by the tax swap.
Maybe they should remove ALL sales tax exemptions for the many political ostriches we have in government. Those who have their heads buried in the sand instead of solving real problems.
“MORE ABOUT THE TAX SWAP AMENDMENT”
As Victor mentions, the tax swap proposal leaves a gap ($4 billion)in Florida's $19 billion education budget. The amendment suggests the legislature close that gap by removing sales tax exemptions on some goods and services. Here is an “estimate” of the impact of the tax swap amendment:
A recent study, based on a U.S. Bureau of Labor Statistics survey of personal spending, shows households with the lowest average income $60,000 or less would see modest tax increases ($13-$23) after offsetting a property tax decrease with the sales tax increase. The study shows that households earning $71,000 per year would receive a $30 cut. A $150,000 income household would receive a $146 savings: higher income, higher savings.
The study assumed the legislature would reverse its position on a long-time debate in the legislature and agree to remove sales tax exemptions on some goods and services. If they don’t, the sales tax increase assumptions will be lower and the net tax savings better than those above.
However, even by expanding the sales tax base by repealing tax exemptions on services, as the amendment suggests, a one-penny sales tax increase would cost low-income families a bigger share of their paycheck, the analysis shows. The federal survey of consumer spending shows that poorer households spend a larger portion of their income on sales taxes compared with wealthier families. The U.S. survey shows wealthier households spend a larger percentage of their income on property taxes.
Eliminating the property taxes that pay to operate K-12 schools would erase the sales tax increase for most wealthy families. School taxes account for 27 percent of the statewide average property tax bill. For example, in Palm Beach and St. Lucie counties, property owners pay about 35 percent of their tax bill to schools and in Martin County, 40 percent.
I want to see exactly how much is going to go to each of the departments from the tax money. I wouldn’t want one or two to get all and the others get none.
Tax swap is fine but there are too many unanswered questions about the one cent local tax.
Anyone know how much school taxes is of our total tax bill in Marion County?
Anonymous 8:27am -- educated guess would be around 45%
You are in the ball park.
Millage Rates for School District:
L.R.E. 4.896
Discretionary .7111
Cap. Improv. 2.0
Millage Rates for County Services:
General County 2.73
All Other 4.44
(Includes MSTUs & St. Johns Water)
TOTAL MILLAGE: 14.7728
You do the math on Schools as % of Total Millage!
Too much in taxes for schools for the poor results we are getting.
From my email funny file.
Very soon most every one should be getting a nice tax rebate check.
If we spend that money at Wal-Mart, all the money will go to China.
If we spend it on gasoline it will all go to the Arabs.
If we spend it on fruit and vegetables it will all go to Mexico, Honduras, and Guatemala.
If we purchase a good car it will all go to Japan.
If we purchase useless crap it will all go to Taiwan and none of it will help the American economy.
We need to keep that money here in America. So the only way to keep that money here at home is to buy prostitutes and beer, since those are the only businesses still in the U.S.
My name is Elliot Spitzer and I approved this ad...
I picked both sales tax increases on the poll. That’s a more fair way than hitting up property owners all the time.
NO NEW TAXES!
That seems easy enough to understand.
The tax flip causes a new tax.
The County sales tax is a new tax.
I doubt cty commish can pass anything. their record of handing explanation of any tax issue in last dozen yrs is so bad except for the two year tax that was handled by someone outside cty govt four or five yrs ago. and when they are expanding a park bldg on most prominent corner in ocala while belly-aching about having to pull back on budgets shows we aint got anybody with common sense running govt. I'd tell parks guy to sit in a broom closet instead of doubling his building.
A question. I always heard that the maximum for property taxes is 10 mills. A comment above shows that the amount of tax paid is about 15 mills. What is included in counting the maximum?
STRAW POLL-FINAL RESULTS
(43 Participants)
1. Would you vote for an increase of one cent in our local sales tax to fund specific capital needs the county has in areas such as utility plants, water supply storage, solid waste facilities and parks?
Yes 47%
No 53%
2. Choosing among the sales tax proposals, which would you most support?
(A) Sales tax for county capital needs. 0%
(B) Sales tax swap to eliminate the school tax from property taxes. 44%
(C) I would vote for both (A) & (B). 28%
(D) I would not vote for either (A) or (B). 28%
I'm really surprised so many people voted for the local sales tax in your straw poll.
Voice writes:
I'm not sure if this fits as a sales tax comment but: Does anyone know anything about this new candidate for County Commission 1 Randall E. Alvord?
VoR
what the hell is the deal with blog? what's it gone blank for?
anybody know?
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