WHAT HAPPENED TO YOUR PROPERTY
TAXES, HOW ARE THEY CALCULATED?
Over the past ten years, the taxable value of all property within the City Of New Smyrna Beach has appreciated 378%, providing more revenue per $1000 taxable valuation, for the same mileage rate. Since 2001, appreciation has been 256%, did your income increase 37.8% per year over the last ten years, or 51.22% over the last five? I think not!
Look at what has happened to taxable property values since 2003. In 2003, the taxable value of all New Smyrna Beach real property was $2,171,661,609; the NSB tax rate was 5.1mils (.0051) per $1000 taxable evaluation; total tax revenue to the city was $9,642,414. The 2006 preliminary tax base is $3,792,859,045; and is expected to yield $16,726,508 for the city, an increase of $7,084,094 over 2003, or an average of $2,361,364 per year. The tax base has been expanding significantly over the past five years and there is no end in sight. The tax appraiser estimates that property values have appreciated 35.81% over 2005. Therefore, your taxes will reflect that increase to the extent the city commission does not rollback the mileage rate to yield a zero growth. For the 2006 tax year, they have reduced the rate from 4.81 to 4.41 mils, but this does not yield zero tax growth, it is the annual inflation rate plus 1%, and includes the 0.5 mill debt service passed by referendum. For a change this looks reasonable.
For those of you who wish to gain a more thorough understanding of this tax jargon, please read the definitions provided below.
Florida Property Tax Definitions
"Ad valorem tax" means a tax based upon the assessed value of property. The term "property tax" may be used interchangeably with the term "ad valorem tax."
"Ad valorem tax roll" means the roll prepared by the property appraiser and certified to the tax collector for collection.
"Assessed value of property" means an annual determination of the just or fair market value of an item or property or the value of the homestead property as limited pursuant to s. 4(c), Art. VII of the State Constitution or, if a property is assessed solely on the basis of character or use or at a specified percentage of its value, pursuant to s. 4(a) or (b), Art. VII of the State Constitution, its classified use value or fractional value
"County property appraiser" means the county officer charged with determining the value of all property within the county, with maintaining certain records connected therewith, and with determining the tax on taxable property after taxes have been levied. He or she shall also be referred to in these statutes as the "property appraiser" or "appraise
r."
"County tax collector" means the county officer charged with the collection of ad valorem taxes levied by the county, the school board, any special taxing districts within the county, and all municipalities within the county.
"Couple" means a husband and wife legally married under the laws of any state or territorial possession of the United States or of any foreign country.
"Department" means the Department of Revenue.
"Enterprise zone" means an area designated as an enterprise zone pursuant to s. 290.0065. This subsection shall stand repealed on December 31, 2005.
"Extend on the tax roll" means the arithmetic computation whereby the mileage is converted to a decimal number representing one one-thousandth of a dollar and then multiplied by the taxable value of the property to determine the tax on such proper.y
.
"Exempt use of property" or "use of property for exempt purposes" means predominant or exclusive use of property owned by an exempt entity for educational, literary, scientific, religious, charitable, or governmental purposes, as defined in this chapter.
"Fee timeshare real property" means the land and buildings and other improvements to land that are subject to timeshare interests which are sold as a fee interest in real property
.
"Governing body" means any board, commission, council, or individual acting as the executive head of a unit of local government.
"Homestead" means that property described in s. 6(a), Art. VII of the State Con
situation.
"Levy" means the imposition of a tax, stated in terms of "mileage," against all appropriately located property by a governmental body authorized by law to impose ad valorem taxes.
"Mill" means one one-thousandth of a United States dollar.
"Mileage" may apply to a single levy of taxes or to the cumulative of all levies.
"Non-ad valorem assessment roll" means a roll prepared by a local government and certified to the tax collector for collection.
"Permanent resident" means a person who has established a permanent residence as defined in subsection (18).
