M
MN Maniac
Guest
Many of you will recall about 20 years ago when Florida passed the infamous "services tax." It basically extended the (then) 5% state sales tax to most services including radio advertising. This caused a huge backlash from radio, TV, newspapers, and others who would be directly impacted by the tax. In the end, the Florida Legislature repealed the services tax and replaced it with a 1% increase in the sales tax rate.
Since then, the legislature has been gradually repealing sales tax exemptions. Faced with a record budget deficit (and the unwillingness to cut spending), proposals for massive tax and "fee" increases have been introduced. Prevailing wisdom would suggest the legislature would not want to resurrect the advertising tax battle. However, there has been a bill introduced which would enact a new $200 fee on vehicles previously not registered in Florida. This is the old "Vehicle Impact Fee" under a different name. The same one that was ruled unconstitutional by the Florida Supreme Court 15 years ago. I never would have thought they'd want to repeat THAT battle, either. Basically, the state is desperate for money, anywhere they can get it. If they're willing to revisit the impact fee (along with doubling car tag fees and other massive increases), I'm guessing that taxing advertising and other services may also be on the table very shortly.
Since then, the legislature has been gradually repealing sales tax exemptions. Faced with a record budget deficit (and the unwillingness to cut spending), proposals for massive tax and "fee" increases have been introduced. Prevailing wisdom would suggest the legislature would not want to resurrect the advertising tax battle. However, there has been a bill introduced which would enact a new $200 fee on vehicles previously not registered in Florida. This is the old "Vehicle Impact Fee" under a different name. The same one that was ruled unconstitutional by the Florida Supreme Court 15 years ago. I never would have thought they'd want to repeat THAT battle, either. Basically, the state is desperate for money, anywhere they can get it. If they're willing to revisit the impact fee (along with doubling car tag fees and other massive increases), I'm guessing that taxing advertising and other services may also be on the table very shortly.
