General Revenue, Affordable Housing and Lake Okeechobee Clean Up Also Win

CS/CS/CS/SB 2430 and 1960 by Senator Al Lawson and Dan Gelber, as amended by Senator Cary Baker, close a state tax law loophole to allow collection of documentary taxes that are being avoided on certain real estate sales.  The law could generate more than $46 million in state revenue currently being lost through the tax loophole.

The bill that closes the loophole puts money into general revenue, for priorities such as education, and state trust funds and provides funding for the following important programs:

• Florida Forever Bonds - $50 million leveraged by $3.5 million annual debt service.
• Save Our Everglades Bonds - $50 million based on $5 million in annual debt service.
• Lake Okeechobee Pollution Clean Up – $3 million from the Everglades bonds.
• Affordable Housing – Miami-Dade Affordable House local option funds restored.

CS/CS/CS/SB 2430 and its House Companion CS/HB 283 by Rep. Lopez-Cantera seek to close the so-called Crescent opinion loophole allowing collection of avoided taxes.  The bill will generate $46 million in FY 2009-2010.

Collecting the revenue that some taxpayers are now able to avoid will help protect the state’s credit rating and provide desperately needed revenue during this extraordinary fiscal crisis.

Florida Forever and Everglades supporters are hopeful that the House will add the bonding appropriation in the House version of the bill, which in its current form is awaiting a House vote.

Legislators are to be commended for working to close the loophole to ensure fairness in the imposition of documentary stamp taxes.

For more information contact Janet Bowman or  Eric Draper.