"Permanent residence" means that place where a person has his or her true, fixed, and permanent home and principal establishment to which, whenever absent, he or she has the intention of returning. A person may have only one permanent residence at a time; and, once a permanent residence is established in a foreign state or country, it is presumed to continue until the person shows that a change has occurred.
"Personal property," for the purposes of ad valorem taxation, shall be divided into four categories as follows:
(a) "Household goods" means wearing apparel, furniture, appliances, and other items ordinarily found in the home and used for the comfort of the owner and his or her family. Household goods are not held for commercial purposes or resale.
(b) "Intangible personal property" means money, all evidences of debt owed to the taxpayer, all evidences of ownership in a corporation or other business organization having multiple owners, and all other forms of property where value is based upon that which the property represents rather than its own intrinsic value.
(c) "Inventory" means only those chattels consisting of items commonly referred to as goods, wares, and merchandise (as well as inventory) which are held for sale or lease to customers in the ordinary course of business. Supplies and raw materials shall be considered to be inventory only to the extent that they are acquired for sale or lease to customers in the ordinary course of business or will physically become a part of merchandise intended for sale or lease to customers in the ordinary course of business. Partially finished products which when completed will be held for sale or lease to customers in the ordinary course of business shall be deemed items of inventory. All livestock shall be considered inventory. Items of inventory held for lease to customers in the ordinary course of business, rather than for sale, shall be deemed inventory only prior to the initial lease of such items. For the purposes of this section, fuels used in the production of electricity shall be considered inventory.
(d) "Tangible personal property" means all goods, chattels, and other articles of value (but does not include the vehicular items enumerated in s. 1(b), Art. VII of the State Constitution and elsewhere defined) capable of manual possession and whose chief value is intrinsic to the article itself. "Construction work in progress" consists of those items of tangible personal property commonly known as fixtures, machinery, and equipment when in the process of being installed in new or expanded improvements to real property and whose value is materially enhanced upon connection or use with a preexisting, taxable, operational system or facility. Construction work in progress shall be deemed substantially completed when connected with the preexisting, taxable, operational system or facility. Inventory and "Predominant use of property" means use of property for exempt purposes in excess of 50 percent but less than exclusive household goods are expressly excluded from this definition.
"Predominant use of property" means use of property for exempt purposes in excess of 50 percent but less than exclusive.
"Procedure" The property appraiser is the elected constitutional officer responsible for determining and listing the value of all property in each county. All questions of assessment are initially determined by him. If a property owner objects to a proposed assessment, the owner may appeal to the Value Adjustment Board (VAB) for that county. The Board consists of three members of the county commission and two members of the school board. The Board members may choose to employ special masters to conduct the VAB hearing for them. The Department of Revenue, Ad Valorem Tax Division, assesses the property of railroad and private car line companies and certifies the assessed values to the counties.
"Real estate used and owned as a homestead" means real property to the extent provided in s. 6(a), Art. VII of the State Constitution, but less any portion thereof used for commercial purposes, with the title of such property being recorded in the official records of the county in which the property is located. Property rented for more than 6 months is presumed to be used for commercial purposes.
"Real property" means land, buildings, fixtures, and all other improvements to land. The terms "land," "real estate," "realty," and "real property" may be used interchangeably. Real property includes all other permanent improvements on the land and is broadly classified, based on land use, as follows:
a. Single family and multi-family residential, condominium, cooperatives, townhouses, time-share developments and mobile homes; Vacant residential and unimproved acreage; Commercial/Industrial, vacant or improved; and, Agricultural.
b. By July 1 of each year, the property appraiser must report the just value of all real property in the county as of January 1. Factors to be considered in determining just value are: present cash value; use; location; quantity or size; cost; replacement value of improvements; condition; income from property; and net proceeds if the property is sold.
c. The tax due for each parcel is calculated by multiplying the taxable value by the tax rate (mileage) levied by the taxing authorities within that county. The proposed tax bill is mailed to the taxpayer, usually in August or September. Any timely appeal of the tax assessment shall be made against this notice. The actual tax bill is mailed to the taxpayer, usually by November 1. The payment must be made to the tax collector by April 1 of the following year. There are discounts for early payment and penalties for delinquency.
