UF00083585_00004.pdf

UF00083585_00004.txt

UF00083585_00004_pdf.txt

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mum Ltozsumvz 9911mm natures,

outrun PLAZA amL. Mumffwum. mean a. 1960



Senator Ton Adana. Chair-nan of the Florida axialative Interim
Co-Iittaa on Finance and taxation. called the hearing to order at
10:00 o'clock A. H. and ualcoud all thoaa in attendance.

Orlando Mayor Robert 8. Carr. Senator John Sutton. Repraaanta-

tiva Beth Johnaon and Caprauntative Jack Inn-an alao welcomed
the group to Orlando.

Senator Button in turn introduced lira. llalan Bennett. 'l'an
Aaaaaaor of Orange County; Chairman of the Board of County
Connie-lone". Comiaaionar A. 0. Nina. Clark o! Circuit Court
Arthur Nowell. John Cooper of southern Bell Telephone Conny;
Syd Johnaton. Orlando Utilitiaa; Mica Alice human of Rollina
College. Center for Practical Politica; John Kridar, Seminole
County Couiaaionar and Praaidant oi the Seminole County Chamber

ct Comerce; Hilliaa a. Dial. repreaantins the Florida Bankera
Aaaociation; and Alfred HcKathan. former Road Board Chaim.

The following mnbera of the Finance and Taxation Comittaa
were preaent.

Imam commas: Senator Tom Adam. Senator C. 'l'. Helton.
Senator I: o Bronaon, Senator John A. Sutton. Repreaantative
Beth Johnaon. Representative Reubin Aakew. Retreaantative

George L. Bollahan. Jr.. Repraaantative Ualborn Daniel and
Rapraaantativa u. C. Berrall.

COUNCIL: Senator San Cibbona and Rapraaentative William
V. O'Neill

COUNCIL ASSOCIATES: Repreaentativa A. P. Drumond.

Repreaentativa William S. Boylaton. Repreuntativn Jack C.
lnman.

Other members of the Legialature preaent were: Senator
Jeuea 8. Connor. Senator Ed Price. Jr., Repraaentative

Howard Livingston. Representative Harry Ueatberry and
Representative Tom Whitaker.

The Chairman introduced H. J. Roberta. General Counael and
Executive Director of the Interim Coeedttee; the Praaa: Hra. Habel
Reece, Daytona Neva Journal; Dan Ryder. Orlando Peat; Al opheit,
winter Park Sun Herald; Charlee Daragh. florida Trend Magazine.

Senator Adana explained the objectives of the Florida
Lasialative Interim Coeodttee on Finance and Taxation. lt wee
pointed out that it had become evident to the repreaentativea of
the people of the State of Florida in the Legielatura that the

fiacal but of the atate ahould be carefully and critically
examined ao as to effect maximum efficiency and to diatribute

the tax burden lore equitably anong all taxpayera. Senator Adana
cited the accoapliahnenta of the etate in having a balanced budget.
and in the fields of education. welfare. ete.. and reiterated

the need for a broad aound tax baae to further accoapliah thaae
purpoaea. All individuala and troupe interested in making
reconnendationa. auggeationa or couenta relative to the tar
atrueture of the atate were requested to contact w. J. Roberta

to achedule their appearancea at one of the remaining public
hearinga to he held by the Comittee.

The firat group to appear before the Comittee wee the
Florida Sankara Aaaociation which opposed the 1957 increase in
the Claaa B intangible tax. This group nae repreaented by
Floyd Call. Florida Bankera Aaaociation. Orlando; Paul Renato.
Vice President and Iruat Officer of the Palmer Firat National
Bank in Saraaota; Clifford M. Bauer. Pirat National Bank.
Orlando; Alfred Heathen. Chairman. lexialative Omittee.
Florida Sankara Aaeoeiation. Brookaville; M. x. Hobba. frea-
holder and attorney. Orange County; William H. Dial. Orlando.

Mr. "anaen called to the Connittee'e attention exceptions
which he bud taken to data contained in a comparative analyaia
of other atatea' tax atructures published by the State Coeptroller
along with an exhibit giving a formal preaentation of the baaic
problem of the intangible tax increase from the banker's view-
point. Hr. Hansen and Mr. Hobbs filed a copy of their notea
with Mr. Roberta. Examples were given to illuetrate the effect
of this tax in deterring peeple of wealth from becoming
residenta oi the State of Florida. 80 auggeation or reconnendation
was given to replace the revenue which would be loat to the
state in the event this intangible tax was repealed or readjusted.

2

Representative Daniel asked the industry viewpoint on whether
the revenue lost by a change in this intangible tax might be made
up by adopting proper eschest laws. Mr. Dial replied that he
felt he would be in favor of enacting fair eschest laws which would
insure a depositor of the right to his deposited funds without
court action.

