On WCOA's "Real News with Rick Outzen" Later this Morning

I'll be on "Real News with Rick Outzen" later this morning talking public safety budgeting for the upcoming year

I've been invited to appear on the morning drive's best and highest rated local news/talk program "Real News with Rick Outzen" later this morning.

I'll be discussing and recapping last week's BCC meeting and some topics sure to come up will be:

1.  Funding for ECFR

2.  This year's budget

3.  Finding a proper location for the D1 Medical Examiner's Office

4.  Public Safety budgeting for the upcoming year and potentially 3-years.

Ahead of our meeting this Thursday--this discussion this morning should be a good one.

Once I get the podcast back from Rick, I will post it here.

Mythology versus Reality on Sales Tax Referendum versus Higher Property Taxes to Pay for Fire......

Separate facts from mythology if you want to make a cogent argument against everyone sharing in the shouldering of a tax to pay for fire service

Some folks are already attempting to shoot holes through the idea of a sales tax based system for funding fire protection in Escambia County.  They are implying it would harm those who are poor and struggling to pay for food.

But sales taxes are not applied to groceries.  Groceries are exempt. To say otherwise is untrue.

Gas is also exempt from this particular sales tax.  (Don't get me wrong--each gallon of gas is LOADED UP with all kinds of Federal, State, and some Local taxes---but this particluar sales tax is not applied and would not be applied--so this change, in and of itself, will not make gas more expensive for poor people) To say otherwise is untrue.

Other necessary purchases that are subject to taxation that are important to all citizens, (wealthy/middle class/poor)-- such as back to school supplies or hurricane supplies--are frequently given sales tax amnesty periods where no state taxes are applied to applicable purchases.  So with proper planning--- even those sales taxes can be avoided by all consumers in Escambia County.

Yes--big ticket items like automobiles, appliances, furniture--yes these carry a sales tax burden.  But often these taxes can be rolled into the financing deal or a discount equal to sales taxes can be negotiated.

Yes--retail and big ticket purchases are subject to sales tax.  That means if someone is "POOR" and they spend, say, $5,000 a month on non-exempt retail purchases, the total additional sales taxes they would pay if this proposal for a half-penny moves forward by the voters, would be............insert sound of drumroll............   ($25 dollars extra).  (Most truly poor individuals won't even spend $5,000 per YEAR on cash money purchases subject to full taxation--when all exempt purchases they make are taken out of the equation.....)

Here's a couple of newsflashes:

1.  If you are spending $5,000  per month (equalling 60K Yearly) on sales tax applicable non-exempt retail merchandise you probably do not meet any rational definition of  "poor."

2.  If you still, somehow, feel as though you are "poor" and yet can afford to spend $5,000 per month

I'm Not Voting to Raise Property Tax Rates on Existing Escambia County Taxpaying Property Owners

If you're a taxpaying Escambia County property owner---pay attention to the meeting today.  Watch it closely.......

I've never once voted to approve increased year over year property tax rates on existing Escambia County Taxpaying property owners.  Not once in my 15 years in elected office.  And I'm not about to start now, either.

But this is exactly what staff will be asking us to do later this morning.  

They truly feel there is no choice and that they need 45 more career, paid firefighters and that the ONLY way to pay for this extra cost is to put it onto the back of Escambia County taxpaying property owners via a massive increase in the MSBU or the addition of an extra MSTU.  It's a tax increase they are proposing--make no mistake about it.

But here's why I won't/don't support that. 

Property owners are getting crushed right now with historic property insurance rates if not outright policy cancellation.  They are dealing with unprecedented, 40 year inflation on materials for maintenance and repairs of their properties.  If they are paying for services, they are paying rapidly escalating fees and costs as wage-push inflation is rippling through the economy like a Tsunami and forcing service providing purveyors to raise wages and then by extension, service call fees.  Example:  a one hour (or less) easy-peasy installation of a dishwasher is now officially over $200. (Was $99 or  FREE- included with purchase -just two short years ago).  Bleach for cleaning properties has increased a whopping 400% in the last year.  Yeah, 400%.  Everything is going up for everybody in this crazy inflationary environment (did I mention gas prices doubling, to historic high prices over the last year and a half?)---------so I will not let bureauracrats and staffers make the homeowners shoulder more tax burden as the average homeowner is hurting like never before thanks to fiscal dysfunction coming out of Washington DC. 

So no, I don't think struggling families that have purchased a home, or small mom and pop businesses who own property and who are battling this double-edged sword of inflation and employee wage pressure, should be hit over the head with another increase on their property tax bill.  (remember, they just got hit with a new tax the electorate approved for the Escambia Children's Trust).

There's another way, and a better way.

We have the ability, under Florida Statutes 212.055(8), to ask the electorate to approve the levy of an additional sales tax .5 percent or up to 1 percent for the specific purpose of providing fire service county-wide.  This would also, conveniently, compel us to eliminate the current $125 MSBU from current property owners.  Yes, you heard that right.  It would cut property taxes for Escambia County taxpaying property owners.  That's something I believe we could all support.

