Would the Preemption of Local Government Crash Tax Affect Traffic Safety in Your Community?

 

Would the Preemption of Local Government Crash Tax Affect Traffic Safety in Your Community?

The imposition of emergency vehicle crash response fees, also known as Crash Tax, has been a recent Florida trend tracked by OrdinanceWatch™. However, on May 1, 2009 the Senate approved Bill 2282 to prohibit charging fees for first-responder services. Will Governor Crist’s signature on this bill affect how fire, police and other rescue services are provided in your community? Proponents of the Crash Tax say it aids in recovering costs for material, equipment and labor for emergency response situations.¹ Others believe that citizens are already paying city and county taxes for these services and additional fees would equate to a tax increase. Should the Legislature be allowed to restrict funding sources for these critical services? If adopted, this bill could weaken the quality and quantity of trained workers in vehicle collision emergencies. Will driving your car or motorcycle become a more prominent safety issue? Would this affect your driving habits?

Brevard County, FL just adopted a resolution to increase EMS Billing Rates. The impact will result in an approximate annual revenue increase of $737,000.²

Madison County, is currently considering adoption of an ordinance to collect fees for emergency response in the County. However, if Crist approves SB 2282, that will preempt the adoption of this or any other County or Municipality mandates for Crash Taxes, effective July 1, 2009.³

Winter Haven in Polk County, FL is already preparing for Crist to sign SB 2282. They just adopted an ordinance to repeal their Vehicle Emergency Response Fee Ordinance that was adopted in June 2008. The City began collecting the fees in July 2008. As of May 2009, they have sent almost 2,000 invoices totaling to $63,169.35. The City will now plan to refund all Vehicle Emergency Service Fees that have been collected since July 2008.⁴

As personal and governmental budgets are tightening in these tough economic times, are increased fees for these services really the right answer to the ongoing funding crisis?  How does a local government ensure that these additional fees are collected?  Winter Haven’s City Commission noted that of the $63,169.35 in invoices sent, only $16,231.19 was actually collected.⁴ Imagine having to swipe your credit card at the scene of a crash or be denied emergency services.  Will this lead to property liens and increased burdens on homeowners.  The Crash Tax seems to raise more questions than provide answers.  What do you think?

The following are issues from the OrdinancWatch™ database relating to Emergency Response Service Fees:

• Bradenton, FL Tables Ordinance Regarding Service Fees for Deployment of Public Safety Services
• Brevard County, FL Adopts Resolution Regarding Increases to EMS Billing Rates
• Winter Haven, FL Adopts Ordinance Affecting Motor Vehicle Crash Emergency Response Service Fees
• Riviera Beach, FL Tables Ordinance to Establish Motor Vehicle Cost Recovery Fee for Costs Incurred by the Police in Responding to Accidents
• Madison County, FL to Continue Discussion of Ordinance to Collect Fees for Emergency Response

^{1. Senate 2282: Relating to emergency vehicle crash response fees.  (2009). Retrieved May 14, 2009, from The Florida Senate Web site: http://www.flsenate.gov/Session/index.cfm?Mode=Bills&SubMenu=1&Tab=session&BI_Mode=ViewBillInfo&BillNum=2606&Chamber=Senate&Year=2009&Title=%2D%3EBill%2520Info%3AS%25202606%2D%3ESession%25202009.}

^{2. “County Board Minutes and Records.” Brevard County Florida. 9 Apr. 2009. 14 May 2009 http://199.241.8.125/index.cfm?FuseAction=MinutesRecords.Home.}

^{3. Madison County Florida. 2007. 14 May 2009 http://www.madisoncountyfl.com/cd-commissioners.aspx?a=viewPost&PostID=2110.}

^{4. “Commission Agenda.” The City of Winter Haven. 11 May 2009. 14 May 2009 http://www.mywinterhaven.com/cc/commission_agenda.htm.}

Are Tourist Development Tax Increases the Answer to Reducing Revenue Competition in Florida?

Are Tourist Development Tax Increases the Answer to Reducing Revenue

Are Tourist Development Tax Increases the Answer to Reducing Revenue Competition in Florida?

