We all knew that when Amendment #1 was passed by Florida Voters in January that it was only the beginning point of tax relief for Floridians.  That was clearly understood and we have been waiting for the next phase.  Well, it’s here and may not make us happy.

I will say right upfront that I am not the expert and that you should contact your legislators and government officials with governmental questions.  I think it would be very wise for all of us to keep up to date on the new Amendment #5 that will be on the November ballot.

Amendment #5 is being directly placed on the November ballot by the TAXATION AND BUDGET REFORM COMMISSION.  They have the power to place initiatives directly on the ballot.

This amendment would require the legislature to replace a portion of the property tax that goes to funding education with a different revenue source – a tax swap – from the following options:  (1) Repeal of sales tax exemptions which are determined not to advance or serve a public purpose (2) A 1% sales tax increase (3) spending reductions for other components of the state budget (4) Other revenues identified or created by the legislature.

If passed, the legislature will have to begin looking for ways to raise the revenue needed. Keep in mind that a Constitutional Amendment is permanent and can only be removed by placing it on the Florida Ballot for voters.  Our legislatures will be pressured to get funds where they can and voters will only be heard by speaking directly to their own legislators.

That is extremely important at this time because we don’t have any indication of the direction of the legislators.  They are free to choose any of the above options or all of them.

I personally have one fear.  In order to make a quick decision the legislature may consider a tax on services that seems innocent enough until you look at how many people will be affected and what it will cost service providers to comply with the law.  Times are difficult for the average citizen and for business owners.  We don’t need another tax.  We need State and Local Government to manage with what they have and cut programs and services that are not necessary so they can fund what is essential and important.

Watch out for Amendment #5 and learn what it will mean to you.  It is hard to imagine that it would be “good for the people”.  I am; however, open to a different logic if it proves good for the residents and business people of Florida.




By Martha Bullman
CEO of Realtor Association of Miami Dade