Haridopolos forming group to defeat 'tax swap'

Encouraged by powerful business interests, Sen. Mike Haridopolos is forming a political committee aimed at defeating the property tax swap on the November ballot. The paperwork could be filed by the end of the week or early next week.

The group may be called Protect Florida's Future, which is the name Haridopolos gave a Web site attacking the plan.

Haridopolos, R-Melbourne, is slated to become Senate president in 2010 and would inherit the burden of replacing billions in school property tax revenue with a higher sales tax and other revenue. He contends there is no way to make it work without a massive tax increase.

He already tried to stop the plan from getting on the ballot, by firing off a series of letters to the Taxation and Budget Reform Commission, holding news conferences and a one-day public hearing. But the TBRC sent it to the voters anyway.

'Phooey' -- Troxler trashes TBRC

More tax breaks for a select few in Florida? Making sure that the state can give its tax dollars to the church?

Those are the big ideas for fixing Florida's tax structure?

Well, at least they're among the final ideas of the Taxation and Budget Reform Commission, which meets every 20 years to overhaul Florida's tax system.

Nuts. Phooey. Boo. (More here from columnist Howard Troxler)

Jeb: 'Activist jurists' no longer decide vouchers

Jeb Bush has released this statement on today's school voucher action by the Taxation and Budget Reform Commission:

"Nearly a decade ago, Florida created Opportunity Scholarships to empower parents with financial resources to give their children a quality education.  The program was based on the principles that parents know better than bureaucracies how to best educate their children and that providing a quality education to children in low income families was the best way to prevent a life-long dependence on government.

Since introducing accountability and school choice, Florida has experienced unprecedented rising student achievement in public schools.  Vouchers are one of the tools that spurred the turnaround. They provided needed options for students in chronically failing schools and created competition that improved low-performing public schools.

Win for Bush, TBRC approves school vouchers

Former Gov. Jeb Bush and school vouchers advocates scored a major victory this morning, when the Taxation and Budget Reform Commission approved a ballot proposal that would enshrine voucher protections in the state Constitution.

The plan addresses part of the constitution calling for a uniform system of free public schools and is part of a two-pronged effort to redeem Bush's Opportunity Scholarships. It had been defeated at an April 4 meeting but resurfaced through some procedural maneuvering that helped gain support for the property tax swap.

The vote was 19-6. Among the supporters: former Sen. John McKay, who was one of the opponents earlier this month. But McKay needed others to go along with his tax swap.

Oh, the drama ... TBRC tables vouchers

TBRC Chairman Allan Bense just decided to table until 8:30 a.m. tomorrow a voucher related proposal attacking a Supreme Court decision that tossed Jeb Bush's Opportunity Scholarships.

Critics noted the plan, CP 40, was not on the agenda, and only added by a two-thirds procedural vote. "I'm worried we're going to be known as the voucher commission, not the tax and budget reform commission," said panel member Darryl Rouson of St. Petersburg.

Finally, the 'tax swap' headed for ballot

[TBRC member Les Miller of Tampa congratulates John McKay after passage of the plan. Times photo |Scott Keeler]

By a 18-7 vote, the TBRC just approved the "tax swap" to eliminate most school property taxes for a higher sales tax and other revenue sources.

The plan, which would cut property taxes by an estimated 25 percent, now goes before voters in November. It needs 60 percent approval and then the Legislature would have to come up with a way to replace $9-billion more in lost property tax revenue for schools -- a feat critics says is impossible without imposing a services tax.

The outcome seemed to hinge on some trading, chiefly swap proponent John McKay throwing his backing behind a voucher plan that will be voted on tomorrow.

Internet tax proposal goes poof

The proposal aimed at getting sales tax from Internet and catalog sales was just withdrawn from consideration before the Taxation and Budget Reform Commission.

Randy Miller, who was pushing for the plan, said he has gotten assurances from legislative leaders that they will pursue the idea. Just not right away.

Miller, executive vice president of the Florida Retail Federation, said he got the attention he wanted and was retreating so as to not "clutter up our constitution."

It is the first in what could be several tactical moves during today's meeting as competing interests try to lock down support for ideas.

The tax swap: IT'S ALIVE

UPDATE 12:22 p.m.: TBRC Chairman Allan Bense has ruled that the wording change is technical in nature, not a substantial one. The commission, over the objection of Randy Miller and a few others, then voted to adopt the reworked plan from style and drafting.

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Voters will likely still get a chance in November to eliminate most school property taxes in favor of a higher sales tax under a plan that comes up for a final vote before a powerful commission today.

The plan was in jeopardy as recently as a week ago when the Taxation and Budget Reform Commission killed off another ballot question that would have capped all government revenue. "I was very disappointed," said Commissioner Patricia Levesque. "But I still believe we should have some property tax relief."

The so-called tax swap plan, which backers say would cut property taxes by 25 percent, already passed the tax commission once, 21-4. But that was a month ago. Since then it has gone through a "style and drafting committee" which inserted new language that may prove explosive today. (story here)

Mystery language appears in tax swap

With raging speculation over tomorrow's TBRC vote on the "tax swap," new language has appeared that carves out an exemption on potential services taxes for real estate transactions and intangible personal property, such as stocks and bonds.

