Title: State and Local Taxation Committee Report of Chamber Subcommittee on Constitutional Revision
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Title: State and Local Taxation Committee Report of Chamber Subcommittee on Constitutional Revision
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Language: English
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Spatial Coverage: North America -- United States of America -- Florida
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Abstract: State and Local Taxation Committee Report of Chamber Subcommittee on Constitutional Revision
General Note: Box 10, Folder 3 ( SF-Taxation-Constitutional Revision - 1966 and 1967 ), Item 8
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
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Bibliographic ID: WL00002154
Volume ID: VID00001
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STATE AND LOCAL TAXATION COMMITTEE

REPORT OF CHAMBER SUBCOMMITTEE ON CONSTITUTIONAL REVISION

ARTICLE VIII, SECTIONS 10, 11, 12 & 13


The Chamber Subcommittee met at 1:30 P.M., October 25, 1967. Members
present were:

L. M. Blain
Winn P. Rash
Leon D. Howell
B. H. G. Kistner

Section 10. PLEDGING CREDIT

Section 10 authorizes governmental entities to use taxing power
or credit to aid corporations, associations, partnerships and persons,
but, such aid is limited.

The Senate version limits this aid only to port authorities
"operating a maritime port or an airport to issue and sell industrial
revenue bonds" for necessary capital projects for port authority
purposes. These bonds must be payable solely from funds derived
from revenues.

The House version is not as restrictive and will permit the
legislature to authorize local government entities to use and sell
revenue bonds to finance projects which the legislature "has deter-
mined to be for a public purpose". These bonds must be payable
solely from revenues derived from the project but may be authorized
even though the capital projects may be leased or alienated in whole
or in part to private corporations or individuals, provided that at
the time of issuance the interest on such bonds is exempt from
Federal income tax. (In other words, certain defense installations
would probably qualify such as the proposed Litton project.) Both
the Senate and the House versions provide that where any such pro-
perties have been acquired through this method and are then occupied
or operated privately, they shall be subject to taxation to the same
extent as privately owned property and operations.

Section 11. STATE BONDS

The Senate and House versions on Section 11 are substantially
different. The Senate version would allow general obligation bonds
(pledging the full faith and credit of the State) only upon approval
by a majority of the votes cast in a State election.

The House version would authorize such general obligation bonds
to be issued upon approval by resolution passed by three-fifths of
each house of the legislature. However, the House puts a limitation
on this method of issuance of general obligation bonds, limiting


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the issuance of any one fiscal year as well as placing a limitation
on the aggregate amount of State bonds then outstanding. There is
a further limitation that they may not be issued to finance any part
of the State highway system.

Both the Senate and House would allow the issuance of revenue
bonds without a vote of the electors.

There are some other variations but generally, this covers the
position of both chambers.

The legislative subcommittee recommendation generally follows
the House version but is more restrictive and more easily understood.
It allows the issuance of general obligation bonds if authorized by
Statute passed by three-fifths vote of the membership of each house
within two years prior to the issuance of the bond. It limits the
amount of such bonds to be issued in any one fiscal year and limits
the aggregate State bonded debt. This probably will have the practi-
cal effect of giving the Governor veto power where the House version
was independent of action by the Governor.

Another provision would allow general obligation bonds without
a vote of the electors where the bonds are additionally secured by--
tax revenues pledged pursuant to a schedule contained in the
Constitution. (The chamber subcommittee did not have this schedule
before it but this appears to be referring to what has been referred
to as Article XII containing carry-over Articles and references to
the Constitution of 1885, as amended.)

The legislative subcommittee recommended that revenue bonds may
be issued by the State or its agencies without a vote of the electors
only to finance the cost of necessary capital projects for State
purposes and where payable solely from funds derived from sources
other than State tax revenues or rents or fees paid from State tax
revenues.

Section 12. LOCAL BONDS

The House and Senate appear to be in agreement on this Section
which would allow local government entities to issue general
bonds payable from ad valorem taxation only when approved by tax
paying freeholders.

The legislative subcommittee recommended a subsection reported
to be consistent with the House and Senate philosophy authorizing
revenue bonds without a vote when payable solely from funds derived
from sources other than ad valorem tax revenue or fees and rents
paid from ad valorem tax revenue.

Section 13.- RELIEF FROM ILLEGAL TAXES

This section provides that no Court shall grant relief from the
payment of any tax that may be illegal or illegally assessed until
payment of all taxes which have been legally assessed upon the pro-
perty of the same owner. Your chamber subcommittee is not sure
just what is sought to be accomplished by this section.


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