Additionally--it will make everyone pay toward the service.  Right now---a LOT of citizens do not pay direct MSBU or property taxes that support the fire service.  Out of state visitors pay nothing toward Fire Coverage and services---this funding source change would positively alter that paradigm and provide for a hefty percentage (potentially as much as 35-40%) of the total sales tax funding to be burdened by out of state visitors or those traversing the interstate who pay for goods and services while travelling through.  Like our LOST penny and like the School Board's half penny sales tax---it generates a consistent revenue stream with much of the revenue coming from non-residents.  It also captures revenue from those who make purchases but who currently pay no property taxes or MSBU for fire---like folks who work for Escambia but live in Pace and pay ZERO toward fire protection where they work.

Now, the naysayers will say it is regressive, and that it hurts poor people.  I'd simply say that for the poor this will be less burdensome than some espouse---as essential basics like groceries are already exempt from all sales taxes.  for other, taxable cash purchases a disadvantaged person might make--the hit of a half-percentage will be de minimus.  (if taxable purchases of $1000 are made monthly--the net effect of the levy of a half penny on that would be $5.00--if $2,000 is spent, it would be $10 additional for a month)  At this point I'd simply point out that if a "poor" individual is spending $1,0000, $2000, or $3000 monthly on retail or non-tax exempt purchases some (many? most?) might question whether or not such an individual is/was really poor?

Nevertheless--we can and will have those conversations when and if it becomes necessary.  And I will ask staff to explore this option and I hope to at least get two additional commissioners' support.

I will not cave in the the reflexive, easiest path of least resistance to simply add more to the MSBU on property owners.  Nope, especially if there is another way to do it better.  And I believe there is.  A tax that everyone pays.  Everyone.

What is "Raising Taxes?"

Here's why what some in the media call a tax increase is really NOT a tax increase, it is not us "Raising Taxes!" 

It is being reported today in the press that the Board of County Commissioners "Raised your Taxes" at last night's meeting.  This headline is inaccurate.  This headline is a misleading product of the TRIM (Truth in Millage) disclaimer the state dictates local taxing authorities like Escambia County use.

Here is the TRUTH:

We kept the total millage rate for all Escambia County Property Owners static--the same RATE as last year.  We did not RAISE the RATE--which in my opinion would have constituted a TAX INCREASE.  but we did not do that--we kept the rate static.  In 13 years in public office, I have never once -ever-voted to increase the year over year millage rates on Escambia County Taxpayers.  Never once.  I did not do this last night either.

We DID NOT raise the millage rate, or the amounts collected for Fire MSBU, the Sheriff's MSTU, or the Library MSBU.  All amounts are the same as last year's amounts.

But in the esoteric, weirdo world of how the legislature knee-caps local governments with their constant machinations--under this scenario only--the state considers keeping millage rates static while the tax roll increases as "raising taxes."

But I do not believe I raised taxes by the actions I took last night.

Here is why.

Consider these simple examples to illuminate the truth:

Scenario A:  Assume you made $100,000 in income in 2018 and the IRS taxed you at 36% and you paid $36,000 in taxes that year.  If in 2019 you made $125,000 and the IRS held your tax rate steady at 36%--and you paid a little more Income tax in 2019 due to the fact that your income went up--would you consider that situation as the "IRS raising your taxes?"  (here is a hint:  uh, of course not--you paid more, because you made more)

But better yet, though, ...ask yourself this:

Scenario B:  Assume you made $100,000 in income in 2018 and the IRS taxed you at 36% and you paid $36,000 in tax.  If in 2019 you had a bad year and only made $50,000-----but the IRS demanded the same amount of gross tax dollars from you that you paid in the previous year and therefore raised your TAX RATE to 72% so that you would, indeed, pay $36,000 as you did the year prior-----would you consider THAT a TAX INCREASE?  (here is a hint:  uh,  HELL YEAH!)

But guess what?  In the Twilight Zone of Tallahassee Bureaucratic Gobbledygook--Scenario A, if applied to the County and our millage rate--constitutes a TAX INCREASE  but scenario B---if applied to a county's millage rate increase year over year--would not be considered a TAX INCREASE!!  No joke, no kidding I am not making this up.  I can't make this stuff up.

And of course the media buys right into this, never looking past the TRIM notice, never digging

Escambia County School Board Cutting Property Taxes for 2011-2012

At Tomorrow’s special meeting of the School Board of Escambia County, the agenda will include setting proposed millage rates for the 2011-2012 budget year for Escambia County property owners.

For the typical property owner in Escambia County, the School Board Millage rate is responsible for the largest dollar amount on the overall tax bill.  The majority of the millage calculation formula is dictated to us from Tallahassee—so in most instances we are constrained in what rates we can, can’t, should, or must levy.

The good news for 2011-2012 is that this year our millage rates are going down.

Everything else locally is going up, gas, groceries, electricity, water—but your local school board tax rate is being CUT this year.

It may not be a huge cut, but it is a decrease.

Last year’s total school board levy                            7.860

This year’s total school board levy                            7.821

This special meeting begins at 5:00 PM Thursday, July 21^st at the Hall Center in room 160.