The URL can be used to link to this page

LTC 080-2010 Senate Bill 2420 - Taxpayer's Bill of Rightsm MIAMIBEACH _~. : ,- OFFICE OF THE CITY MANAGER YOIa BAR I ( F;~ 2; ~~+ NO. LTC # oso-ZOio LETTER TO C~~MMISSI.c~~ ~_ 1. t' :.LE'r~rs :; r i lLE. TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: March 9, 2010 SUBJECT: Senate Bill 2420 -Taxpayer's Bill of Rights The purpose of this LTC is to provide the Mayor and City Commission with Senate Bill 2420, also known as TABOR, or the Taxpayer's Bill Of Rights. This bill has been filed by Senator Mike Haridopolis, and has been referenced to five Senate Committees. There is no House companion bill filed at this time. This bill is a proposed amendment to the State Constitution, which will limit state and local government revenues and requires voter approval for new taxes and fees. This proposal restricts the growth of all local govemment revenues, not only property taxes, to an increase of no more than the combined rate of inflation and the rate of population change. Local government revenues are defined as taxes, fees, assessments, licenses, fines, and charges for services. It does not include bond proceeds, gifts, federal funds, pension contributions by employees, pension fund earnings, emergency reserve transfers, and property sales. Although the revenue from the proceeds of bonds is not included in the definition of revenues, debt service on bonds shall decrease the revenue limit by the amount of annual debt service. The proposal also,,requires that local governments must receive advance approval by atwo-thirds vote of the electors to impose a new tax, fee, assessment, or charge for services, or to incur multiple-year direct or indirect debt or other financial obligations without having adequate present cash reserves pledged irrevocably and held for payments in all future fiscal years. If you have any questions, or need additional information, please do not hesitate to contact me. JMG/HF/k~ Attachments (2) Print Format Florida Senate - 2010 By Senator Haridopolos 26-01510-10 SJR 2420 20102420_ 1 Senate Joint Resolution 2 A joint resolution proposing an amendment to Section 1 3 and the creation of a new section in Article VII of 4 the State Constitution to limit state and local 5 government revenues and require voter approval of new 6 taxes and fees. 7 8 Be It Resolved by the Legislature of the State of Florida: 9 10 That the following amendment to Section 1 and the creation 11 of a new section in Article VII of the State Constitution are 12 agreed to and shall be submitted to the electors of this state 13 for approval or rejection at the next general election or at an 14 earlier special election specifically authorized by law for that 15 purpose: 16 ARTICLE VII 17 FINANCE AND TAXATION 18 SECTION 1.Taxation; appropriations; state expenses~+_==- 19 -------- ---..__~_~~.:. 20 (a)No tax shall be levied except in pursuance of law. No 21 state ad valorem taxes shall be levied upon real estate or 22 tangible personal property. All other forms of taxation shall be 23 preempted to the state except as provided by general law. 24 (b)MOtOY vehicles, boats, airplanes, trailers, trailer 25 coaches and mobile homes, as defined by law, shall be subject to 26 a license tax for their operation in the amounts and for the 27 purposes prescribed by law, but shall not be subject to ad 28 valorem taxes. 29 (c)No money shall be drawn from the treasury except in 30 pursuance of appropriation made by law. 31 (d)Provision shall be made by law for raising sufficient 32 revenue to defray the expenses of the state for each fiscal 33 period. 34 ~fr}F~eeept-ea-prerse~ee} ~zereszz- .I ~~I ~ , ~ - - - 35 --Y - - -- 3 6 ~-.4hi M I F- I t r~ -_ Y___ ~, J 37 g~reavtir--~rerxd-izz t}zsratt}.