AAF Friends,

Earlier this afternoon the Florida Taxation and Budget Reform Commission gave final approval to a controversial tax-swap constitutional amendment proposal sending it to the ballot this fall for consideration by Florida voters.  On a final vote of 18 to 7 commissioners advanced the latest idea pushed by former- state-senator-now-commissioner John McKay. 

The proposed amendment would repeal a state-required local school tax lowering property tax bills by 25% or more. To fill the estimated $9.6-billion hole, the legislature has several options.  Increase the sales tax by one cent, consider spending cuts or repeal existing sales tax exemptions.

Some critics believe the change could ultimately lead to a new tax on services. One of the most vocal critics, State Senator Mike Haridopolos (R-Melbourne) has argued that the "numbers just don't add up, holding a special meeting of his Finance and Tax Committee late last week to air the concerns of the schools and business interests including the AAF Fourth District.

The prospect of a services tax is of paramount concern to the advertising industry, and to the allied film and printing industries as well.   Likewise, a variety of current sales tax exemptions important to the advertising and allied industries could be targeted for repeal as early as 2011 if voters approve the amendment this fall.

At.this writing, based on my early conversations with other lobbyists representing the allied groups -- and possibly also education interests --  there appears to be significant interest in forging a coalition in the coming weeks to begin crafting a media and grassroots campaign in opposition to the amendment.  We intend to be an active participant in the discussions and will be providing more information and seeking further input from members at our upcoming annual conference next weekend in St. Petersburg.

4^th District Government Relations Team
Jack Hebert – AAF 4^th District Lobbyist
Tom Hayes – 4^th District Government Relations Chairman