A sales tax referendum appears on Osceola County voters’ ballots in this election, to extend a 1% sales tax surtax that has been collected since voters in the 1990s approved it.
If a majority of the county votes ‘No’ on the referendum in the Nov. 8 election, the surtax will sunset in 2025. A majority ‘Yes’ vote will maintain the local sales tax at 7.5% — not raise it from where it has been for nearly 30 years -- and extend the surtax through 2045.
Of the funding collected annually from the surtax, Osceola County receives 50%, the School Board of Osceola County collects 25%, and the remaining is paid evenly to the cities of Kissimmee and St. Cloud.
State statute states that proceeds from such surtaxes cannot be used for general operating expenses or employee salaries. Acceptable uses are to pay for public projects like schools, public safety, parks, roads, sidewalks and other related infrastructure.
Local government entities like Osceola County and the School District have relied on those millions of dollars of additional funding. In the written ordinance, School District officials said it makes it possible to, this year, replace aging school buses, improve digital networks and access on campuses and make front offices hardier from a security standpoint.
The county said it plans on adding and improving parks and bike trails and pedestrian safety projects, along with adding capacity to existing roads and intersections. And, the two cities would be able to contribute more to public safety and emergency equipment and facilities.
Those who are against the referendum claim that this is simply a new tax to replace an old one. One group has even filed a lawsuit to take the referendum off the ballot. State Rep. Anthony Sabatini (R-Clermont) filed it on behalf of a group of Osceola voters. In the 23-page “emergency complaint for declarative and injunctive relief,” Sabatini claims that since the surtax is labeled as “one-cent” instead of “one percent,” it is misleading to voters.
“By using the term ‘cent,’ (the ordinance) conveys to voters the impression that the tax increase is less than it materially is by not disclosing the rate of the tax,” a part of the lawsuit states.
“There is no cogent reason for a local government to use the term “cent” as opposed to “percent” other than in an attempt to lessen the impression of the tax increase in the mind of the voter … This deceptive, purposeful ambiguity is a clear violation of Florida Statute.”
While the county would not comment on the lawsuit specifically, County Manager Don Fisher said the state is clear on language that must be used on tax referendums, and that the state itself uses “cent” in describing tax referendums.
Court records show a hearing was supposed to be held last week on the matter, but there are no records of that Oct. 27 hearing.
A similar referendum on the ballot in Orange County, which would add to its sales tax, calls it “a surtax at the rate of one percent.” Coincidentally, a judge last week ruled against another Orange County referendum proposing controlling the rate of rent increases. Since ballots were already printed and early voting had already started, the courts said the vote results would not be certified after the Nov. 8 election date.