Senator Adana injected the statement that a special legislative
coenittee is working on the matter of escheateent and Senator
Connor. Chairman of the Committee on Escheateent, stated a study
of escheatment is being nude and felt certain that his Committee
Will have proposals to make on this subject.

Senator Gibbons stated that the State Comptroller had informed
his that state banks are not now taxed on supplies and equipment
under the present sales tax law because federal banks are iuuune.
In response to his question if there is any law in effect prohibit-
ing the tax on federal banks. hr. chethan answered that there
is no law prohibiting sales tax on banks in Florida. but the
Comptroller has ruled that the sales tax should not he collected
from state chartered banks.

Mr. Gordon T. Butler. Executive Secretary of the Florida
League of Municipalities, distributed a preliminary report to
each member of the Committee. Mr. Butler stated that eunicipalities
are exhausting their sources of revenue and that his group will
make recommendations which would alleviate this problem. Mr. ONeill
asked if it would be better for the municipalities to levy the tax
rather than the legislature to which Mr. Butler replied that is
being done to a certain extent now and the municipalities would
assume the responsibility if permitted to do so. Mr. Butler
stressed that the work of his Committee was being done with close
cooperation with the work of Dr. Wylie Kilpetrick of the UniVersity
of Florida who is now completing a study assignment under a
contract with the Comlttee.

The Board of County Commissioners of Orange County was
represented by Mr. James Robinson. its Attorney; C. A. Cheesuan,
Tax Collector; and >u. Arthur Ncuell. Clerk of the Circuit Court
of Orange County. Mr. Robinson stated that the 25c fee provided
for issuing of tags and titles in 1933 is not sufficient to pay
for the cost of the operations. In his county the annual report
shows $59,000 was collected from this 25c fee whereas the cost

of operating this one particular department was over $90,000.

3



the difference being taken out of other fees of the office
which otherwise would so into the general revenue fund.

Hr. Robinson asked for legislation to provide for an adequate
fee to cover the cost of operating this department. Mr.
Cheesean stated the greatest loss is incurred with the
processing of certificates of titles. He said that recon-Bade-
tions would be presented to the Committee in writing. In
response to a question by Mr. O'Neill as to the Tax Collectors
Association having a compilation on the 67 counties in relation
to this subject. Mr. Cheesmen stated that this information is
available and would be furnished to the Committee.

Mr. Robinson recommended revision oi Chapters 191 and
19a. Florida Statutes. relating to real estate taxation, and
in addition reconnended that records of delinquent tests be
transferred to the Tax Collector. Hr. O'Neill asked if this
matter had been presented to the legislative Council's Coendttee
on Governmental Reorganisation to which Senator Adams stated
he understood it had been. Mr. Robinson stated a complete
recommended program would be submitted to the Legislative
Committee prior to the 1961 session.

Dr. H. R. Hilbur. representing the Florida Wildlife
Federation stated that their studies reveal that the recreational
water use of the Stete o! tlorids anounted to $800,000,000 a year
income for the state. He also recommended support for the
Department ot Water Resources; requested the Board of Health
to estimate the cost of sufficient voter control measures.
he requested that consideration be given to a bill which was
defeated in the last session of the Legislature vhich would
authorize the federal government to use a portion of the
revenues derivod from duck stamp tees for the purchase of
migratory water iovl retuges within the state. He stated his
organization was in favor of nedificetion of the personal
property tax on boats and that the registration (as now
charged boat owners was not sufficient to provide for a water
safety program. Senator Adena suggested that the condemnation
of wet lands be referred to Representative Chappoil's Committee
on Covornmcntal Reorganization. and that a request for
appropriations be referred to the Committee on Appropriations
and Auditing. It was suggested by Representative Livingston
that in any instance where a recommendation is presented for
repeal of one tax a recommendation be made for replacing the

As

revenue which would be lost by such repeal. Dr. Wilbur
stated that the recommendations of the Florida Wildlife

Federation couplying with this suggestion would be ends
in writing to the Counittee.

The Florida Council of Business and Industry was
represented by Hillier Hills. Walter C. Allen, Jr., R. B. Smith.
Julian Myrich and Milton Blank. Mr. Walter Allen, representative
of the Florida wholesalers Association and Director of the
Florida Council of Business and industry. submitted a memorandum
to the Committee in which he stated their chief objective is
to have business inventories treated more equitably for tax
purposes. as outlined briefly the conduct of a study being
node to illustrate the inequity of the present inventory tax

on different types of business. and stated that his organisation

will request a reclassification of business inventories'for
tax purposes.

Mr. R. B. Seith. Certified Public Accountant. retained
by the Florida Council of Business and Industry to prepare
this survey. presented to each member of the Committee a copy
of a "Preliminary Survey of Tangible Personal Property Taxation
in the State of Florida" and explained to the Coanittee the
material contained therein. Hr. Smith emphasised the fact

that he will have a more complete report encompassing personal

property tax for every county in the state for presentation
to the Committee in the near future.

