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Strong support from the local level is needed if these proposals are to be adopted by the Legislature. Included with this memo is a brief explanation of the proposals and why they are important to counties. This information will be useful in answering any questions the media may have for you about the proposed budget and these proposals. more importantly, county officials should go on record supporting these proposals. Support can be demonstrated through the issuing of statements at commission meetings, resolutions, or press releases. If you have any questions about the proposals, please contact Alma Gonzalez-Neimeiser of our office at (904) 224-3148. Thank you. JCS/CC/AGN JAMES G sMAWM % DAVEMUM NAVOT FENN AL4nW YOUNG ANNE t.00DNXW ED XENAWY EXECUTIVE MUMS PRESENT IsrVICE 2ND Y= no VICE JA 4fEDM7F SAWA ROM PRESMFNr PROIDfM PRESIDENT PAST /RESIDENT I$Y. LUCIE I PDLX COLLIE RRDWARO SUMMARY GOVERNOR'S LOCAL GOVERNIMENT TAX AND REVENUE FLEXIBILITY INITIATIVE January 13, 1992 Partial Year Assessment: Currently, improvements to real property are placed on the ad valorem tax roll on January 1 if "substantially complete." If an improvement is substantially completed on or after January 1, the improvement escapes ad valorem taxation for the entire year. This proposal would require all property to be placed on a partial year ad valorem tax roll as it becomes substantially complete so that it pays its share of taxes. The tax would be collected in the succeeding fiscal year based on the amount of time during the year it was substantially complete. It is estimated that if the partial -year assessment were in effect on 1/1/93 county governments would gain about $34 million in FY 93-94. Tangible personal property would be exempt. However, if this exemption is found unconstitutional it would be severed. Small County Kicker: The small county kicker would be increased from $5.5 million to $19.5 million- $15 million for emergency distributions; $2 million in crisis distribution to those small counties which do not qualify for an emergency distribution; and $2.5 million for a supplemental distribution to counties with 25,000 or fewer person and an operating millage rate of at least 9 mills in the previous year. Occupational License Tax: Currently, there is a cap in the amount local governments can charge for local occupational license taxes. This proposal would substantially revise provisions pertaining to local occupational license taxes to .45 JAN 21 u,-9-2