Reso 2007-1067 - Laserfiche WebLink

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local governments to obtain the necessary funding to cover thc cost of those mandated services. Such mandates include pensions, police wages, etc. 4. If this proposal affects the County, then the levels of services that the County provides the Municipalities such as Fire, Water and Sewer, Police, Library could also cause a burden on the Municipalities. 5. A sales tax increase is regressive in that it transfers much of the burdcn to low and middle class families. Additionally, Property Tax relief disproportionately favors higher income familics. 6. Sales tax will hurt the tourist industry by increasing this tax by 40%. There are other Sunshine destinations besides Florida that tourists may instcad travel to. 7. Sales Tax is not a stable funding source compared to Property Taxes as they (Sales Tax) are more susceptible to economic cycles. This can be at a time when the demands on local services increase. This point was actually made recently in a memo by the House Speaker that so far this year the largest decline of general revenue funds is from sales tax collections. 8. Why use up the "last line of dcfense" which is the ability to raise emergency funds in times of disaster by increasing sales taxes now when all that's needed is a fair method of assessment of property taxes? 9. If taxes are rolled back for all propcrties, what mechanism is in place to assure renters that their landlords would pass on this savings? Would consumers be assured that retail and commercial propcrty owners would reduce cost of their products and services to rcflect the reduction in local Property Taxes? 10. Many Municipalities have financcd infrastructure improvements through bond issuance. These securities require certain financial ratios to be maintained and the sales tax formula could create conditions of default due to changes in revenue streams caused by these roll backs, and possibly put some cities in bankruptcy. 11. Municipalities such as Sunny Isles Beach have financed capital improvement projects on a "pay-as-you-go" basis instead of issuing debt. The proposal could force the city to incur debt, while at thc same time imposing restrictions on thc city that increase the cost of debt the city is forced to issue. This proposal rewards the issuance of debt and punishes pay-as-you-go spending while increasing the cost of debt. 12. The proposal provides a disincentive to implemcnt growth management initiatives, since new construction will be the only way to increase the tax base, even as funding to service the new growth will be restricted. 13. Thc "Save our Homes" Property Tax cap for Homestead and Property created the disproportionate situation and this area is in need of correction. 14. The severity of the spending cuts is such that it could severely impact municipalities ability to respond to any disaster scenarios. 15. This proposal negativcly impacts other funding streams for municipalities, such as the Community Budget Issue Requests. 16. Please note that unlike the local government requirement for a unanimous vote of the governing body to exceed the millage cap, the legislature can exceed their cap by only a 2/3 vote. 17. Without adequate funding, virtually all municipalities will become blighted. R2007- Opposing Leg Plan To Eliminate Property Tax.Doc 2