The language (see it here, page 5) could be a bone to Taxation and Budget Reform Commission members who are on the fence about the plan. It has business lobbyists outraged, saying it is a substantial change to the original proposal that was approved last month.

But Patricia Levesque, a member of the TBRC's style and drafting committee, said the provision was in the original plan (CP02) and a similar one she offered (CP50). It got stripped out in an amendment, she said. "We didn't realize it had been dropped out," she said.

That's not going to fly with some tomorrow, however.

A property tax feast in the House

[Proponents of the 1.35 percent property tax plan meet this morning with Sen. Mike Fasano, R-New Port Richey, who has signed on as sponsor of the bill. Times photo | Scott Keeler]

Gearing up for an election year, the Florida House moved forward on several property tax bills today, including one to cap property taxes at 1.35 percent of taxable value. The proposal would effectively set millage rates at 13.5.

Rubio calls swap 'potential recipe for disaster'

House Speaker Marco Rubio says he has always viewed the revenue cap and tax swap as working in concert. But now that the cap has been killed by the Taxation and Budget Reform Commission, Rubio says the swap is "a potential recipe for disaster."

It's a marked difference from last month, when Rubio excitedly promoted the swap plan before the Taxation and Budget Reform Commission. "You're our last hope," urged Rubio, who appointed seven of the 25 members. "If you’re waiting on the Florida Legislature to cut taxes, it isn't going to happen."

But Rubio told reporters this afternoon that the swap must work with a cap on government revenue. Otherwise, governments could get creative in raising fees or taxes to get more money, he said.

Asked if the swap should be taken off the ballot -- a vote the TBRC will make later this week -- the Miami Republican said, "I'm very concerned there is a swap without a cap. If you're not going to do a revenue cap, you shouldn't do a swap."

Haridopolos ratchets up tax fight - on the Web

Sen. Mike Haridopolos has a new Web site attacking the "tax swap" proposal being considered by the Taxation and Budget Reform Commission. (see post below for his public hearing this morning on the plan.)

In one-sided fight, Haridopolos pummels 'swap'

Sen. Mike Haridopolos opened his hearing this morning on the proposed tax swap as if he were Paul Harvey. "I'll be the first to admit, it sounded great," he said of the plan to replace most school property taxes for a 1 cent sales tax increase and other revenue sources.

"Now the rest of the story ..."

And so Haridopolos proceeded to trash the proposal, saying it would result in the largest tax increase in Florida history. (see the jump for the details) The Melbourne Republican has been battling the Taxation and Budget Reform Commission for answers about the plan. Getting nowhere, he decided to hold his own hearing.

He cast it as a chance to hear from regular folks, but the room was packed with lobbyists who, like Haridopolos, abhor the idea of a higher sales tax and a services tax. "We believe the people have been sold a bill of goods," said Barney Bishop, president of Associated Industries of Florida. Carol Dover, of the Florida Restaurant & Lodging Association, said it would be "devastating" to the tourism economy.

Ken Pruitt: Good guy. But come on, man.

Click here to listen to that Ken Pruitt radio ad Buzz told you about yesterday.

The spot is straightforward in tone and says Sen. Pruitt has served well "for many years." But it carries the tacit accusation that Pruitt's stubbornness is to blame for the Legislature's failure to hear a plan to cap property taxes at 1.35 percent of taxable value. As Senate President, Pruitt has declared that his chamber will not take up major property tax measures this session.

Governor's Office: Rouson can serve 2 roles

Darryl Rouson was just introduced as the newest member of Florida House, having won the District 55 seat largely based in St. Petersburg. Rouson, a Democrat, is also a member of the Taxation and Budget Reform Commission and his dual roles have been in question.

But the Governor's Office says he can serve in both capacities, pointing out two provisions of the state Constitution: Article 2, Section 5, A and Article 11, Section 6, A1. The latter, for example, states that governor can select 11 of the 25 TBRC members, "none of whom shall be a member of the legislature at the time of appointment."

UPDATE 2:10 p.m.: Rouson was formally sworn in before the House. Joining him were his wife, children and other family. "So help me God," he stressed, ending the oath. "I will do my best to uphold the constitution, to serve the people of District 55."

1.35% cap, TABOR headed to House floor

UPDATE: The House council also passed a cap on local and state government revenue -- a Taxpayer Bill of Rights-like proposal that the Taxation and Budget Reform Commission wrestled with for weeks before failing to approve yesterday.

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The 1.35 percent property tax cap plan just passed the House Policy and Budget Council and is now headed to the full chamber.

"This citizen petition is going to be on the ballot in 2010," said Rep. Carlos Lopez-Cantera, the Miami Republican who sponsored the bill. "I believe it is incumbent upon us to give them the opportunity to vote on this two years early."

The plan would limit property taxes on any property -- homestead, snowbird, commercial, etc., -- to 1.35 percent of taxable value, or 13.5 mills. Lopez-Cantera said it would take government revenue levels back to 2006, and would save $5.9-billion next year.