+aeetsezx~greevt}z 38 3 9 ,~ 40 41 pettr~or-t}ze-}395-~9i}6 fsaea3--pear - - 42 ~, --- - - 43 - - - - - - - cted~ert}te 439-x9 9 5 f3aea~ yee ~ - - 44 ~~rme~~-rzzreme-ske~3~~,e G~rtC?'fltTZlC~ ~~ t}ze ~CgTa3etezre~rOSCe 45 -- - ----- '1 t 1 r- Il rr 'I ~ ---- N 46 47 t}ze-3~eg•zzzzzsxzg of t}ze fi~scez~-peer 48 azzv f'+ a - r It i ~- -- --- 49 50 ___-___-- _--- -.._--_-_~.. ___--_.__ .,r__~__~~ _.. .,~_.__.,.. ~~,y, .,~ 51 N 52 prero~re-keel bp-gexzerei~aov---~ti I - - 53 54 -;:.= _- ---- ---°i _ ~? ~r _f ~_~l. 1..._.,~ ..i ;?... ley: ~l~~u~~ ~.: .. 56 '-'-~ - - - - ' - t t I t I r. - - Page 1 of 5 http://www.lobbytools.com/tools/print. cfin?a=bills&b=text&sessionid=27&Bi11Num=2420&Bi11ID=2... 03/01 /2010 Print Format s7 58~i~c-cizrrel-reac~kizz~of b}ze 3~r}} - ----------- - 59 - - -`4erzJ~at~ete~erex:zxe'J`-zzieazze t•azeee fees-ri+-exz e', errs 60 e1 r - ----- --- - 'r y~ , 61 ~ r~xzeaaea-bregern-sra cetai,~~ ate~t•r geroerxxxi~exzt }}eaaeder, 62 63 64 - -- - -}xxxetr3~~ t}ze stxxte -- - 65 - rci-rirze+ faxxrn-`~, r',e f ~ , 1 la l l r h 66 67 r - --- - 68 a - - 69 ter-dtz}Y`-~~934--_preeeeela fz~em~-~•~~ 70 - e•texrxxe~ta prixfea - 71 - - - 72 , 73 aefzerr}-e~i~trset ge•rerxxsxzg 3~eeF=ea or 74 - om--tee-er-~•ieeax~-feea axze~ e1,~,~,~ ~ - - --- 75 , , - - 76 - -`ter-dtx}~}~91}$ Psx-tte~k?tt~t•xt~ei3c cc cis revue-rtex~ 77 - - 7 8 r ~~ 7 9 ar,'v e ~ ~ ~ - - 80 , 81 x„ -. a ~ -- - 82 State and local revenue limits. _- - 83 (a)DEFINITIONS.As used in this section, the term: 84 (1) Fiscal year-".means t_he applicable fiscal year for the --- -- 85 state o_r_a local government. 86 (2)"Growth" means an amount equal to__a governments 87 revenues collected in the 20.10-2011_ fiscal year multiplied__for 88 each subsequent fiscal__year by the combined rate of inflation 89 and rate__of population change. For school_distric_ts, enr_o__llment 90 changess_-shall be used in lieu of -__ _ __ population changes. 91 (3 )_"Local_government" means,a county, municipalityl, school 92 district, or special district that has the authority to_impose - - - _- 93 ad valorem taxes. Any municipal service taxing or benefit unit 94 of a county and any special district dependent to a county shall 95 be included in that county aoyernment. Any municipal service ___ - - - 96 taxing or benefit unit--of a municipality and any special 97 district dependent to a muncipality__shall be included in that _ - - _ _ -- 98 municipality,,.-The term__does n_ot__include_any special district 99 established at the request of or with the consent of all - -- -- 100 landowners in the district fo_r_the purpose of providing -- - - - 101 infrastructure or services to land located within the district. - _ _ _..- 102 (4) "Local- government- revenues-"_ means__taxes, feed - --- 103 assessments, lc_enses~fines, and charges for services imposed 104 by a local government on ndividual_s,_ businesses, or another 105 local government. However, the term does not include: proceeds _- - -- - 106 from the issuance of bonds, gifts, federal funds, collections - - 107 for another government, pension contributions by employees and -- - - 108 pension fund earnings, emergency reserve transfers, damage 109 awards- and pr_o_perty sales. 