Competition in Florida? The Tourist Development Tax deals with transient rentals and is governed by Florida Statute 125.0104. It has been nicknamed the “Resort Tax” or the “Bed Tax” because it is exclusively associated with renting living quarters for 6 months or less. ¹ In Florida the tax rate varies by county, but the cap is 6%. Revenues from this tax can be used for things like construction of tourist-related facilities, promoting tourism, and beach/shoreline maintenance. Anyone that “rents, leases, or lets for consideration any living quarters or accommodations in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, or condominium for a term of six months or less is exercising a taxable privilege. These taxes are to be charged by the person receiving the consideration for rent or lease at the time of payment for such lease or rental”.  ²

A recent trend seen by OrdinanceWatch™ is proposed increases to Tourist Development Taxes throughout the state of Florida. Tax rates vary by county depending on the county’s ability to levy certain taxes. Bay County, FL has just adopted ordinances to increase the Tourist Development Tax Rate and amend the Bay County Tourist Development Plan. The four-cent tax took effect on March 1, 2009. The five-cent tax will take effect April 1, 2009. ³

Leon County, FL has tried to reduce revenue competition by providing $1.2 million to the Council on Cultural Arts (COCA) for the past two years. The money provided to COCA was funded through the three-cent tourist development tax in the county. During the FY09 Budget Planning Period, proposals to increase the tax were discussed. Leon County plans to hold a public hearing on March 19, 2009 to discuss the proposed tax increase. ⁴

Would Tourist Development Tax increases harm or help your business? Do you think they are appropriate during times of recession? Please share your thoughts by commenting below. Here is a list of sample issues from the OrdinanceWatch™ Database regarding proposed Tourist Development Tax increases.

• Marion County, FL to Consider Request to Hold Public Hearing of Ordinance Affecting the Tourist Development Tax
• Miami, FL to Hold Discussion of Tourism and Bed Taxes
• Leon County, FL to Hold Public Hearing of Tourist Development Fifth-Cent Tax
• Bay County, FL Adopts Ordinances to increase the Tourist Development Tax Rate and Amend the Bay County Tourist Development Plan

^{1. Ingle, M. (2009). What is the Tourist Development Tax? Retrieved March 10, 2009, from the Walton County, FL Clerk of the Court Web page, Web site: http://clerkofcourts.co.walton.fl.us/default.aspx?id=40}

^{2. Florida Department of Revenue. (2009). Tourist Development Taxes. Retrieved March 10, 2009. Web site: http://dor.myflorida.com/dor/taxes/tourist_development.html}

^{3. Bay County, FL County Commission Ordinances. (2009). Increase to the Tourist Development Tax. Retrieved March 11, 2009 from the Clerk of the Commission. Web site: http://www.co.bay.fl.us/bocc/agenda.php}

^{4. Leon County, FL County Commission Ordinance. (2009). Proposed Increase to the Tourist Development Tax. Retrieved March 11, 2009 from the County Administrator’s Office. Web site: http://www.leoncountyfl.gov/bcc/index.asp}

Local Governments Combating Real Estate Fraud with Higher Transaction Fees

The collapse of the housing market has left many local governments around the country scrambling to handle the accompanying spike in real estate fraud cases. Few states have been hit as hard as California, which currently boasts eight of the ten worst projected housing markets for 2009.¹ The California Department of Real Estate has reported a significant increase in the number of real estate fraud cases statewide.² The increased case load has prompted several local governments in the state to approve new or increased recording fees on real estate transactions to combat fraud.

Stanislaus County recently approved an increase to such fees, in part due to the fact that the number of reported fraud cases there has tripled since 2006.³The

Local Governments Combating Real Estate Fraud with Higher Transaction Fees

Board of Supervisors approved an increase to the Real Estate Fraud Fee from two dollars to three dollars for virtually all real estate transactions filed in the county.

California reported the highest number of fraud cases in the country in the last quarter of 2008. The dollar value of the 4th quarter cases alone topped a billion dollars.⁴ The most commonly reported types of real estate fraud include home improvement scams, equity fraud, flipping, fraudulent loan origination and equity skimming. With the number of reported fraud cases expected to continue to climb in 2009, the number of local governments seeking to address the issue by imposing new or increased real estate transaction fees is likely to climb as well.

The following is a list of several other examples of local governments implementing real estate fraud fees to address budget shortfalls:

• Riverside County, CA to Hold Public Hearing of Resolution Authorizing Increase to Fees for the Real Estate Fraud Prosecution Trust Fund
• Orange County, CA to Hold Public Hearing and Consider Adoption of Recording Fee for Real Estate Fraud Protection Trust Fund
• Monterey County, CA to Consider Adoption of Resolution Regarding Real Estate Recording Fees
• Alameda County, CA to Hold Public Hearing of Recording Fees for Real Estate Fraud Investigation and Prosecution
• Santa Clara County, CA to Consider Resolution Authorizing Increase in Recording Fees to Fund Investigation of Real Estate Fraud Crimes

1. ^{http://www.calitics.com/showDiary.do?diaryId=7730}
2. ^{http://lansner.freedomblogging.com/2008/09/27/insider-qa-told-real-estate-fraud-is-on-the-rise/3898/}
3. ^{http://www.ordinancewatch.com/ow_blog.cfm?user_id=7746&id=12475}
4. ^{http://blownmortgage.com/2009/02/09/mortgage-fraud-increases-in-2008/}