Florida members of the AAAA are actively working to defeat a proposed change in the state’s sales tax rules that they fear could lead to a reprise of the state’s 1987 ad tax fight.
The threat comes from a referendum proposal that will appear on the November ballot. The proposed amendment, if approved by 60% of state voters, would cut the state property tax by 25%. However, in cutting the property tax, the amendment requires the state legislature to maintain the current level of education funding, derived largely from current property tax revenues.
While the amendment does not direct the legislature specifically on where to find the estimated $9 billion in "new" education revenues, it does include authorization to allow legislators to raise the 6 cents sales tax by one cent and allows it to eliminate existing sales tax exemptions.
The one cent tax increase could raise only $4 billion, meaning that the legislature would need to locate another $5 billion - likely through changes to the sales tax law. Many current state sales tax exemptions - including that for advertising and media -- could be at risk.
Opposition Forming From Business Groups
Opposition to the tax proposal from state business and advertising organizations is beginning to form in Florida. A number of groups are organizing local and statewide campaigns to educate voters about the negative effects of the "tax swap". The Florida Association of Broadcasters and several other business organizations have announced plans to undertake a $4 million lobbying campaign (using donated media), aimed at defeating the amendment.
For more detailed information about the amendment, see the website developed by State Senator Mike Haridopolos, a leading spokesman against the tax proposal: www.protectfloridasfuture.com.
Involvement of the Advertising Community
The AAAA is working with representatives of District 4 of the American Advertising Federation (AAF) and the Broadcasters to fight the proposal. For more information on this issue, contact Linda Dove in the AAAA Washington Office.