Amendment 5 proposal draws cheers, jeers

Amendment 5 proposal draws cheers, jeers

In just a couple of months, Florida voters will head to the polls not only to elect a president but to vote on Amendment 5.

If passed, the controversial Amendment 5 is supposed to give property owners a big tax break, cutting bills by at least 25 percent. But how much will it cost to do that is not clear.

If passed on the November 4 general election, the constitutional amendment would eliminate all property taxes that pay for schools. The Legislature would be required to recoup those revenues by either ending some sales tax exemptions, increasing the sales tax by a minimum one-cent increase, budget cuts or seeking other revenue alternatives.

Without the school property tax, opponents of the measure say Florida's education system would lose an estimated half of its total funding, or between $8.9 billion and $11.1 billion, when the amendment took effect in 2010. Amendment proponents plan to compensate about $4 billion of that with a sales tax increase from 6 cents on the dollar to 7 cents. The other $4 billion, they say, could be collected through repealing tax exemptions.

What could that mean for the average Floridian?

Well, one example of a sales tax exemption that would likely end if the amendment passes is on funerals. Currently funerals are exempt from sales tax. An $8,000 funeral would then have a $562 tax added on.

Advocates of the amendment have said they could achieve sufficient revenues just by repealing exemptions on items such as feed and skyboxes at stadiums.

Governor Charlie Crist has thrown his support behind the plan. "I think it could be a significant stimulant for Florida's economy," said Crist.

A 60 percent majority vote is needed to make the amendment law. But before Amendment 5 gets to the ballot, the amendment must overcome a lawsuit, brought by a coalition of teachers, school boards, businesses and farm groups who oppose the measure. A hearing is set for this month.