Rouson still hoping to keep dual roles

Today, St. Petersburg's Darryl Rouson will be officially elected to the state House of Representatives. And that raises an interesting question: Can he still serve on the all-powerful Taxation and Budget Reform Commission?

Rouson, a Democrat facing a write-in candidate in today's District 55 contest, said Monday that he hopes to hold the post -- a position he has maintained for several weeks. Lawyers are trying to decide if he can be a dual office holder.

"It doesn't seem right to quit at the 12th hour," Rouson said, adding that he interprets the law as meaning you cannot hold two offices at the time of appointment. Gov. Charlie Crist named him to the TBRC last year, well before Rep. Frank Peterman was selected to run the Department of Juvenile Justice.

"I'll listen to folks. I want to be reasonable," Rouson said, munching on a turkey sub from Publix during a break of the tax commission. "But I want to finish the job I started."

Haridopolos throws gas on fight with TBRC

Rebuffed in his attempts to get the TBRC to hold more hearings on the tax swap, Sen. Mike Haridopolos is taking matters into his own hands. He just told the commission that his Senate Finance and Tax Committee will hold hearings on Friday.

The move clearly angered TBRC Chairman Allan Bense, who clenched his jaw, glowered at Haridopolos and rapped his pen on the desk. Bense has said there have been plenty of hearings leading up to last month's vote on the swap, which would greatly reduce school taxes for a higher sales tax, repealing some sales tax exemptions and other revenue sources. But Haridopolos, R-Melbourne, says the plan would not come close to replacing the lost revenue. (his prepared remarks are here )

TABOR-like revenue cap dies

A revenue cap is not headed to the November ballot.

The Taxation and Budget Reform Commission has just killed a weaker version of the cap which would have required two-thirds approval by local and state officials for any fee or tax. Proponents wanted a stronger cap, which tied revenue growth to population and inflation, but clung to hope today that the compromise plan would muster 17 votes.

It got 14.

"If you vote no today, you don't think government has a problem with spending," said commissioner Mike Hogan, the Duval County tax collector who sponsored the original proposal. "This is as good as we could get." His closing argument drew applause from the packed audience. But the vote also drew cheers.

Tax 'swap' in trouble?

John McKay's tax swap may be threatened if the tax cap goes down today. (and it did. see above)

Taxation commission Mike Hogan said he is going to change his vote because a 1-cent sales tax increase would not cover enough of the revenue shortfall. Hogan said it was not clear during debate that the increase would be limited to a penny.

He also said he views the swap and the cap as working in tandem -- a sentiment shared by Richard Corcoran and other TBRC members who supported the swap. Corcoran said he is not sure how he will vote when the swap comes up for a final vote April 24.

Bruce Kyle said there are outstanding questions about the swap and that "if the facts are borne out that my initial vote was wrong then I have no problem changing it. .. We’ll just have to see."

The swap passed 21-4 last month and was heralded by many as the most significant attempt at tax reform. It would greatly eliminate school property taxes for other revenue sources or budget cutting. Seventeen votes are needed to put something on the November ballot.

As one tax cap falters, another may rise

The TBRC may be headed toward approving a proposal that simply requires a two-thirds vote by local and state officials before creating or increasing any tax or fee.

The panel just advanced a stronger cap, which limited revenue collection based on population and inflation, but the 13-10 vote spells trouble when it comes up for a final vote. Seventeen votes are needed to place a proposal on the November ballot. (Julia Johnson and Bob McKee are absent.)

28 - 29 + 11 = Tax commission mess

Picking up where it left off last meeting, the Taxation and Budget Reform Commission is struggling to understand where the proposed TABOR-style revenue cap stands after another flurry of amendments.

It's too confusing to explain here but goes something like this (as explained by TBRC lawyer Dudley Goodlette):

We need to waive the rules in this one instance to substitute amendment 28 for amendment 14, which has been filed as an amendment to amendment 11. But since amendment 28 has been timely filed as an amendment to amendment 29, which may come up later in the discussion, amendment 28 should not not be withdrawn.

Chairman Allan Bense had enough. "We're losing," he said, raising his voice.

Florida Senate vs. TBRC

Sen. Mike Haridopolos bemoaned the McKay tax swap on the Senate floor and complained that the Taxation and Budget Reform Commission has ignored his two previous letters accusing them of putting on the ballot the "largest tax increase in history" without more consideration. He's sending a third letter today.

"It's such an important issue, especially when a non-elected body can place before the voters the largest tax increase in our state's history," said Haridopolos, who runs the Senate's Finance and Tax Committee.

Voters like revenue cap; Crist's approval down

Florida voters like the revenue cap and sales tax "swap" being considered by a powerful state commission, but little is known about the plans and support falls short of the 60 percent approval, according to a new statewide poll.

The poll, released this morning, also shows Gov. Charlie Crist's approval rating has dropped to its lowest point ever -- 59 percent. (He peaked at 73 percent last year.)