"Taxable value" means the assessed value of property minus the amount of any applicable exemption provided under s. 3 or s. 6, Art. VII of the State Constitution and chapter 196.
"Tax certificate" means a legal document, representing unpaid delinquent real property taxes, non-ad valorem assessments, including special assessments, interest, and related costs and charges, issued in accordance with this chapter against a specific parcel of real property and becoming a first lien thereon, superior to all other liens, except as provided by s. 197.573(2).
"Tax notice" means the tax bill sent to taxpayers for payment of any taxes or special assessments collected pursuant to this chapter, or the bill sent to taxpayers for payment of the total of ad valorem taxes and non-ad valorem assessments collected pursuant to s. 197.3632.
"Tax rate (mileage)" is set by the taxing authority for the governmental unit within which the property is located. The Florida Constitution directly authorized counties, school districts, and municipalities to levy ad valorem taxes. It also provides that special districts may be created and authorized by law to levy ad valorem taxes.
The total tax rate is the combined tax rates (mileage's) of all taxing authorities having jurisdiction over property in the county. That part of the rate for general county operations and maintenance is constitutionally limited to a maximum of ten mills and is set by the county commissioners. The remainder of the county tax rate consists of various referendum-approved debt service mileage for bonds and mileage required by state law. Also, school districts and municipalities are limited to a maximum of ten mills for operations and maintenance. The Florida Constitution provides that no state ad valorem tax will be levied. However, each year the legislature prescribes a required local mileage for each school district to provide revenue for the Florida Education Finance Program. Each special district tax rate is levied by the district taxing authority against the property lying within the special district itself. Such districts include hospital, drainage, and lighting districts. Special districts are usually less than county-wide; some districts, such as the water management districts, may cover several counties. Each tax bill consists of the total of all mileage applicable to the particular property. The tax bill also includes the related taxes due for all the taxing authorities having jurisdiction over the property.
"Tax receipt" means the paid tax notice.
"Tax rolls" and "assessment rolls" are synonymous and mean the rolls prepared by the property appraiser pursuant to chapter 193 and certified pursuant to s. 193.122.
"Taxpayer" means the person or other legal entity in whose name property is assessed, including an agent of a timeshare period titleholder.
"Timeshare period titleholder" means the purchaser of a timeshare period sold as a fee interest in real property, whether organized under chapter 718 or chapter 721.
"Totally and permanently disabled person" means a person who is currently certified by two licensed physicians of this state who are professionally unrelated, by the United States Department of Veterans Affairs or its predecessor, or by the Social Security Administration, to be totally and permanently disabled.
"Use" means the exercise of any right or power over real or personal property incident to the ownership of the property.
INDIRECT TAXES
We applaud the fact that the City of New Smyrna Beach decided to forego the entire amount of the ad valorem tax rollback. But we think you should know that this munificence is only a matter of degree. The taxes collected by the City through indirect means increased by almost 13 % from 2005. The City appears to have collected an additional $6,300,000 dollars, and this has permitted the administration to give an across the board 6.5% pay increases to all employees, and to continue to spend more of your money than if smaller amount had been received, from these indirect taxes. The City represents a projected 4.2% inflation that it used to determine needed income for a government operating on the same basis as fiscal 2005, but its actual take is about $4,000,000 more than the inflation factor. Why spend it, rather than save it for a rainy day?
What this means to you as a taxpayer, is that your taxes still went up significantly but they are basically hidden so you are not fully aware that you are paying them every time you fill up your gas tank (a portion of the 5 cent a gallon Volusia County gas tax), pay your telephone or cell phone bill, pay the extra tab on your Utility Commission bill, or renew a state, county, or City licenses. These are not nickel and dime expenses. For example nine dollars out of every hundred dollars on your Utility Commission bill is a tax, and then the Utility Commission pays another six percent of its gross to the City. Each year these costs rise, and City government expands and has greater expenditures for better facilities. While not in New Smyrna Beach, the mind set can be seen in DeLand, where they just dedicated a new $10,000,000 city municipal building whose prime objective is better quarters for city employees and which was justified because it would save citizens from going to different buildings for different permits.
