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Senate Bill 0938

Senate Bill sb0938

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    Florida Senate - 2002                                  SJR 938

    By Senators Pruitt, Carlton, McKay, Latvala, King, Lee and
    Rossin




    26-11K-02

  1                 Senate Joint Resolution No. ____

  2         A joint resolution proposing the creation of

  3         Section 19 of Article VII of the State

  4         Constitution; declaring policy regarding sales

  5         and use tax; reducing the general state sales

  6         tax rate; requiring an extraordinary

  7         legislative vote for an increase in the sales

  8         tax rate; limiting sales tax revenues;

  9         abolishing exemptions except on specified

10         products and services; prescribing purposes

11         that new exemptions must serve; requiring

12         conditions and an extraordinary legislative

13         vote for exemptions; providing for using excess

14         sales tax revenues to provide local tax relief;

15         abolishing the intangibles tax, health care

16         assessments, alcoholic beverage surcharges, and

17         other taxes.

18  

19  Be It Resolved by the Legislature of the State of Florida:

20  

21         That the creation of Section 19 of Article VII of the

22  State Constitution is agreed to and shall be submitted to the

23  electors of this state for approval or rejection at the next

24  general election or at an earlier special election

25  specifically authorized by law for that purpose:

26                           ARTICLE VII

27                       FINANCE AND TAXATION

28         Section 19.  Broadening the state's sales tax base;

29  lowering the tax rate; exemptions from general state sales and

30  use tax; tax fairness; revenue neutrality; repeal of taxes.--

31  

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    Florida Senate - 2002                                  SJR 938
    26-11K-02




  1         (a)  In order for the state to meet the growing needs

  2  of its people, the state's tax base must be stable and must

  3  grow with the economy. Since the sales and use tax is the most

  4  important source of state general revenue, it should be stable

  5  as well as responsive to the economy. To ensure such stability

  6  and responsiveness, the sales and use tax base should be as

  7  broad as possible with as low a tax rate as possible.

  8         (b)  Effective July 1, 2004:

  9         (1)  The general state sales and use tax rate shall not

10  be more than 4 percent unless a higher rate is approved by a

11  three-fifths vote of the membership of each house of the

12  legislature.

13         (2)  All sales of goods and services are subject to the

14  general state sales and use tax; and no exemptions from the

15  general state sales and use tax shall exist, except for sales

16  of groceries, health services, prescription drugs, residential

17  rent, and basic residential telephone service, as defined by

18  general law, and except for sales of goods and services

19  specifically exempted in accordance with the provisions of

20  subsections (c) and (d).

21         (c)  Each exemption from the general state sales and

22  use tax granted by the legislature after the effective date of

23  this section must advance at least one of the following state

24  public purposes: encouraging economic development and

25  competitiveness; supporting educational, governmental,

26  religious, or charitable initiatives or institutions; or

27  securing tax fairness by reducing or eliminating regressive

28  tax burdens.

29         (d)  Effective July 1, 2004, each exemption from the

30  general state sales and use tax granted by the legislature

31  must be enacted by a three-fifths vote of the membership of

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    Florida Senate - 2002                                  SJR 938
    26-11K-02




  1  each house of the legislature in a general law that embraces

  2  no subject matter other than the singular exemption granted

  3  and that declares the state public purpose satisfied or

  4  advanced by the exemption.

  5         (e)  To ensure revenue neutrality, general state sales

  6  and use tax revenues generated for state fiscal year

  7  2004-2005, as estimated by the revenue estimating conference,

  8  must be no more than the amount of general state sales and use

  9  tax revenues and revenues from the sources enumerated in

10  subsection (g) collected during the prior state fiscal year,

11  adjusted by the average rate of growth in general state sales

12  and use tax revenues over the most recent five state fiscal

13  years. The legislature shall enact general law, effective July

14  1, 2004, to implement this section and ensure revenue

15  neutrality by granting exemptions in accordance with

16  subsection (c). The provisions of subsections (b) and (g)

17  shall not depend on the passage of such implementing

18  legislation.

19         (f)  Increased local government sales surtaxes realized

20  as a result of legislative changes necessary to implement this

21  section shall be used to reduce ad valorem taxes or other

22  local taxes or fees as provided by general law.

23         (g)  Effective July 1, 2004, the legislature shall

24  repeal or eliminate the following:

25         (1)  The annual tax on intangible personal property now

26  imposed under section 199.032, Florida Statutes;

27         (2)  Health care assessments now imposed under sections

28  395.701 and 395.7015, Florida Statutes;

29         (3)  Surcharges on sales of alcoholic beverages now

30  imposed under section 561.501, Florida Statutes; and

31  

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    Florida Senate - 2002                                  SJR 938
    26-11K-02




  1         (4)  Other impositions that are replaced by the general

  2  sales and use tax.

  3         BE IT FURTHER RESOLVED that the following statement be

  4  placed on the ballot:

  5                     CONSTITUTIONAL AMENDMENT

  6                     ARTICLE VII, SECTION 19

  7         TAX REFORM.--Proposing an amendment to the State

  8  Constitution to declare policy regarding sales and use tax;

  9  reduce the sales tax rate; abolish exemptions, except on

10  specified products and services, and require the Legislature

11  to enact new exemptions to ensure revenue neutrality;

12  prescribe purposes that new exemptions must serve; require

13  conditions and a three-fifths legislative vote for exemptions

14  or rate increases; provide for using excess sales tax revenues

15  to provide local tax relief; and abolish the intangibles tax,

16  health care assessments, alcoholic beverage surcharges, and

17  other taxes.

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