Hr. myrick urged that stock in trade tan be reappraised

in order to remove inequities and stated they are ouch encouraged

that this Comittee has nude the inventory tax one of its
areas of study.

The Committee recessed tor 0: minutes for lunch.

Mr. Nilton Blank, Executive Secretary. Orlando Manufacturers
Association. presented a statement dealing with tax on
tangible properties and inventories, prepared on the basis
of his personal experience in the retail trade.

Senator Melton, presiding during the temporary absence
of Senator Adams, thannod hr. Mills and Mr. Allen on behalf

oi the Committee and lcgl.lators for the luncheon which was
sponsored by the Florida Council of Business and Industry.

5

The Florida Cattle-en's Association nee represented by

Arthur Higbie. Executive Vice President; and Hr. J. 0. Pearce.
Jr.. President.

Mr. Bigbie presented the Association's report to the
Coueittee. stating their greatest area of objection to the ten
structure as it now exists is the ousatead Breeption Law.

Hr. Pearce presented a letter to the Coeeittee relative to
property taxation which eede the following specific reeoeeendations:

1.

5.

Every effort be eade to secure new and sore equitable

sources oi taxes and to reduce the dependence on ad
veloree taxation.

Repeal or sodification of the noeeatead Exception Lee.

Require that local govern-eats use the appraised value
of property for tax purposes. it it is necessary to
reduce the appraisals by a percentage teeter, set the
percentage as high as practicable end have the ease
percentage throughout the state.

Require that agricultural land be appraised on its
ability to produce income and that speculative values
must not be considered.

Require that local govern-ants give the general public
greater length of tine for study between the subeitting
of proposed budgets and approval of sees.

Require that counties undergoing reappraisal reduce
their nillogea to e reasonable level to cosponsate for
increased values.

it; Joe Michael of Hebaeso. Chairean of the Florida Fern Bureau
Committee on Taxation. read a statement relating to the Bureau's

general philosophy of taxation.

he expressed the hope that there

will be no need for additional taxation; that the tan program
should bring about fair and equitable distribution of the tar
burden with consideration of its effect on the state's econoey.
he supported Hr. Gordon Butler's presentation that there should

be more local assumption of responsibility and also made
recommendation regardin; the one made by the floride wildlife

6

Federation that would peredt conservation areas to be set up
by the Federal Government.

woodrow J. Darden. Superintendnet oi Public instruction.
nrevard County and President of the Florida Education Association.
was the next person to appear. at. Darden stated that the Board
of Directors of the Florida Education Association will have certain
recon-endstions to file with the Conittae. it. Darden offered
his and the services or the Florida Education Association to
assist the legislative Connittee on Finance and Taxation in any
way. He said that PEA was concerned about adequacy of local
sources of revenue and reiterated that the only source of revenue
available to local school boards is ad valoree property tax and
asked that some additional means he found for local support of
schools. He race-headed enabling legislation for counties and

omnicipalities and cited private business on government lands
being except from taxation.

Hr. willie. B. Netscbert of Daytona Beech presented his

recounendations concerning Hort-en's Compensation Law. he stated
that Senate Bill 115 introduced in the 1959 Legislature in its

original torn use a model hill and a perfect formula and should
be reconsidered.

Mr. Edward B. Sexton, Apopka. and Mr. R. J. Sidebov of
Winter Park appeared before the Committee making suggestions as

to the tax structure and supporting recon-endetions of other
persons who had previously made stateeenta.

Senator Adams recognized representatives of the League of

women Voters and others and then took up the order of Connittee
business.

On motion of Representative Drmlnuond, seconded by Senator

Melton and unanimously adopted. the ndnutes of the last meeting
acre approved as presented.

w. J. Roberts briefly outlined a tentative schedule for the
Miami meeting and indicated that the organisations which have
indicated a desire to appear before the Committee as being:

Florida Bankers Association (representatives from the

Miami area
Pompano Beach Taxpayers Association

1
a

Florida Congress of Pamto and Tooohoro
Florida Council of Business and Industry

Senator Adam announcod tho oppotntoonc of Rapruonuuvo
mun. V. o'nuu no Claim of tho Property Tax Subcomlttu

to ouccodSonator Dewey H. Johnaon who roatgnod a cannon.
nub Senator Irlo Brannon as Vice Cbotrun.

Ropruonntlvc O'Neill mutated that various groups
appearing before the Gumtree: uhorovor practical bo ochodulod
according to tho phase of taxation in which they won inroruud.

Mrs. Huh Johnson onward that various whoop-Ina.

not following ad)th of tho Commute. hearing in Miami.
August 12. 1960.

Upon motion by Senator mlton. Marlo; m odjoormd at
6:00 P. M EST.




PAGE 1

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