Title on Ballot: Tangible Personal Property Tax Exemption
Sponsor/Originator: The Florida Legislature
What it would do:
This amendment would double the tangible personal property tax exemption and allow local governments to increase the exemption.
If You Vote Yes:
A “yes” vote means you want to double the tangible personal property tax exemption and allow cities and counties to expand the exemptions beyond that.
If You Vote No:
A “no” vote means you do not want to double the tangible personal property tax exemption and you do not want to allow cities and counties to expand the exemptions.
Click here to visit the Florida Division of Elections Background on Amendment 10 (including full text of the amendment)
Summary of Amendment (from Division of Elections site):
Proposing an amendment to the State Constitution to: (1) Provide an exemption from ad valorem taxes levied by counties, municipalities, school districts, and other local governments on tangible personal property if the assessed value of an owner’s tangible personal property is greater than $25,000 but less than $50,000. This new exemption, if approved by the voters, will take effect on January 1, 2013, and apply to the 2013 tax roll and subsequent tax rolls. (2) Authorize a county or municipality for the purpose of its respective levy, and as provided by general law, to provide tangible personal property tax exemptions by ordinance. This is in addition to other statewide tangible personal property tax exemptions provided by the Constitution and this amendment.
Arguments for:
Supporters say this amendment will give tax relief to small businesses and help stimulate the economy. They say it provides a way for local governments to offer further reductions in the business tax.
Arguments against:
Opponents say this amendment is part of a trickle-down economic theory that does not work. They say it will strip millions in tax revenue from local governments struggling to provide basic services.
Should the state’s tangible personal property tax exemption be doubled?
This proposed amendment is about taxes assessed on tangible personal property used in a business or to earn income. Furniture, fixtures, machinery, tools, shelving, signs and equipment are examples of property that is subject to the state’s tangible personal property tax.
By April 1 of each year, those owning tangible personal property that is used in a business or to earn income must file a return with the local property appraiser. Under current law, the first $25,000 of tangible personal property is exempt from taxation. If passed, Amendment 10 would boost that exemption to $50,000. It would also allow cities and counties to grant additional tangible personal tax exemptions beyond the $50,000 exemption.
The measure won unanimous approval in the Senate and near-unanimous approval in House. As with all amendments, passage requires the approval of 60 percent or more of the voters. If approved by voters, the added exemption becomes effective Jan. 1, 2013.
Fiscal Impact
Tangible personal property taxes are levied by counties and by cities. Citing information from the state Department of Revenue, a Florida Senate analysis said 7.6 percent of the total county property taxes levied in Florida in fiscal year 2011-12 were from tangible personal property taxes. The corresponding amount for cities was 6.1 percent. Those percentages would likely decrease if Amendment 10 passes.
Statewide, the additional exemption (from $25,000 to $50,000) proposed in Amendment 10 would reduce property tax collections across the state by a combined $61 million over its first three years, according to the state Revenue Estimating Conference, which calculates the anticipated fiscal impact of proposed amendments. The law also allows for counties and cities to expand the exemptions, but the fiscal impact of that proposed change cannot be estimated.
IF YOU VOTE YES:
A “yes” vote means you want to double the tangible personal property tax exemption and allow cities and counties to expand the exemptions beyond that.
IF YOU VOTE NO:
A “no” vote means you do not want to double the tangible personal property tax exemption and you do not want to allow cities and counties to expand the exemptions.
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In general, tax exemptions are a bad idea. Flat and equal taxes are better.
Absolutely. Rather than picking certain recipients, if necessary, the government should lower taxes across the board to stimulate growth. This is more fiddling around the edges rather than address the real problem.
This is a terrible idea and will cost property owners more or we will lose much needed services. I’m with Ernest on this exemption is a bad idea.
Agree with both Ernest and Richard.
Once again I must question, why amend the constitution? We elect these people to make the hard choices. If it is such a great idea take responsibility for it.
Less government is better. Government gets smaller if you take away their money.
