House Bill 1535e1

                                      HB 1535, First Engrossed/ntc



  1                      A bill to be entitled

  2         An act relating to taxation; creating the State

  3         Tax Reform Task Force; providing for the

  4         appointment and organization of the task force;

  5         specifying duties; providing for reports;

  6         providing for the expiration of the act;

  7         providing an appropriation; providing an

  8         effective date.

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10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  The State Tax Reform Task Force;

13  membership; duties.--

14         (1)  The State Tax Reform Task Force is created to

15  examine the state's tax structure and make recommendations to

16  the Governor and the Legislature on how the state's tax

17  structure can be improved to ensure a stable revenue base that

18  is adequate to fund the needs of the state. The Senate Fiscal

19  Resource Committee and the House Finance and Tax Committee

20  shall provide administrative staff for the task force. The

21  task force shall consist of the following members, who must be

22  appointed by July 1, 2000:

23         (a)  Five members to be appointed by the Governor.

24         (b)  Four members to be appointed by the President of

25  the Senate.

26         (c)  Four members to be appointed by the Speaker of the

27  House.

28         (d)  The Chair of the Senate Committee on Fiscal

29  Resource at the time this act becomes law.

30         (e)  The Chair of the House Committee on Finance and

31  Taxation at the time this act becomes law.


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CODING: Words stricken are deletions; words underlined are additions.






                                      HB 1535, First Engrossed/ntc



  1         (f)  The Executive Director of the Department of

  2  Revenue or his or her designee.

  3         (2)  Each appointed member of the task force shall

  4  serve at the pleasure of the appointing official. A vacancy on

  5  the task force shall be filled in the same manner as the

  6  original appointment.

  7         (3)  The task force shall elect a chair from among its

  8  members.

  9         (4)  The task force shall hold its organizational

10  meeting by August 1, 2000, and thereafter shall meet as

11  necessary at the call of the chair at the time and place

12  designated by the chair. A quorum is necessary for the purpose

13  of conducting official business of the task force. The task

14  force shall use accepted rules of procedure to conduct its

15  meetings and shall keep a complete record of each meeting.

16         (5)  Members of the task force shall serve without

17  compensation but are entitled to reimbursement for per diem

18  and travel expenses incurred in the performance of their

19  duties as provided in section 112.061, Florida Statutes.

20         (6)  The task force shall examine the state's tax

21  structure to evaluate whether it is adequate for supporting

22  the continuing needs of the state. The task force shall

23  consider the following in its evaluation:

24         (a)  Standard principles of sound tax policy:

25         1.  Effectiveness.--Is the revenue raised by the system

26  stable and adequate to fund needed services or is it highly

27  sensitive to economic fluctuations in the short run? Does the

28  tax structure produce revenue that grows as the state's

29  economy grows; thereby enabling the public sector to grow

30  commensurately with the private sector?

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                                      HB 1535, First Engrossed/ntc



  1         2.  Efficiency.--Is Florida's tax structure easily and

  2  economically administered? Is compliance with tax provisions,

  3  by businesses and by consumers, simple and inexpensive? Does

  4  the tax system unnecessarily distort decisionmaking by

  5  consumers or business? To what degree can the tax burden be

  6  exported to tourists, the federal government, or out-of-state

  7  businesses? How does the state's tax structure interact with

  8  Federal or local tax structures?

  9         3.  Equity.--Is Florida's tax structure proportional or

10  progressive in its incidence among income groups? Are

11  individuals with similar incomes taxed uniformly? Are

12  Florida's taxes based on ability to pay?

13         (b)  How other states treat the same or similar tax

14  issues.

15         (c)  Whether the base of the tax system is as broad as

16  possible, so that tax rates and burdens are as low as

17  possible.

18         (d)  Whether tax exemptions are consistent with state

19  tax policy and the economic impact of each exemption.

20         (7)  In addition, the task force shall provide an

21  analysis of alternative tax sources.

22         (8)  By February 1, 2001, the task force shall submit

23  an interim report and, by February 1, 2002, shall submit a

24  final report to the Governor, the President of the Senate, and

25  the Speaker of the House of Representatives.

26         (9)  This section expires June 30, 2002.

27         Section 2.  The sum of $100,000 is appropriated from

28  the General Revenue Fund to the Office of Legislative Services

29  for the purpose of paying administrative expenses and funding

30  contracts necessary to carry out the provisions of this act.

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                                      HB 1535, First Engrossed/ntc



  1         Section 3.  This act shall take effect upon becoming a

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