Taxation and Budget Reform Commission Member McKay Recommends Services Tax, Sales Tax Exemption Review

During the November 5, 2007 meeting of the Finance and Taxation Committee of the Florida Budget and Reform Commission, Commissioner John McKay announced his intention to introduce a proposal for the Commission’s consideration. The new McKay idea would ask voters to approve a constitutional amendment which would direct the Legislature to replace school property taxes by repealing sales tax exemptions or taxing excluded services if the exemption fails to provide a public purpose. However, excluded from the repeal would be the current exemptions on food, prescription drugs, health care, residential rent, and electricity and heating oil.

McKay sought unsuccessfully to advance similar proposals in past years during his presidency of the Florida Senate, and later as chairman of a constitutional amendment petition signature gathering initiative known as Floridians Against Inequities in Rates (FAIR.) His latest proposal would first have to be approved by a majority of the members of the Finance and Taxation Committee, then would ultimately have to win approval by 17 of the 25 members of the full Commission before it could be placed on the ballot for consideration by the voters.

If the constitutional amendment were to pass, it would likely have a profound effect on not only the advertising industry, but the business community as a whole. Your AAF Fourth District GR Team will continue to monitor the situation and report on any new developments.

For the text of the McKay Proposal (CP0002) click here.

To review the minutes of the Nov. 5th Finance and Taxation Committee Meeting click here.

For a listing and brief biography on each of the members of the Florida Taxation and Budget Reform Commission, click here.

To learn more about the FTBRC, click here.