Even so, the ratings "remain the envy of most governors," says Peter Brown of Quinnipiac University Polling Institute. "The reason his numbers are lower is that they were so high to begin with and voter satisfaction with how things are going in Florida has plummeted."

The revenue cap is favored by 50 percent of voters, while 31 percent were opposed. Similar to a "taxpayer bill of rights" adopted in Colorado, it would cap state and local spending at inflation and population growth plus 1 percent. On Monday it faces a critical vote on the Taxation and Budget Reform Commission.

A wild ride for the taxation commission

Hilda Patterson was exhausted — literally shaking — late Friday afternoon after sitting through seven hours of discussion.

The bus was leaving for Spring Hill and Patterson, 74, had not gotten a chance to talk. "You ought to be ashamed of yourselves," she barked at Allan Bense, chairman of the state Taxation and Budget Reform Commission.

The moment captured the tension and disorder that pulsed through what was supposed to be the final significant meeting of the powerful citizen panel.

Bense apologized. And Patterson did get to speak in favor of a controversial plan to cap government revenue. But Bense's own frustration came through during a recess.

"These volunteer jobs are wonderful, aren't they?" he said, forcing a smile. (A look back at Friday's marathon meeting)

Let's see: Tallahassee or San Francisco?

TBRC member Roberto "Bobby" Martinez had enough. Moments ago he got up from his seat, grabbed his briefcase and left the Department of Transportation conference room.

It's that kind of meeting.

We kid. We kid. ... Actually, Martinez had to catch a plane to re-join his family in San Francisco. He said he did not think the panel would vote today on the highly controversial revenue cap, now in debate. Even if it does, Martinez said he would be among the "no" votes, saying the plan is well meaning but raises far too many questions.

Getting to Tallahassee was a real feat for the Coral Gables lawyer. He took a redeye from San Francisco to Miami, changed into his suit in the bathroom -- "Look," he said pulling up a pant leg, "I've still got my hiking socks on." -- then got on another plane to Tallahassee.

Martinez has three children, ages 9,11 and 13, on spring break from school.

Second voucher proposal fails by one vote

The Taxation and Budget Reform Commission just fell one vote short of passing a measure to further entrench school vouchers in Florida.

The plan would have addressed part of the state Constitution calling for a uniform system of free public schools and was part of a two-pronged effort to redeem former Gov. Jeb Bush's Opportunity Scholarships.

The vote was 16-9, and 17 are needed to put something on the November ballot. "This is a good day for Florida," said teacher union president Andy Ford. "The commission has taken a serious look at what they were about to do and they realized it was wrong."

Turning voucher votes into political attack ads

Last week's TBRC voucher vote is spilling into the election arena.

The Buzz has learned that the Florida Education Association has aired radio ads against three Taxation and Budget Reform Commission members who voted for the measure. They include Ken Wilkinson, Lee County property appraiser who is up for re-election, Mike Hogan, Duval County tax collector, and Bob McKee, Lake County tax collector.

Hogan said the ad encouraged people to call his office and complain. About 100 did, he said, but they were overwhelmingly on his side. "Blaine Amendment was an easy vote for me," he said. "Regardless of what we do, we're not setting up vouchers."

Mark Pudlow, teachers union spokesman, said the ads were "basically to let people know they are supporting vouchers. We think the issue went beyond the pale of this body."

No voucher conflicts for TBRC members

Seven members of the Taxation and Budget Reform Commission did not violate ethics regulations by voting for a voucher-related proposal, the lawyer for the panel said this morning.

Dudley Goodlette cited provisions that say a voting member must refrain only when they inure a special private gain or loss, and said other ethics guidelines are even more broad. The issue was raised in a letter from the Florida Education Association.

A second voucher proposal is up for discussion today.

Jeb Bush works to put TABOR over the hump

Jeb Bush and his protégé Marco Rubio, the speaker of the Florida House, have been contacting members of the Taxation and Budget Reform Commission urging a "yes" vote on the revenue cap. At last count, proponents had 16 votes -- one short of the 17 needed for passage.

The Buzz is they need Darryl Rouson to see their point of view that the TABOR-style cap is a vital reform to Florida's tax structure. Rouson said tonight he is undecided but "inclined" to vote no. He also said he had not heard from either of the influential politicians. That makes tomorrow's vote a certain cliffhanger.

The proposal was stripped bare by commissioner Mike Hogan earlier this week, but numerous amendments have been filed that could either strengthen it or make an intractable policy soup.

Taking aim at TABOR on eve of big vote

Casting it as a threat to democracy, liberty and everything else that's decent in Florida, a coalition against the proposed TABOR-style revenue cap staged a rally this morning outside the Leon County courthouse.

"Voters are justifiably angry, searching for the source responsible for making their quality of life more precarious than ever. We understand their anger. But this so-called taxpayers' bill of rights that ties the citizens hands is really a taxpayers' bill of wrongs," said Pembroke Pines Mayor Frank Ortis (pictured). "This state is on the verge of being in the toilet with their economy. This act could be a flush, a final flush, to make that happen."

