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Service Tax Revisited

February 25th, 2008 by Mike Vasilinda

It has been 21 years since Florida�s experiment at taxing services failed and was� repealed, But as Mike Vasilinda tells us, rising property taxes has an independent commission taking another took at what items aren�t now taxable.

Hear it here: Service Tax Revisited

Skyboxes and Ostrich Feed get a lot of attention for being untaxed. But the tax code lists 246 specific exemptions.

Boats that come for 20 days aren�t taxed but longer slip rental is.

Newspapers are also taxed, but the ad inserts inside aren�t.

Rising property taxes have a little known group named the Taxation and Budget Reform commission looking at ways to eliminate some exemptions. Jim Scott says eliminating the school tax is a top priority.

�It would be a tremendous 35 percent in Broward County and I happen to know, reduction across the board for all property taxes,� Scott said.

Dry Cleaning is not taxed. But changing that would not matter to Amanda Hammerli.

�I don�t dry clean enough for it to even bother me,� Hammerli said.� �So I wouldn�t care either way really.�

But the people behind the dry cleaning counter worry.

�I think everybody would start cleaning clothes at home, to be honest with you,� dry cleaning manager Yvonne Smith said.

Taxing bottled water would raise enough money to hire a thousand teachers and pay them all 34,000 dollars a year.

Randy Miller was in charge of the state�s revenue department the last time a services tax was tried.

�We did it 20 years ago. It�s a failed experiment,� Miller said. �We need to be looking 20 years forward, not 20 years backward.�

Voters may have the final say, but trading taxes on somebody else for lower property taxes could be appealing to many.

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