Unlike our neighbors who were very greedy, our officials are content to just eat at the public trough in a more genteel fashion. We should be appreciative, but appreciation should be tempered with the reality that they are still at the top of the food chain, and have not decided that a more modest diet would be beneficial to overburdened taxpayers. They could reduce the taxes on your utility bill.
See links to City budget and scroll down on both 2005 and 2006 to the total revenue charts.
INDIRECT TAXES: VOLUSIA COUNTY
We undertook a project designed to frustrate even the most intrepid explorer into the 4th dimension. There is no question that the County budget was constructed by experts and is framed so as to keep all of the funds in separate compartments for both revenue and expenditures. There is the rub. To unravel what appears to be a simple question of how much money does the County collect in funds other than ad valorem taxes (read property taxes) requires a guided tour through the labyrinth of the arcane with a guide. Unfortunately, there is no guide available with extra time to spend during budget time because of other pressures brought on by the need to get the budget to the County Council.
So what to do. We could extrapolate by projecting the 5% or so extra intake of funds to the general fund to the rest of the budget. This is $5 million more than simply shown by the $30 million dollar increase in the general fund that comes mostly from the property tax. However, even this gets dicey, because some of the 60 to 70 special funds that are not in the property tax structure generate reductions in projections in some years while others show gains. What do you with these fluctuating numbers and is it fair to state that they will be realized when they are problematical. What is clear however is that there is a substantial amount of money that flows to the County from indirect taxes or indirect revenue sources if you are happy with that term, and that money is spent by the County government as shown in the expenditure pages.
It was easy to determine a rough number for the City. We will make a stab at a better analysis
for the County, but all we can say at this time is that it is substantial, that it is hidden in the nooks and crannies of the 621 page budget submission, and that we may need a battalion of
Of marines to protect us from those that proposed this budget if we ever put together the true numbers. Keep in mind, that inflation was only 4% last year, so that any indirect revenue amount whose total exceeds about $10 million (about 4% of last year's budget) is an unaccounted for windfall, above and beyond the $30 million dollar property tax.
WHAT HAPPENED TO YOUR TAXES, HOW ARE THEY CALCULATED?
PREFACE
The taxing authorities try to convince you that a rate reduction is being provided in the interest of controlling your taxes, and implies that your taxes will decrease. This is a deception, and strictly PR for the masses. First, this year, almost every jurisdiction is increasing your taxes from 19% to 35%. If you have a homestead, you pay almost what you paid last year (a 3% rise in assessment value offset by 7% decrease in the rate only in the County portion). So you breathe a sigh and say your taxes did not go up. Wrong! The State has mandated that they only take in as much this year as they collected last year from the assessed taxable value for your property. If they do not, you must be told that there is a tax increase. So, the ploy is to tell you there will an increase, but it should not bother residents with homestead exemption, i.e. voters, because you as a voter are not the ones who seem to be paying through the nose. The bureaucrats run off with an extra $30,000,000 in the County and do not think you will complain. If Congressman Feeney or Mica campaigned for a 19% tax increase on your income taxes, we think you would show your dissatisfaction by voting them out of office. Well, that is what your local politicians are doing with your property tax!
It looks like every jurisdiction in the neighborhood except the City of New Smyrna Beach is taking all the money it can squeeze out of the property owners, particularly second home owners and businesses who do not enjoy homestead exemptions. It may be time to make this process more open, reduce any increase from these taxing districts to the cost of inflation, and require them to have a referendum if they want to take more than the inflation factor plus say an modest 3% above the inflation factor. The theft, yes it is akin to theft given the way they hide the increases or use slight of hand to make them appear as reductions. The take is 19% for the County, 20% for the School Board, and 35% for Bert Fish, the library, the fire district in South beach, and the mosquito control district.