The proposal, known as CP45, goes before the Taxation and Budget Reform Commission tomorrow. It appeared on the verge of defeat but commissioner Mike Hogan this week reworked the plan so that just the idea is put before voters in November. If passed, the Legislature would have to come up with the details.

Mike Hogan performs CPR on tax cap

Under heavy scrutiny, the TABOR-style revenue cap being considered by the Taxation and Budget Reform Commission appeared kaput a week ago.

But no property tax story is complete without a few twists. So perhaps it is no surprise that commissioner Mike Hogan has come up with Plan B: Put the concept on the November ballot and, if voters approve, let the Legislature work out the details.

"It became almost a tar baby of nuts and bolts," Hogan said of the watered down proposal. "Everybody kind of bought into the concept, but to get to the place it needs to be as a very succinct constitutional amendment, it just became unwieldy.

"So what we're doing is we've included some concepts that must be in there then we pass the ball to the Legislature. They put the meat on the skeleton."

The new plan will be discussed Friday. It would need 17 TBRC votes, then 60 percent voter approval in November.

Is the TBRC one big conflict of interest?

The Florida Education Association thinks it looks that way following last week's voucher-related vote by the Taxation and Budget Reform Commission.

In a letter to be delivered to Chairman Allan Bense tomorrow, the FEA's Andy Ford questions whether seven* of the 25 members should disclose conflicts of interest and not vote the voucher proposal when it comes up again and related one to be debated Friday.

For example, the letter notes that Julia Johnson and Susan Story serve on the advisory board of Step Up For Students, a voucher funding organization. And Darryl Rouson, as an active candidate for State House, got a $500 contribution from the president of Step Up.

Writes Ford: "Aside from the fact that the commission is exceeding its constitutional authority by considering educational policy issues beyond the scope of the commission's constitutional charge, it appears that these members  ... are disregarding the ethical standards established by the commission's rules and Florida law, as modeled by your own action in recusing yourself from voting on an issue which had the potential to benefit your business, and instead are proceeding to vote on these matters despite their conflicts of interest."

Boo, hiss for tax reform panel

Times columnist Howard Troxler argues that the Florida Taxation and Budget Reform Commission has not lived up to its once-in-20-years job of looking in-depth at Florida's tax structure. Beyond one sizable but questionable idea -- trading school property taxes for higher sales taxes -- the commission has preferred small-bore items and ideological pursuits (tax dollars to religious institutions), he contends, and is little better than having a "second Legislature." Read his column here.

A peppy campaign slogan, but then what?

UPDATE: Will Pruitt, another Republican in the race and brother of Senate President Ken Pruitt, tells us: "I signed that two months ago."

We just got a news release from Marlene O'Toole, a Republican candidate for House District 42, saying she had signed the Americans for Tax Reform Pledge to never vote for a tax increase.

"At a time when Florida's economy is struggling, I cannot believe how many elected officials are mentioning tax increases as a possibility," O'Toole said, seen here in a campaign photo with Gov. Charlie Crist (who has also signed the pledge*)

Oh really? Will the hopeful legislator buck House Republican leadership if voters approve the "sales tax" swap? The plan would require legislators to replace $9-billion in property tax revenue for schools with other funding sources, including a penny or more sales tax increase. Any comment, Speaker Sansom?

Tax swap skirts disaster, but questions abound

A style and drafting committee of the Taxation and Budget Reform Commission just finished discussing the tax swap proposal, and while subject to many questions, the plan was spared heavy blows some critics were hoping would keep it off the November ballot.

The plan, which would eliminate the required local effort for schools and replace with other revenue sources, including a sales tax, is certainly complex and that still poses a problem.

The committee wrangled with implementation language and how to make it read that school budgets will be held completely harmless, when the provisions (including a 5 percent assessment cap for non-homestead property) would go into effect and other concerns. It also adopted bill language from a nearly identical proposal sponsored by Patricia Levesque.

Commissioner John McKay, who first had the idea, summed up the worry: "I don't want to see us put ourselves in a position where we're changing so many words that someone could challenge our product in court and on that basis, invalidate it."

Haridopolos to TBRC: Show me the money

Sen. Mike Haridopolos, a skeptic of the McKay tax swap, has asked the Taxation and Budget Reform Commission to do a little homework.

The proposal to greatly eliminate school property taxes would require the Legislature to replace the estimated $9-billion or more in revenue. (Haridopolos says it's more like $11-billion.) But raising the sales tax by a penny will generate less than $4-billion, leaving lawmakers to raise additional revenue through eliminating sales tax exemptions, taxing services, creating new revenue streams or cutting the budget.

In a letter to the TBRC, Haridopolos asks commissioners who backed the plan to give "specific recommendations on how we offset the revenue lost from the elimination of the RLE," or required local effort. "I understand that the list you will provide will be nonbinding; nevertheless I believe your suggestions are a vital component of having an open discussion on this issue."

His deadline: April 10.

TABOR seems kaput

UPDATE: Adam Guillette, Florida director for Americans for Prosperity, says speculation about the proposal going down is bunk. "We think we're looking a lot better now than we were a few days ago." He said the strong public showing resonated with the commission and that the mixed feelings -- too strong, too weak -- are a good sign. "It seems like Commissioner (Mike) Hogan is doing a good job to the find the middle."

