Yet Another Exciting Sales and Property Tax Post

Jim Johnson has a superb post on property taxes. He covers the numbers from a Quinnipiac poll. What is important is only a dismal 34 percent support replacing homeowner property taxes with a sales tax. If the numbers stay at this level there is no chance of getting 60 voter approval to become law.

Jim left an interesting comment at Peer Review.

Both Mr C and Mr G need to read the Fishkind report that analyzed county expenditures to see that there really isn't that much largess in county budgets. The bulk of the increases went to law enforcement.

Moreover, Mr. G - Florida will still have property taxes. Homeowners may not pay them ... but as a renter, I will be paying them. Not to mention the continued shift of the burden to commercial property owners means raising rents for businesses.

Finally, an increase of 2.5% in the sales tax will impact Florida's economy. It would be a de facto 2.5% price increase, doubling inflation in one year. Those costs will be spread across all taxable goods.

I blogged about my proposal today... and I apologize for disagreeing with you, but Rubio's plan presents too many problems to be seriously considered. The current tax structure is preferable to Rubios.

(Oh, and based on the poll numbers I don't see the plan getting the 60% required to pass it anyway.)

I too have read the Fishkind report and blogged about it. What I found interesting is that the report proved my previous statements that property taxes are a tax shift from the state to counties and municipalities.

Property taxes in Florida are collected exclusively by local governments, school boards, special districts and water management district. The State of Florida is precluded from collecting ad valorem taxes. Article VII Section 1(a) of the Florida Constitution makes this clear. “(a) No tax shall be levied except in pursuance of law. No state ad valorem taxes shall be levied upon real estate or tangible personal property. All other forms of taxation shall be preempted to the state except as provided by general law [emphasis added].”

However, the State of Florida does in fact force the collection of property taxes by local school districts, if those districts wish to participate in the Florida Education Funding Program (“FEFP”). In fact, all 67 of Florida’s school districts participate, in part because they also receive very substantial state funds (primarily from the sales tax) by participating. Chapter 1011.71(1), FS sets out the requirements for districts to impose property taxes to meet the requirement of the “required local effort”.

Mr. G admitted he didn't read the report.

Here's the thing kiddies. I read tons of material so you don't have to. I make it a point to be a policy wonk. Jim is the other wonk on the opposite ideological spectrum. I disagree with Jim on a lot of stuff, but I know he is a rising star in the Hillsborough GOP.

People should have some understanding of economics before they blog about it. You are entitled to your own opinions. Not facts.