Bahamas News

A storm is brewing in the tax industry in Florida where it appears the passage of a ballot initiative to repeal the exemption tax for shipping goods through the state is a real possibility, according to Chamber of Commerce President Dionisio D’Aguilar.

His comments came at a luncheon Wednesday that the chamber held for members of the chamber.

“Right now when you export goods from Florida to The Bahamas you do not pay a 6% sales tax,” Mr. D’Aguilar said. “The state of Florida experiencing a budgetary crisis, is looking for ways to raise revenue so they are thinking of ways to raise taxes.”

Mr. D’Aguilar said that the politicians in Florida are thinking of reversing that exemption so the goods that are shipped from Florida to the Bahamas will be charged at a 6% sales tax.

“You will have to pay duty and stamp tax on that additional 6% so this can effectively mean that the goods imported from Florida to the Bahamas will go up by 9%,” he said.

Adam Hasner, the guest speaker and deputy majority leader in the Florida House of Representatives said that there is an “affordability crisis” being experienced by Florida.

“Up to the past five years, Florida has experienced great economic growth and prosperity,” Mr. Hasner said. “But as the national real estate market started to decline, we started to experience an economic downturn.”

Mr. Hasner pointed out that rising inflation has become a major problem for Florida as well as unemployment.

“We are also experiencing a more severe real estate slump that is impacting our economy,” he said.

Mr. Hasner told those gathered that as a result of this, politicians are trying to find ways to generate different forms of revenue.

“There is a very important sales tax exemption which makes up about $4 billion of our $13 billion industry in sales tax exemption and that’s an exemption which protects from taxes being levied for export,” Mr. Hasner said.

He said for that reason it is so critical for each person that attended the luncheon to pay attention because the politicians in Florida are looking for more revenue to support services.

“They have to find that money from somewhere and that means they are looking to put every single sales tax exemption or increase on the table,” Mr. Hansen said.

Mr. Hansen also urged that Bahamian businessman monitor closely to two factors in Florida.

“The Bahamas needs to watch the Florida legislature and something called the tax and budget reform commission,” Mr. Hansen said. “Every 20 years- and this just happens to be that year- the tax and budget reform commission convenes and they are members who are not elected.”

He explained that those persons are appointed by the governor of Florida and by the presiding officers of the House of Representatives and the senate.

“They have the constitutional authority to put measures before the voters and bypass the legislature which is a tremendous amount of power,” he said. ” I’m elected by the people of Florida; these persons are not elected but they have the power of direct democracy to put a measure before the voters for their approval.”

Mr. Hasner is himself against the tax coming into effect because of the potential for major loss in business from the Bahamas. He did urge others to join the lobby against it as well.

Source: Bahama Journal