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Hernando Today

Sales Tax Revenues Down, Legislators Say

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By TONY HOLT

Published: July 23, 2008

BROOKSVILLE - The property tax debate rages on and one local legislator told a room full of business people Wednesday where he stood.

"The best government can do right now is decrease your (tax) burden," said Rep. Rob Schenck, R-Spring Hill.

Schenck was the guest speaker during the monthly breakfast meeting held by the Greater Hernando County Chamber of Commerce. He discussed the upcoming budget and suggested residents should brace themselves for more significant cuts in spending.

This year, many of those cuts came out of health and human services and education. The budget for 2008-09 was $66 billion.

The state budget is reliant on the sales tax. Local governments largely depend on property taxes.

Legislators predicted another $2 billion decrease earlier this year, but sales tax revenue has been below the preferred level by approximately $100 million per month, Schenck said.

That means the cuts for next year's budget are likely to be significantly more than expected.

Meanwhile, voters will have the opportunity to lower their property taxes by more than one-third this Election Day.

During the question and answer portion of his talk, the former county commissioner discussed the property tax reform amendment currently in the works.

On Tuesday, the Florida Association of Realtors announced it would launch a grassroots campaign to urge the passage of Amendment 5 in November. Schenck also will be pushing for it.

He said the "nexus" of the amendment is that property taxes will no longer go toward the school system. As a result, homeowners would save approximately 35 percent in property taxes if voters approved the amendment.

But legislators would have to determine how to replace that money.

"It tells the Legislature (they) will need a different way of paying for that," Schenck said.

For it to pass, voters must approve it by at least 60 percent.

Opponents of the amendment suggest it would lead to thousands of layoffs among school employees across the state.

Last year, voters approved Amendment 1, which saved homeowners approximately $240 annually in property taxes.

Hernando County is currently in a recession. Economists blame it on the decline of the housing market. They think the area is overbuilt with too many homes, many of which still have not been sold. It will take several months to lower the inventory of available houses, they said.

While a county commissioner, Schenck said he warned against the local economy becoming too reliant on the housing market.

"The county's economy cannot depend solely on construction," he said. "It's dangerous … There are too many highs and lows."

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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