If it helps small business owners, I am all for it.
I will vote ‘yes’ on this one.
No. With the personal property and homestead exemptions already.
This amendment is a very good thing for small business who are already burdened by to many government regulations and hidden taxes. The amendment will help put small business on a more equal footing with the big box stores. Small business will be able to take advantage of opportunities to buy in quantities without paying a tax penalty. It will help save their customers money and increase sales. PLEASE VOTE YES ON THIS AMENDMENT. Thank You. Steve B
Then reduce and eliminate the hidden taxes and oppressive regulations. Don’t add more tax exemptions and loopholes which complicate the process and put further strain on state budgets.
Just when I think I have decided, I read your post and I realize how easy all of this would be if we had ALL of the info, you know, loopholes, etc. We can’t trust the government like we want to until we get politicians with integrity. There aren’t many. So, this amendment makes me very nervous. There’s always a catch…. A bait and switch. Give ‘em an inch my friends…? Bad idea at this time.
this is an amendment for the FEW and not for the better of the MANY. Small business’s are getting a break by this law already $25K to $50k. comes off their total of what they pay in taxes. Want to increase business?? Put more money in the hands of the Customers to spend!!
Small business is having a hard enough time to be profitable. Lets face it, collectively small business is the backbone of our economy, nationwide. Give them a break and vote YES.
Kenn–I agree with you that we shouldn’t keep making law by amending the constitution. HOWEVER, this change appears to need an amendment (if we want it). If you follow the link that was provided (above) to the State web site, you will see that the current rules are IN the State constitution. The current $25,000 exemption is spelled out in the constitution. To change it, we have to go back into the constitution with an amendment. The legislature apparently has to get voter approval to change the constitution. So don’t vote against this amendment solely because you oppose making law through amendments.
This amendment will help small businesses which are struggling under the weight of too many taxes and a sluggish economy. PLEASE VOTE YES.
I agree with Ernest as well. The problem here is nothing is in place to fill the lost revenues this tax pays for. That means either services are cut or real estate tax is increased.
Smaller counties don’t have a way to easily replace these lost revenues and will have to turn to the state for help. A better solution, I’m told exists already is to allow each county to exempt any business they choose.
As someone else put it, this is like the federal government setting the Florida Sales Tax rate. It doesn’t work and will hurt many more than it will help. Jobs will be lost not added.
Question – if we vote yes on this, and I am in support of small business, where is the 61 million dollars that we lose over 3 years going to come from? You know the legislature isn’t going to say – oh well, 61 million down. They will say ok lets bilk (oops collect) it from…. what infrastructure item do you wish to do without so small business can get a tax break. Before I opened my business I knew the tax implications of doing so. It remained my (free will) personal decision on whether to open or not.
“Flat tax” applies to use tax (currently 6.00% at the State level) and income tax… And I’m all for that. The property tax is a good example of a tax that actually should go away. Until it does, a 25,000 or a 50,000 exemption is equally distributed. Ernest provides a solid argument against property tax relief for military and low-income seniors: those should be distributed to all or none.
First you have to earn the money to purchase the tangible property……which is taxed. Then you have to purchase the tangible property…….upon which you pay sales tax. Then you have to earn more money to maintain the tangible property…..which is again taxed.
Tangible property tax is directly related to extortion. Any means to reduce it or eliminate it is good.
I too am for small business and most small business don’t pay this tax, just look at the numbers. Approximately 300,000 business pay this tax. There are Approximately 2 million businesses in Florida. Doesn’t that mean that most of the businesses paying this aren’t so small.
I’m not saying I’m against cuts, but somewhere someone/something must pay or we will lose benefits. I saw recently that a large percentage of this tax went to schools. So how are we going to make this up. New businesses are not going to come here when schools can’t keep up with the cuts. Plus I think I just saw a survey that Florida is Fifth best state for business taxes, that seems pretty good yet new businesses aren’t coming here. I’m voting No.