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Florida Constitution Revision Commission

PUB 700283: Taxation by Loyal Millett

ARTICLE VII: FINANCE AND TAXATION, Section 1. Taxation; appropriations; state expenses; state revenue limitation.

SECTION 1.Taxation; appropriations; state expenses; state revenue limitation.
  1. No tax shall be levied except in pursuance of law. No state ad valorem taxes shall be levied upon real estate or tangible personal property. All other forms of taxation shall be preempted to the state except as provided by general law.
  2. Motor vehicles, boats, airplanes, trailers, trailer coaches and mobile homes, as defined by law, shall be subject to a license tax for their operation in the amounts and for the purposes prescribed by law, but shall not be subject to ad valorem taxes.
  3. No money shall be drawn from the treasury except in pursuance of appropriation made by law.
  4. Provision shall be made by law for raising sufficient revenue to defray the expenses of the state for each fiscal period.
  5. Except as provided herein, state revenues collected for any fiscal year shall be limited to state revenues allowed under this subsection for the prior fiscal year plus an adjustment for growth. As used in this subsection, "growth" means an amount equal to the average annual rate of growth in Florida personal income over the most recent twenty quarters times the state revenues allowed under this subsection for the prior fiscal year. For the 1995-1996 fiscal year, the state revenues allowed under this subsection for the prior fiscal year shall equal the state revenues collected for the 1994-1995 fiscal year. Florida personal income shall be determined by the legislature, from information available from the United States Department of Commerce or its successor on the first day of February prior to the beginning of the fiscal year. State revenues collected for any fiscal year in excess of this limitation shall be transferred to the budget stabilization fund until the fund reaches the maximum balance specified in Section 19(g) of Article III, and thereafter shall be refunded to taxpayers as provided by general law. State revenues allowed under this subsection for any fiscal year may be increased by a two-thirds vote of the membership of each house of the legislature in a separate bill that contains no other subject and that sets forth the dollar amount by which the state revenues allowed will be increased. The vote may not be taken less than seventy-two hours after the third reading of the bill. For purposes of this subsection, "state revenues" means taxes, fees, licenses, and charges for services imposed by the legislature on individuals, businesses, or agencies outside state government. However, "state revenues" does not include: revenues that are necessary to meet the requirements set forth in documents authorizing the issuance of bonds by the state; revenues that are used to provide matching funds for the federal Medicaid program with the exception of the revenues used to support the Public Medical Assistance Trust Fund or its successor program and with the exception of state matching funds used to fund elective expansions made after July 1, 1994; proceeds from the state lottery returned as prizes; receipts of the Florida Hurricane Catastrophe Fund; balances carried forward from prior fiscal years; taxes, licenses, fees, and charges for services imposed by local, regional, or school district governing bodies; or revenue from taxes, licenses, fees, and charges for services required to be imposed by any amendment or revision to this constitution after July 1, 1994. An adjustment to the revenue limitation shall be made by general law to reflect the fiscal impact of transfers of responsibility for the funding of governmental functions between the state and other levels of government. The legislature shall, by general law, prescribe procedures necessary to administer this subsection.

ARTICLE VII: FINANCE AND TAXATION, Section 5. Estate, inheritance and income taxes.

SECTION 5.

Estate, inheritance and income taxes prohibited.

  1. NATURAL PERSONS. No tax upon estates or inheritances or upon the income of natural persons who are residents or citizens of the state shall be levied by the state, or under its authority., in excess of the aggregate of amounts which may be allowed to be credited upon or deducted from any similar tax levied by the United States or any state.
  2. OTHERS. No tax upon the income of residents and citizens other than natural persons shall be levied by the state, or under its authority., in excess of 5% of net income, as defined by law, or at such greater rate as is authorized by a three-fifths (3/5) vote of the membership of each house of the legislature or as will provide for the state the maximum amount which may be allowed to be credited against income taxes levied by the United States and other states. There shall be exempt from taxation not less than five thousand dollars ($5,000) of the excess of net income subject to tax over the maximum amount allowed to be credited against income taxes levied by the United States and other states.
  3. EFFECTIVE DATE. This section shall become effective immediately upon approval by the electors of Florida.

ARTICLE VII: FINANCE AND TAXATION, New Section.

Catchline: Sales tax.

(a) STATE SALES TAX. There shall be levied by the State, on the purchase of tangible personal property, including the mail order purchase of tangible personal property, a sales tax at the rate of seven percent (7%) of the purchase price of each article or item of tangible personal property.