If the delayed vote on the revenue and spending cap was not evidence enough, Wednesday's Taxation and Budget Reform Commission workshop on the proposal seemed to shout: TABOR IS DEAD.

One by one, audience members (like the ones above) stepped up to the microphone and expressed support for the provision. But most of these proponents also said the plan (bureaucratically known as CP 45 and informally as a taxpayers' bill of rights) has been so weakened by exclusion-laden amendments that it has no pop left. Give it some teeth, they said.

Tax panel sends church-state fight to ballot

Delving into the weighty issue of church and state, the Taxation and Budget Reform Commission voted 17-7 for a proposal to remove language from the state Constitution that limits financial aid to religious organizations.

It was in many ways a victory for former Gov. Jeb Bush, a staunch champion of school vouchers that provided the backdrop for Wednesday's protracted debate.

Patricia Levesque's plan, now headed to the November 2008 ballot, would remove the long-held "no-aid" Blaine Amendment and replace it with the following: "Individuals or entities may not be barred from participating in public programs because of their religion."

Critics blasted the move it as unnecessary, outside the bounds of the commission, and accused proponents of using "scare tactics" that religious programs other than vouchers are under legal assault.

From Colorado, a cautionary tax tale

As the Taxation and Budget Reform Commission considers a mandatory government spending cap known as TABOR (for "Taxpayers Bill of Rights"), a self-described conservative Republican from Colorado is in Tallahassee urging Florida policymakers not to support TABOR.

Kristi Hargrove, a home builder and mother of four from Crested Butte, Colo., said the effects of the spending cap have been disastrous in her state, and that fees have skyrocketed as local governments scramble to find ways to fund services. Opposition to TABOR resulted in the tax cap being suspended for five years beginning in 2005, 13 years after voters inserted it into the state Constitution.

"We were fooled. We bought the sound bite, and it's hurt," Hargrove said in a meeting with House Democratic Leader Dan Gelber. "To see other states jumping into this quagmire, it makes me mad."

Hargrove was in the capital along with members of a D.C. group, the Center on Budget and Policy Priorities, which is traveling the country seeking to block similar revenue-capping measures from being implemented. "The idea of a formula is fundamentally flawed," said Robb Gray, the center's coordinator of special projects.    

TABOR vote put off, for now

The Taxation and Budget Reform Commission will not vote today on the controversial revenue and spending cap proposal known informally as TABOR, its chief sponsor told the Buzz late Tuesday.

"We're going to workshop it," said commissioner Mike Hogan, who is also Duval County tax collector. Speaking shortly before midnight, Hogan said he was exhausted after a day of working on the proposal and making at least six changes to a bill that has already been altered various ways.

Some of those changes -- including dealing long term bonds and hospital districts -- may need further discussion and how they relate to the overall objective, he said. "People have come up with different ideas and once you do that, things start falling in different directions. Sometimes the worst thing is the law of unintended consequences. I just want to be careful and cautious and give some time for feedback."

Hogan denied the delay is due to lack of support (17 of 25 TBRC members must approve). Noting that the Sunshine Law prevents him from talking with other commissioners, Hogan said people who have that freedom have reported support as low as 14 and as high as 20.

Sink calls proposed revenue cap 'near-sighted'

CFO Alex Sink has come out against the proposed revenue and spending cap before the Taxation and Budget Reform Commission tomorrow. Read her letter to Chairman Allan Bense here.

"The citizens of our state, many of whom are overwhelmed by the rising costs of living, seek pragmatic solutions. TABOR, however, is not the answer," Sink writes, using the shorthand version of taxpayers' bill of rights.

Tax protesters storm governor's office

About two dozen anti-tax crusaders filled Gov. Charlie Crist's office moments ago, demanding a face-to-face meeting. That did not happen. But they left a clear message behind: Amendment 1 is not enough.

"You said taxes would drop like a rock. I'm confused. I'm totally confused," said Angelo Garcia Jr., 45, of Miami. (He's center in photo. Audio here.)

Lt. Gov. Jeff Kottkamp said the governor is keenly aware of the burden of property taxes. "We've been working with the Legislature since the first day we took office," he said. "Last year, the Legislature passed the biggest tax cut in the history of Florida."

"That sounds very pretty. All that language is very pretty," Garcia shot back.

"Let me finish," Kottkamp said.

Rubio: 'It's not over and we're going to win'

Harnessing the emotion and demands of the hundreds of citizens seated before him, House Speaker Marco Rubio insisted on more property tax changes, pledging "It's not over, and we're going to win."

It was an extraordinary scene in the chamber -- a campaign-style rally replete with signs and matching anti-tax T-shirts and chants of "Rubio, Rubio, Rubio." Some mocked Gov. Charlie Crist, who famously promised to drop taxes "like a rock," while another sign read, "Senator Pruit (sic) you blew it."