If all of the tax districts amounts were calculated only on a 4% inflation factor, your ad valorem tax bill would go down about 31% to 23% or more in either a special district or the County. For every $100,000 of assessed value, your tax would be $600 less ----almost enough to pay the Utility Commission's new rates. Possibly the Charter Review Commission could suggest an oversight board with some authority to modify these tax increases and reign in these tax wolves.
For those of you who wish to gain a more thorough understanding of this tax jargon, please read the definitions provided below as an appendix to this article.
NEW SMYRNA BEACH
•
Three year property revenue increased from $7.1 million to $16.7 million;
Three year property revenue increased from $7.1 million to $16.7 million;•37.8% increase per year since 1997 and 51% over the last five;
37.8% increase per year since 1997 and 51% over the last five;•Rate of inflation for last 10 years less than three percent per year;
Rate of inflation for last 10 years less than three percent per year;•2006 a 4% increase appears reasonable;
2006 a 4% increase appears reasonable;• Looks like we are better off having John Hagood as City Manager
Looks like we are better off having John Hagood as City ManagerOver the past ten years, the taxable value of all property within the City of New Smyrna Beach has appreciated 378%, providing more revenue per $1000 taxable valuation, for the same mileage rate. Since 2001, appreciation has been 256%. Did your income increase 37.8% per year over the last ten years, or 51.22% over the last 5? We think not! There are two facts you must know to understand your taxes: (1) When you pay your tax this year you are paying for a value set as of January 1, 2006, and (2) when the actual property value of the jurisdiction goes up, the taxable value goes up, the amount collected from all properties is supposed to be reduced, so the jurisdiction receives no more real dollars than it did last year. This is called rollback. If the mileage rate stays the same, you pay a tax increase equivalent to the increase percentage increase in taxable property valuation, usually a big increase. The tax increases this year are set out below. Most of them are simply excessive.
Look at what has happened to taxable property values in the City of New Smyrna Beach since 2003. In 2003, the taxable value of all New Smyrna Beach real property was $2,171,661,609; the NSB tax rate was 5.1mils (.0051) per $1000 taxable evaluation; total tax revenue to the city was $9,642,414. The 2006 preliminary tax base is $3,792,859,045; and is expected to yield $16,726,508 for the city, an increase of $7,084,094 over 2003, or an average of $2,361,364 per year. The tax base has been expanding significantly over the past five years and there is no end in sight. The tax appraiser estimates that property values have appreciated 35.81% over 2005. Therefore, your taxes will reflect that increase to the extent the city commission does not rollback the mileage rate to yield a zero growth in revenue. For the 2006 tax year, they have reduced the rate so far from 4.81 to 4.41 mils, but this does not yield zero tax growth, it is the annual inflation rate plus 1%, and includes the 0.5 mill debt service passed by referendum. For a change, this looks reasonable. Read below and weep, because the City of NSB is the only taxing authority that seems to have taken a reasonable approach this year.
Bert Fish
•The State of Florida has given the Bert Fish Hospital Board, appointed by the Governor, the right to tax you;
The State of Florida has given the Bert Fish Hospital Board, appointed by the Governor, the right to tax you;•Bert Fish is raising your tax rate by 34% by not reducing the mileage rate;
Bert Fish is raising your tax rate by 34% by not reducing the mileage rate;•Bert Fish collected all of the 21.5% last year for another couple of million;
Bert Fish collected all of the 21.5% last year for another couple of million;•Bert Fish collected $14,500,000 in 2005 and will collect $19,000,000 in 2006.
