PROPERTY TAX FLIM FLAM
On
January 30, the House Appropriations Committee approved SF 2023, so-called
funding for the mental health risk pool. Despite the rhetoric from the
Senate, this bill does not provide any property tax relief.
Recently, the Duane Arnold Nuclear Power Plan was sold to Florida Power and
Light. Under current law, when the owner of an electrical generating plant
property does not have any other property in the State and no consumers, the
property taxes generated from the plant are deposited in the
Property Tax Relief Fund. The funds in the Property
Tax Relief Fund are distributed to counties to replace property taxes used
for MH/MR/DD services. Current law provides dollar-for-dollar property tax
relief.
SF 2023
would scoop this specific property tax collected and divert it to the Mental
Health Risk Pool. The Mental Health Risk Pool is used by counties that have
run out of funds for their mental health programs, meet certain criteria,
and would have to cut people off if no other funds were available. The
property tax scooped would be $627,000 in FY 2008 and $1.2 million in FY
2009.
SF 2023
was approved on a 14-11 party-line vote and now moves to the House floor.
I am
deeply concerned about funding for mental health services and supported
increases to the counties last session. However, instead of permanently
changing the way utility tax proceeds are distributed, the funding should
come from the state’s general fund or at the very least the utility tax
generation task force (comprised of the utilities and the recipients of the
money) should look at the issue.
In
addition, I will continue to push for meaningful property tax relief
measures over the course of the remaining three months of session.
STATE REVENUE GROWTH STRONG THROUGH JANUARY-
STILL NO NEED FOR TAX HIKES
Last
Friday, February 1, Fiscal Services released its report on general fund
revenue growth through the first seven months of FY 08. Strong growth
continued as gross general fund revenue grew by 10 percent compared to FY
07. The growth is more evidence that tax increases are not needed to balance
the budget.
Through
January, general fund revenue increased by $321.1 million, or 9.7 percent
year-to-date. The Revenue Estimate Conference (REC) estimate is 6.9 percent
compared to FY 07. The REC will meet again in late March or early April to
review and potentially revise the estimates for FY 08 and FY 09.
Once
again, all major facets comprising the general fund increased compared to
last year.
Personal
income tax receipts grew by $140.8 million, or 8.7 percent compared to the
REC estimate of 6.7 percent. Sales and use tax receipts grew by $42.4
million, or 4 percent, compared to the REC estimate of 2.8 percent.
Corporate income tax receipts grew by $26 million, or 11.6 percent compared
to the REC estimate of 5.3 percent.
In addition, other taxes were up $84
million, or 43 percent compared to the REC estimate of 37 percent. The
primary driver of other tax revenue growth is the increase in the cigarette
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