Rubio called for the 1.35 percent tax cap plan, which he said will get a hearing in the House (and then likely fizzle out). And he insisted that the Taxation and Budget Reform Commission approve the revenue and spending cap that is up for discussion tomorrow.

The TBRC's next big fight

Having approved the "tax swap" last week, the Taxation and Budget Reform Commission will vote Wednesday on a proposal to limit revenue and spending at all levels of government - a concept generally known as a Taxpayers Bill of Rights.

And the lobbying is intense.

Mac Stipanovich is working against the proposal for the Florida League of Cities and fired off a 10-page letter that explores "Athenian" and "Mirage" interpretations of what constitutes new taxes and fees before concluding TABOR is "positively dangerous" and a "radical indictment of the efficacy of representative government in Florida."

David Biddulph of Americans for Prosperity provides 10 reasons why commissioners should vote for the plan. No. 1: economic prosperity. Biddulph asserts that in Colorado, which adopted TABOR in 1992, personal income growth has climbed as a result. "Should the Commission favor an amendment that is likely to improve Floridians' standard of living?"

Meek eyeing Darryl Rouson on class size vote

Darryl Rouson last week missed a key Tax and Budget Reform Commission vote on whether to ask Florida voters to loosen the state’s mandate to reduce class sizes. Considering the issue is likely to come back up Wednesday - one day after voters in state House District 52 decide whether Rouson, Earnest Williams or Charles McKenzie should replace Frank Peterman in the state House - Buzz couldn’t help wonder if he intentially avoided a controversial vote just before his Democratic primary.

Not at all, says Rouson, explaining he missed the vote to attend a debate. "I lean toward keeping things as they are,’’ he said of the class size amendment, but acknowledged he hasn’t made a final decision and is getting loads of calls and e-mails.

U.S. Rep. Kendrick Meek said he was alarmed to see Rouson miss that note and said the former NAACP head should remember how popular that amendment is in the district Rouson wants to represent.

Biz groups aim to torpedo McKay tax plan

Florida's top business groups got together today to plot ways to prevent the "tax swap" plan from reaching the November ballot, or at least minimize the possibility of a sales tax increase.

"The coalition feels strongly that proposal doesn't need to be put in the Constitution," said Jose Gonzalez, lobbyist for Associated Industries of Florida.

He said the Florida Chamber of Commerce, the Retail Federation and other groups are trying to persuade Taxation and Budget Reform Commission members to change their mind before the proposal comes up for a second and final vote next month. The coalition met today at the Florida Institute of CPAs office in Tallahassee.

House panels turns down $365M in tax revenue

Divided on party lines, a House council moments ago turned down Rep. Dan Gelber's proposal to end a corporate tax "loophole" and generate $365-million at a time of severe budget deficits.

Gelber, D-Miami Beach, was going after corporations that export earnings in Florida to subsidiaries in other states by leasing intellectual property. HB 1237 would have put $100-million toward higher education and $265-million toward reducing property taxes for schools.

No one in the room expected it to get past the House Government Efficiency & Accountability Council, with business interests casting it as a tax increase and paperwork nightmare. "Shall we bring out the grim reaper?" chairman Frank Attkisson joked before the 10-6 vote.

"The losers are the consumers," said Rep. Rob Schenck, R-Spring Hill. "The $365-million will be made up elsewhere." Some questioned whether the revenue figure was overstated, though that is what the Florida tax handbook estimates is lost annually.

Too little sunshine on tax panel?

Two members of the influential Taxation and Budget Reform Commission have publicly acknowledged discussing tax policy in an airport terminal -- despite the fact that the TBRC is bound by the Florida Government-in-the-Sunshine law. An attorney for the panel says the discussion was "inappropriate." Details here.

One man's tax reform quest

Monday's breakthrough vote to put a tax swap on the November ballot is largely a triumph of one man's tenacity.

Eight years ago, when John McKay became president of the Florida Senate, he declared open season on "illogical" sales tax exemptions that he said favored the rich over working people. The tax system kept Florida afloat with "chewing gum and baling wire," he said. (story here)

'Tax swap' headed toward ballot

House Speaker Marco Rubio shares a celebratory moment with TBRC member Patricia Levesque.

UPDATE: The proposal passed 21-4. Dissenting votes were cast by Barney Barnett, Mark Bostick, Randy Miller and Greg Turbeville.

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A tax swap appears headed to the November ballot.

After hours of debate, the Taxation and Budget Reform Commission is close to voting on a proposal to eliminate school property taxes -- which make up 25 or more percent of an overall tax bill -- in favor of a 1 cent sales tax increase and other revenue sources.

"The people grabbed relief on Jan 29. but they are still clamoring for reform, true reform," said commission member Darryl Rouson.

Passage would represent a victory for former Sen. John McKay, who first broached the idea, and House Speaker Marco Rubio, who attempted something similar last year only to get rebuffed by the Senate. "You're our last hope," Rubio urged the 25-member panel. "If you’re waiting on the Florida Legislature to cut taxes, it isn't going to happen."

A gold star for the TBRC

You know it's a big deal when Bruce Kyle shows up for a meeting.