Bert Fish collected $14,500,000 in 2005 and will collect $19,000,000 in 2006. Talk about taxes going out of sight. We guess Bert Fish needs some of the money to pay its administrator a higher salary, over $225,0000 plus benefits, but did it took the entire rollback last year, a 21.5% increase in taxes for 2005, which netted it a couple of million more than 2004. Why does it need to take the entire rollback this year? It is keeping its current 2.35 mileage rate instead of reducing it to 1.87 mills. This will bring in about 5 million dollars more a year this year, and every year in the future. It taxed you $14.4 million last year and this year it will collect $19 million. Bert Fish, we think, cynically, calculates the County tax increase on assessable property of about 27%, which is the overall County increase, but its taxable area is from Port Orange to Oak Hill and that area has had a growth of about 35%. We did not go to the meeting last Thursday, but we are willing to bet that they did not highlight that the effective tax increase was 35%. Maybe this is a new math calculation. The way we see it, if you take in an extra $5 million on a $14.4 million base it is closer to 32%, than 25%.
In coming elections, we have a chance to dismiss these high tax officials. Think about it. Why should the Bert Fish Board, appointed by the Governor and not elected by you, have the right to take your money and vote in huge tax increases? Why do they need it, and on what will they spend it? Could it be they are not run well, do not know how to negotiate with the health plan providers (after FOUR years it just entered into a contract with Blue Cross), and think that you are just one more voter too stupid to know when you are being fleeced?
How many of you can name even one member of the Board of Directors at Bert Fish? Think about it? Can you find out? Let us know how successful you were. After all, the Chairman's name was in the paper last week.
The School Board (based on numbers available to the Shadow)
•The School Board projected student enrollment for 2006-7 is down by 1000;
The School Board projected student enrollment for 2006-7 is down by 1000;•The School Board Tax increase if last year’s mileage rate is used is will be 24.29%;
The School Board Tax increase if last year’s mileage rate is used is will be 24.29%;•The School Board will take in $65,334,044 more in taxes in 2007 than in 2006. 37,379,156,273 8.259 27,550,607,248 308,714,451 30073908112 248380407 x20324 notes for me I am working on obtaining better info on the vcsb, if no info is forthcoming, go with this.
The School Board will take in $65,334,044 more in taxes in 2007 than in 2006. 37,379,156,273 8.259 27,550,607,248 308,714,451 30073908112 248380407 x20324 notes for me I am working on obtaining better info on the vcsb, if no info is forthcoming, go with this.We are told that the School Board's budget may be subject to some sort of review by the County Council, although the County budget people say no. Since the County is only proposing a tax increase of 19%, perhaps the County Council could prevail upon the School Board to reduce its projected increase of 20% back to a more appropriate number---you know the County's modest 19% tax increase. Interestingly, Volusia County's projection for the increased number of kids in school for this coming year is only about 650 instead of the 1700 or so budgeted for last year. How about having a real rollback instead of a whopping tax increase?
On the other hand, how about telling the School Board to stop building extravagant $100 million dollar schools and let the parents whose kids attend these palaces have enough gas money to take the kids to school. We think that maybe a five percent increase over the inflation factor for the School Board would be plenty. We doubt that many parents in the County got a five percent pay increase this year. We want to see the County Council in the batting box and ask why the School Board needs all these millions of dollars in tax increases this year. Unless we are mistaken, its 2005 budget included money for future needs—more teachers and a reasonable construction fund. How about asking those running to be on the School Board, if they agree that there should be a 20% increase in your taxes? If they say yes, find another candidate, if you care about where your money goes.
BULGING COFFERS AT THE COUNTY
The headline for the Orlando Sentinel on July 27, 2006 is that the County has” bulging coffers” because of all the money rolling in from increased revenue. The headline should have read that it was your tax money because the County Council had voted to take a 19% tax increase and keep $30,000,000 more of your dollars. It’s your tax dollars, not an infusion of cash from a flying saucer. While you are at it, dwell a little on the fact that the library, fire district on South Beach, and mosquito control district are taking a 35% tax increase.
Do not blame us if you do not get active and complain.
Article on how the mill rate works and another statement on rollback.