110 (5)"Rate of enrollment change" means the percentage change - - - 111 in each school districts student enrollment as_re~orted by--each - -- - 112 school .district. The stated_percentages__shall be established - - 113 annually in the manner prescribed~~enegal law, and__shall be -- 114 _based_on a comparison of t_he average of the school di_st_ricts 115 enrollment for the two most recent calendar years. __ 116 (6)"Rate of inflation" means the-percentage change in -the --- 117 Consumer Price Index for all urban wage earners and clerical - - 118 workers__for the south region,- or a successor index, for the __ 119 precednq_calendar year_as calculated by the United States 120 Department of Labor, Bureau. of Labor Statistics. The stated ____ -- 121 percentages shall be established annually in the manner Page 2 of 5 http://www.lobbytools.com/tools/print.cfin?a=bills&b=text&sessionid=27&Bi11Num=2420&Bil1ID=2... 03/01 /2010 Print Format 122 prescribed by general _law~nd shall be_based_on a„comparison of_ 123 the ayerage_of the Consumer Price _I_ndex_d_uring the_most recent 124 two consecutive calendar years. -- - - - 125 (7)"Rate of population change" means the percentage chafe 126 in_popula_tion within the boundaries of the state or a local - _ __ 127 government as estimated the United States Censu__s Bureau. The 128 stated percentages shall be, established annuall _ _~_n the. manner 129 prescribed by eneral law~_d_shall_be based_o_n a comparison of 130 the_averaae of the Census Bureau estimates for the most recent - _ _- 131 two consecutive calendar years ._ 132 (8)"State revenues" means taxes, fees, assessments, _ --- 133 licens~__fines, and char es__for services .,imposed bv,_the 134 legislature or executive_branch agencies on individuals 135 businesses, or a ences outside state government. However, the 136 term does not include:_proceeds from the issuance of bonds, - - 137 proceeds from the state lottery returned_as prizes, receipts of 138 the Florida. Hurricane Catastrophe Fund and Citizens Property - -- 139 Insurance_Corporation or their successor_entites, tuition and 140 fees_charged to students_by public universities and community 141 colleges, gifts, federal funds, collections for another 142 overnment,_pension contributions by__employees and pension fund - - -- -- 143 earnings, bud. eg t stabili_z_a_tion_f_u_nd transfers, damage awards, 144 and_property sales. 145 (b)STATE AND LOCAL REVENUE LIMIT.Except as provided in 146 this section, state revenues collected by the state and local -- -- - 147 government and revenues collected by_each local government for 148 a~fiscal year shall be limited to revenues collected in the - - - - 149 2010-2011 fiscal year plus_an annual adjustment for growth. 150 (c)PROPERTY TAX REVENUE LIMIT.The annual percentage 151 change in_each local 4overnments__property tax, revenue may not 152 exceed_proper_ty tax revenue_in the prior .calendar year .plus 153 annual local. rowth, ad-justed for__proper_ty tax_revenue changes 154 approved by vot_e_ of t_he_electo_rs of__the respective local 155 governments. 156 (d_~_REVENUE RELATING TO BONDS.Fiscal year revenue o_f the 157 state or a local government does not include the proceeds from -- - 158 the issuance of_bonds._HOwever,_ the debt service on bonds shall - - - 159 decrease the revenue limit_by_the .amount of_the a_nn_ual debt 160 service. __ _- 161 (e)VOTER_APPROVAL TO EXCEED REVENUE LIM__ITS.State and 162 local governments may not_mpose taxes, fees, licenses,_finest_ - --- -- 163 or charges fo_r services expected to exceed. the revenue limit, as 164 ~ro'eI cted_by the state and local__governments at the adoption of 165 their. respective budgets for the fiscal year. Revenue collected 166 in excess of the revenue limit may not be_spent without approval 167 of,_the maiority of electors residing within the boundaries of - - - - - 168 the applicable government. 