2/22/08

The State of Florida is facing difficult financial times.  In 2007, budget cuts amounted to more than $1BILLION. If trends continue in the current direction, there could be budget cuts of up to $4.1 billion over the next four years.  For these reasons, a number of Broward Days team leaders and members have joined forces to provide the following revenue creation ideas which could mitigate Florida’s financial problems. 

First and foremost, the Legislature must conduct a periodic review of all sales tax exemptions and exclusions.  Exemptions alone amount to $12 BILLION and exclusions are worth an additional $23.4 BILLION.  All exemptions and exclusions found no longer to be in the public’s interest should be repealed and any revenue resulting from said repeal should be earmarked for much-needed services, such as education and other health and human services.

Second, the State must become a full member of the Streamlined Sales Tax Initiative.  This involves enforcement of existing laws to collect sales tax on internet and other remote sales transactions.  It is estimated that the State of Florida is losing $1- 4 BILLION per year due to uncollected remote sales taxes. 

Other revenue creation ideas include but are not limited to:

• creating an economic stimulus package focusing on affordable housing, transportation, building schools, and expanding/improving Florida’s ports
• allowing counties to levy a transfer tax
• exploring the possibility of imposing an estate tax, income tax, and service tax
• removing the cap on the Sadowski fund
• supporting a compact with Indian tribes

Broward Days Team Leaders and Members generally support creativity and innovation in the examination of the State’s financial situation and currently existing tax system.  In particular, we encourage the Legislature to explore the above-mentioned solutions as ways to increase revenue in order to fund much-needed services in the State of Florida.