The School Board
•The School Board projection for 2006-7 student enrollment is down by 1000;
The School Board projection for 2006-7 student enrollment is down by 1000;•The School Board Tax increase is 20%;
The School Board Tax increase is 20%;•The School Board will take in more dollars in taxes in 2007 than in 2006.
The School Board will take in more dollars in taxes in 2007 than in 2006.We are told that the School Board's budget may be subject to some sort of review by the County Council, although the County budget people say no. Since the County is only proposing a tax increase of 19%, perhaps the Council could embarrass the School Board to cut its increase of 20% back to a more appropriate 19%---you know the County's modest tax increase. Interestingly, Volusia County's projection for kids in school for this coming year is only about 650 instead of the 1700 or so budgeted for last year. How about having a real rollback instead of a whopping tax increase.
On the other hand, how about telling the School Board to stop building sumptuous $100 million dollar schools and let the parents whose kids attend these palaces have enough gas money to take the kids to school. We think that maybe a five percent increase over the inflation factor for the School Board would be plenty if, for no other reason, we doubt that many parents in the County got a five percent pay increase this year. We want to see the County Council in the batting box and ask why the School Board needs all these millions of dollars in tax increases this year. Unless we are mistaken, its 2006 budget included money for its future needs—more teachers and a reasonable construction fund. How about asking those running for office on the School Board if they agree that there should be a 20% increase in your taxes? If they say yes, find another candidate if you care about where your money goes.
THE STEALTH TAX
The franchise tax collected by the various jurisdictions from the utilities supplying services is levied against the gross receipts of the utility. Here in Volusia County the tax is paid by both a municipally owned utility like the New Smyrna Beach Utility Commission to New Smyrna Beach and Florida Power and Light to cities like Edgewater or Port Orange. Each jurisdiction also taxes the individual user: New Smyrna Beach has a 9% tax and Volusia County has a 10% tax on users in the unincorporated portions of the County.
The gross tax has grown as the cost of energy to generate electricity has risen because of fuel cost —whether, coal, oil or gas. The cost of oil and gas, which are the predominant fuel used in Florida, have risen astronomically in the last couple of years and there is no indication that it will drop significantly. These energy costs are automatically reflected in the rates since for many years all utilities have had the ability to pass increased fuel costs to the consumer through a tariff method called the “fuel adjustment clause.” Look at your utility bill and you will see that the fuel adjustment charge probably exceeds the charge for your monthly. While you are looking at your bill, check the added tax levied by your local government.
The question is; Why should the franchise tax be charged on the amount attributable to the fuel adjustment charge? First, from a rate setting perspective, the purpose for the fuel adjustment clause is to provide the utility a way to immediately recover a large component of their costs without having to file for repetitive rate increases to recover these costs. If the adjustments did not exist, there would be applications filed every time there was an increase, but decreases would generally only occur if users filed for a reduction of rates. Either way, the regulatory agency would be overwhelmed, and the charges ultimately, would still be paid by the consumer with an extra charge for interest on borrowed money. In exchange for its monopoly, the utility agrees to accept a regulated rate of return on its invested capital and cost of operation that are set by a state regulatory agency.
So why with this scheme of guaranteed return without the need for the utility to file for rate increases or decreases are the municipalities receiving a windfall on what, for the consumer, is a cost that is simply passed through by the utility. It is bad enough that the increases are passed through, but the there is no rational basis for taxing the consumer additionally for the passed through costs. In New Smyrna Beach the city will collect over $1 million additional taxes solely as a result of rate increases based on these passed through costs for fuel to generate the electricity we buy. Another downside, is that if the municipality depends on this revenue and fuel costs go down, the cities will have shortfalls in their budgets. And finally, it hides the fact that it is a tax paid by the taxpayer of which the taxpayer is usually both unaware that he is paying, and had no voice in determining whether the municipality needs the extra funds.
THE FEDERAL GOVERNMENT
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Food for thought!!!