169 (1)State revenue collected in any fiscal year in excess_of - -_ _ 170 the_revenue limit shall be transferred to th_e budget 171 stabilization fund specified in Section 1.9_(g) of _Article_III 172 until the fund reaches the maximum amount specified in that --- - - - -- 173 section. Additional excess revenue. shall be held in a separate - - _ - __ 174 cash reserve,. with such exc_e__ss revenue and any. investment income 175 thereon treated as revenue in the first or second fiscal year 176 after the collection of those revenues,_as prescribed by_general __ __ -- 177 law. 178 (2)Revenue collected by__a loca~overnment in excess of -- -- 179 the revenue limit in any fiscal_year_shall_be_ transferred to a 180 budget stabilization fund~_ i__f_ such fund. has been created by the 181 applicable local government, until the fund reaches a maximum of -- - 182 3 percent of the last completed fiscal Years revenue _ - -- 183 collection ._ Additional excess_reyenue, or revenue collected in 184 excess of the revenue_limit by a local government that does not 185 create a budget___stabilization fund, shall be held in a separate - - - - -- 186 cash reserve, with such excess revenue and any investment income Page 3 of 5 http://www.lobbytools.com/tools/print.cfin?a=bills&b=text&sessionid=27&Bi11Num=2420&Bi11ID=2... 03/01 /2010 Print Format 187 thereon treated as revenue in the first or second fiscal year - -- - --- 188 after the collection of those excess revenues~__as prescribed by _ __ _ 189 general law,. 190 (3)The legislature shall provide criteria for withdrawing - - -- - 191 funds from_budget_stabilization funds created by .local - _ -- 192 governments only _f or the. ur ose of covering revenue shortfalls - - _ 193 of the general_revenue fund or fo~roviding funding in an 194 emergency in_ which substantial harm occurs to--th~opulation or 195 to property within the boundaries of a local.. overnment, as 196 prescribed by general law, Expenditure of budget stabilization - - _ _. 197 funds for emergencv purposes shall require a declaration of a 198 _ _ - - - state of emergency by the Governor and a_two-thirds majority 199 vote_of the members of the legislature or governing body of a 200 local government by a recorded roll call vote._FUnds m_ay not be 201 withdrawn f_or_any pur ose_oth_er th_an_those specified in this 202 subsection. 203 (f)EMERGENCY TAXES. 204 (1)_Emergency taxes .may be assessed under conditions set 205 forth in this subsection. Emergency tax revenue shall be_-spent - -- - 206 only after emergency reserves are depleted. Revenues from -- - - 207 emergency taxes shall be refunded within 180 days after the 208 emergency_t_erminates if the revenues were not spent on the -- - -- - 209 emergencv. This__subsection does not grant any new taxina_~owers 210 and prohibits emergencv property taxes. 211 (2)Emergency taxes may not be levied unless the Governor 212 declares a state of emergency and the taxes are approved. b_y a - - --- 213 two-thirds__gote of the membership of each house of the 214 legislature or_governinq body of_,a local government. The vote of 215 each member of the legislature or governing_.body of the local - . __ __ 216 government mu_st_be recorded. 217 _(_3)An emergency tax that is not__approyed by a_vote of the 218 electors of a local government on the next election date 219 occurrinq_60 days or-more after the declaration shall terminate 220 on or__before t_h_e last day of the month in which the el_e_ction is 221 .held. 222 (4)As used in this subsection, the term "emergency" Goes. __ _ - -- 223 not___nclude economic conditions, revenue shortfalls, or__salary 224 and fringe benefit increases. 