(b) LOCAL SALES TAXES. The counties, the municipalities, and the public school districts may each levy a sales tax on the purchase of tangible personal property, including the mail order purchase of tangible personal property.

1. The rate of the sales tax levied by the counties shall not exceed the rate of two percent (2%) of the purchase price of each article or item of tangible personal property.

2. The rate of the sales tax levied by any municipality shall not exceed the rate of one percent (1%) of the purchase price of each article or item of tangible personal property.

3. The rate of the sales tax levied by any public school district shall not exceed the rate of three-fourths of one percent (0.75%) of the purchase price of each article or item of tangible personal property.

(c) APPLICABILITY. The provisions of subsections (a) and (b) of this section shall only apply to the purchase of tangible personal property, including the mail order purchase and delivery of tangible personal property, within the State.

ARTICLE VII: FINANCE AND TAXATION, New Section.

Catchline: Gasoline taxes.

(a) STATE GASOLINE TAX.

1. There shall be levied by the state a gasoline tax upon gasoline fuel that is used to propel motor vehicles, boats, and aircraft.

2. The rate of the state gas tax shall not exceed thirty cents ($0.30) for each gallon of gasoline fuel.

(b) STATE DIESEL FUEL TAX.

1. There shall be levied by the state a diesel fuel tax upon all diesel fuel.

2. The rate of the state diesel fuel tax shall not exceed forty-five cents ($0.45) for each gallon of diesel fuel.

(c) RESTRICTIONS.

No county, municipality, public school district, or any other taxing jurisdiction, other than the state, shall levy any taxes upon gaoline fuel and/or diesel fuel.

ARTICLE VII: FINANCE AND TAXATION, New Section.

Catchline: Cigarette, tobacco, and alcohol taxes.

(a) STATE CIGARETTE TAXES.

1. There shall be levied by the state an excise tax on each package of cigarettes, as follows:

A. For each package containing not less than two, nor more than ten cigarettes: no less than seventy-five cents ($0.75).

B. For each package containing not less than ten, nor more than twenty cigarettes: no less than one dollar and twenty cents ($1.20).

C. For each package containing twenty-five cigarettes: no less than one dollar and fifty-five cents ($1.55).

2. The excise tax and rates under this subsection (a) shall apply to electronic cigarettes.

(b) STATE TOBACCO TAXES.

1. For the purposes of this subsection (b), tobacco shall be labeled under the following categories:

A. Chewing tobacco.

B. Pipe tobacco.

C. Roll-your-own tobacco.

D. Snuff.

E. Large cigars.

F. Small cigars.

2. There shall be levied by the state an excise tax upon the aforesaid categories of tobacco, as follows:

A. For each package of chewing tobacco, pipe tobacco, roll-your-own tobacco, and snuff: no less than sixty cents ($0.60).

B. For each individually-packaged large cigar: no less than eighty-two cents ($0.82).

C. For each package of large cigars: no less than one dollar and twenty-five cents ($1.25).

D. For each individually-packaged small cigar: no less than sixty-five cents ($0.65).

E. For each package of small cigars: no less than ninety-seven cents ($0.97).

(c) STATE ALCOHOL TAXES.

1. There shall be levied by the state an excise tax upon alcohol as follows:

A. Beer, Cider, and Malt Beverages: no less than one dollar and thirty-five cents ($1.35) for every one gallon of beer, cider, and malt beverages.

B. Wine: no less than two dollars and five cents ($2.05) for every one gallon of wine.

C. Liquor and Distilled Spirits: no less than seven dollars ($7.00) for every one gallon of liquor and distilled spirits.

2. There shall be levied by the state an individual drink tax on the sale of each individual drink as follows:

A. Beer: no less than seventy-seven cents ($0.77).

B. Wine: no less than one dollar and ninety-three cents ($1.93).

C. Liquor and Distilled Spirits: no less than three dollars ($3.00).

(d) RATES OF TAXES.

The rates of the taxes established under this section may be raised by the legislature, but shall never be less than the minimum rates herein provided.

(e) RESTRICTIONS.

No county, municipality, public school district, or any other taxing jurisdiction, other than the state, shall levy any taxes upon the cigarette, tobacco, and alcohol products listed under this section.

ARTICLE VII: FINANCE AND TAXATION, New Section.

Catchline: Real estate transfer taxes prohibited.

Neither the state, nor any county, municipality, public school district, or any other taxing jurisdiction established by law, shall impose a tax, fee, or other assessment upon the transfer of any interest in real property.