Charley Reese is retiring. His last column is this one. I know many will miss this southern gentleman.
He had a great run and we are all better off for it. Farewell, Mr. Reese, and thank you. Charley Reese has been a journalist for 49 years.
Be sure to read the Tax List at the end.
This is about as clear and easy to understand as it can be - read it!!
The article below is completely neutral, not anti republican or democrat
Charlie Reese, a retired reporter for the Orlando Sentinel, has hit the nail
directly on the head, defining clearly who it is that in the final analysis
must assume responsibility for the judgments made that impact each one of us
every day. It's a short but good read. Worth the time. Worth remembering!
545 vs. 300,000,000
545 PEOPLE --By Charlie Reese
Politicians are the only people in the world who create problems and then campaign against them.
Have you ever wondered if both the Democrats and the Republicans are
against deficits, WHY do we have deficits?
Have you ever wondered if all the politicians are against inflation and
high taxes, WHY do we have inflation and high taxes?
You and I don't propose a federal budget. The President does.
You and I don't have the Constitutional authority to vote on
appropriations. The House of Representatives does.
You and I don't write the tax code, Congress does.
You and I don't set fiscal policy, Congress does.
You and I don't control monetary policy, the Federal Reserve Bank does
One hundred senators, 435 congressmen, one President, and nine Supreme
Court justices equates to 545 human beings out of the 300 million are
directly, legally, morally, and individually responsible for the domestic
problems that plague this country.
I excluded the members of the Federal Reserve Board because that problem
was created by the Congress. In 1913, Congress delegated its Constitutional
duty to provide a sound currency to a federally chartered, but private,
central bank.
I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes.
Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.
What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits....... The President can only propose a budget. He cannot force the Congress to accept it.
The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? It was Nancy Pelosi. She was the leader of the majority party. She and fellow House members, not the President, can approve any budget they want. If the President vetoes it, they can pass it over his veto if they agree to.
It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted -- by present facts -- of incompetence and irresponsibility. I can't think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.
If the tax code is unfair, it's because they want it unfair.
If the budget is in the red, it's because they want it in the red.
If the Army & Marines are in Iraq and Afghanistan it's because they want
them in Iraq and Afghanistan.
If they do not receive social security but are on an elite retirement plan not available to the people, it's because they want it that way.
There are no insoluble government problems.
Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like "the economy," "inflation," or "politics" that prevent them from doing what they take an oath to do.
Those 545 people and they alone, are responsible.
They and they alone, have the power.
They and they alone, should be held accountable by the people who are
their bosses.
Provided the voters have the gumption to manage their own employees.
We should vote all of them out of office and clean up their mess!
Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.
What you do with this article now that you have read it......... Is up to
you. This might be funny if it weren't so true.
Be sure to read all the way to the end:
Tax his land,
Tax his bed,
Tax the table,
At which he's fed.
Tax his tractor,
Tax his mule,
Teach him taxes are the rule.
Tax his work,
Tax his pay,
He works for peanuts anyway!
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.
Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.
Tax his cigars,
Tax his beers, If he cries
Tax his tears.
Tax his car,
Tax his gas,
Find other ways
To tax his ass.
Tax all he has
Then let him know
That you won't be done
Till he has no dough.
When he screams and hollers;
Then tax him some more,
Tax him till he's good and sore.
Then tax his coffin,
Tax his grave,
Tax the sod in which he's laid.
Put these words
Upon his tomb,
Taxes drove me
to my doom...'
When he's gone,
Do not relax,
Its time to apply
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (almost 50 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world.
We had absolutely no national debt, had the largest middle class in the
world, and Mom stayed home to raise the kids.
What in the hell happened? Can you spell 'politicians?'
I hope this goes around THE USA at least 545 times!!! YOU can help it get
there!!!
GO AHEAD - - - BE AN AMERICAN!!!
THIS IS TRUE FOR YOUR LOCAL ELECTED OFFICIALS AS WELL!