225 (g)REVENUE LIMITS FOR NEW.. LOCAL GOVERNMENT.LOCal 226 governments created after November 2, 2010,. shall be subject_to 227 this section, as prescribed_by__general law. -- - 228 (h)BALLOT ISSUE ,TO EXCEED A REVENUE LIMIT.A ballot issue -_ - 229 for authorization to_ exceed a revenue limit._must state the - --- 230 amount by which the state or local_gov_ernment proposes to exceed -- - 231 the limit in each fiscal year. The ballot issue must also state -- - - - - 232 the date on_which the authority to exceed a revenue limit 233 expires,_Such date must be the last day of the fiscal year ._ - - - 234 (i)REVENUE LIMIT ADJUSTMENT.The_legislature may provide 235 ~_general law for adjustments to revenue limits to reflect the 236 fiscal impact of the following events occurring after January_4,_ __ _ __ 237 2011_: 238 (1)A change__n federal or state law which increases or ---- 239 decreases state or local government__responsibility for the --- 240 funding of governmental functions; or - -- - 241 (2)A transfer of the _resppnsibility _to-fund a government - -- 242 function to the sta_t_e or a local government. _ _ -- _-- 243 (j)VOTER APPROVAL OF NEW REVENUE SOURCES.The state and 244 local governments must receive advance_approval_by a two-thirds -- 245 vote of__the_electors voting_on a measure in the state or local -- - -- 246 ~v_ernment to: 247 (1)Impos_e_a new tax, f_ee, as_se_ssment, or_char_ge for 248 services; or 249 (2)Incur mult~le-year direct or_ndirect debt or other 250 financial obligations. without having adeauat_e-.present cash -- --- 251 reserves pled~ed_rrevocably and held for_payments in all future Page4of5 http://www.lobbytools. com/tools/print. cfin?a=bills&b=text&sessionid=27&Bi11Num=2420&Bi11ID=2... 03/01 /2010 Print Format 252 fiscal years, except to refinance bonded debt at a lower 253 interest rate__or to add new emp_1_oyees_to a pension plan. ___ 254 (k)CONSTRUCTI.ON.This_section shall be interpreted in a - - 255 manner that reasonably restrains most of th~rowth of state and - _ - - - 256 local, aovernments. This section s~ersedes_,a~conflictina -- - - 257 rovisions of_the_State Constitution in effec~ror to_the 258 effective date of_this section. 259 (1)EFFECTIVE DATE.T_his section__shall _take effect upon 260 approval by the electors., During the .2011 regular session of the __ __ _ 261 1eg_slature,. the legislature shall adopt implementing -- 262 legislation having an _effective_date _of Julv_1, 2011. 263 BE IT FURTHER RESOLVED that the following statement be 264 placed on the ballot: 265 CONSTITUTIONAL AMENDMENT 266 ARTICLE VII, SECTION 1 267 ARTICLE VII 268 LIMITING STATE AND LOCAL GOVERNMENT REVENUES, VOTER 269 APPROVAL OF NEW TAXES AND FEES.This proposed amendment to the 270 State Constitution replaces the existing state revenue limit 271 based on Florida personal income growth with new state and local 272 government revenue limits based on inflation and population 273 changes. Property tax revenues are limited based on changes in 274 local growth and enrollment changes in school districts. 275 Revenues collected in excess of revenue limits must be deposited 276 in budget stabilization funds, used to reduce future taxes, or 277 refunded to taxpayers. 278 However, the amendment permits voters to authorize the 279 collection of revenues in excess of a revenue limit. The 280 amendment also permits the Legislature and the governing body of 281 a local government to approve taxes by a supermajority vote for 282 certain emergencies. 283 Lastly, this amendment prohibits the state or a local 284 government from the following without first obtaining approval 285 by a supermajority vote of the electors: 286 (1)Imposing new taxes, fees, assessments, or charges for 287 services; or 288 (2)Incurring multi-year debts or financial obligations 289 without adequate cash reserves. lobbytools~, Page 5 of 5 Generated on 03/01/10 by LobbyTools.com http://www.lobbytools.com/tools/print. cfin?a=bills&b=text&sessionid=27&Bi11Num=2420&Bi11ID=2... 03/01 /2010