Kyle, a member of the Taxation and Budget Reform Commission, has missed a majority of the full meetings, contributing to an overall poor attendance record for the all-important, 25-member panel. But with a critical day on property tax proposals, there is a full house. In the saddle for the first time is Richard Corcoran, the former top aide to House Speaker Marco Rubio. Corcoran replaced Alan Levine, who resigned due to work in Louisiana.

"It's a clear indication of the importance of this issue," John McKay said at the outset of remarks. The TBRC is still debating McKay's plan to replace school property taxes with other revenue sources, including a 1 cent sales tax increase. Supporters in the audience cheered when an amendment was adopted to reduce the school millage rate to 5 mills from 10 mills.

McKay's plan once seemed certain to fail, but there is a growing sense it could pass in amended form. "We're very close to historic property tax reform," Rubio told reporters as he briefly left the meeting.

$2-billion in revenue Republicans won't touch

More and more Floridians are buying shoes from zappos.com and flowers from proflowers.com.

And it's all tax free.

Proponents of collecting taxes on Internet sales say the state could rake in $2-billion annually and plug gaping holes in the state budget. But proposals to collect such taxes appear doomed again because too many Republicans consider them tax hikes, which won't fly in an election year.

"I think we're already overtaxed as is. I still have reservations about it," said Sen. Mike Haridopolos, R-Indialantic, who controls a Senate tax committee. (story here)

A gut check for the TBRC (and Marco Rubio)

For months, they have been cast as the wise elders who will sort out Florida's property tax problems and place a thoughtfully crafted proposal on the November ballot.

Today, the mythology surrounding the Taxation and Budget Reform Commission gets a reality check.

During an all-day meeting in Tallahassee, the commission will consider several plans to lower property tax bills. But the bar is high for passing a significant overhaul. And with the Legislature hopelessly fractured on reforming the system, the commission may be the state's last shot at dramatic changes for years.

"We are literally a vote away from putting the most meaningful property tax reform in the history of our state on the ballot," said House Speaker Marco Rubio who gets a second chance at a tax swap. "And I hope we don't let that opportunity pass us by." (story here.)

'1.35 percenters' plan bus trip to Capitol

Hoping dozens of fed-up homeowners will push the Legislature into action, backers of the 1.35 percent tax plan are planning a rally at the Capitol on March 25. At least three buses are already scheduled to leave from Miami-Dade at 2 a.m. in time for the afternoon event.

Advocates are gathering signatures to put the proposal on the ballot, though the earliest that can happen in 2010. But the Legislature could pass something this spring, in time for November 2008. "We want to show them they have the power to lower taxes," said organizer Gregorio Rodriquez.

Richard Corcoran will join TBRC

Richard Corcoran is back in the mix ...

The Buzz is he will join the Taxation and Budget Reform Commission, taking over for Alan Levine, who has told House Speaker Marco Rubio he can no longer make meetings because he's overseeing Louisiana's health care system.

Corcoran was a top aide to Rubio but left to run for state Senate. After a brief and bruising campaign against Charlie Dean and Dennis Baxley, Corcoran dropped out and returned to law practice. Dean won the seat formerly held by Nancy Argenziano, who is now on the Public Service Commission.

1.35 percent tax cap passes first hurdle

Proponents of the 1.35 percent tax cap said this afternoon that they have collected enough signatures for the petition to be reviewed by the state Supreme Court -- a key first hurdle toward reaching the ballot.

About 61,000 were needed for review, though the group Cut Property Taxes Now Inc. says it has more than 150,000. The Department of State Web site on Friday showed 73,010 valid signatures.

"This is all thanks to the hard work and dedication of so many Floridians across the state who are determined to see real and substantive property tax relief," said Lee Sullivan, the group chairman and former mayor of Panama City Beach (which, by the way, does not have property taxes.)

One cut the TBRC didn't expect

The Taxation and Budget Reform Commission is revered by some as a holy body, the wise elders who will figure out the state's woes and place "thoughtfully" crafted items on the November ballot.

But it's not too important to avoid the budget knife.

The TBRC could face cuts up to $700,000 under the Legislature's plan for the current fiscal year. "We're going to get whacked just like everyone else," Chairman Allan Bense said during this morning's meeting.

Amendment 1 does nothing for these people

Jan. 29 will be remembered as an extreme triumph for Gov. Charlie Crist, the day he beat the critics and proved how hungry people are for property tax relief.

But to record history accurately, Jan. 29 should also go down as the moment Florida's unfair tax system became more so.

Why? read here.

A cap with real bite

A 5 percent assessment cap for nonhomestead property may not be dead after all.

Twice Monday, the business-friendly Taxation and Budget Reform Commission considered amendments that would lower the 10 percent cap that voters approved as part of Amendment 1.

During last year's tax-cut negotiations, House Republicans sought a 5 percent cap but lost to the Senate and Gov. Charlie Crist. Some business interests argued the higher cap under A1 is meaningless because assessments are not generally expected to hit double digits in the foreseeable future. Homesteaders, of course, have long enjoyed a 3 percent cap known as Save Our Homes.

In steps the TBRC ...