CHAMBER MEMBER SURVEY

AUGUST 2005

Volusia County staff is considering whether to reduce its current 12-cent-per-gallon gas tax to 7 cents in exchange with a new half-cent sales tax for transportation projects.

Any such change would have to go on the November 2006 ballot. Volusia’s sales tax is currently 6.5 percent (.5 cent approved by voters in 2001 referendum for school construction/renovation). It is estimated that a new half-cent sales tax increase would generate $27 million more annually than keeping the status quo gas tax. Over 5 years, Volusia consumers would spend about $150 million more in sales tax that the gas tax would raise.

Staff says extra money is needed because increasing land acquisition costs is outpacing gas tax revenue. The advantage for cities is that sales tax revenue is more flexible i.e. gas tax revenue can only be used for building new roads or resurfacing existing ones while sales tax revenue could be used for roads plus sidewalks, trails, road-beautification projects, and commuter-rail. However, it can be said that sales tax is regressive as it costs low-income individuals a greater proportion of their income for everyday needs.

Volusia’s total gas tax is 12 cents per gallon (one of the highest in Florida).

1. Should the County reduce its gas tax from 12 to 7 cents and replace it with a half-cent sales tax? Yes 50.7 percent____No 49.3 percent

Comments

• The sales tax will also catch the tourist money. The money that they spend shopping in the community.
• Rather than reduce the 12 cent tax - why not change the requirements for spending -- Raising the sales tax is detrimental to overall growth in my opinion.  Personally I support HR 25 the Fair Tax Proposition. Which will probably never happen.
• Adding more revenue to an already bloated county bureaucracy will not make this a better county. It will not make our county more competitive in luring new industries. Enough is enough. Adding to the sales tax will not help tourist related businesses. We have given up enough pizzas in this county already to fund every liberal project the council can dream up.  How many trails are enough? How many beatification projects are enough? How much land does county government need to buy?  Why should the county be funding commuter rail? Stop county government sprawl!
• With gas at $2.40 per gallon a nickel is a 2% reduction.

• I am strongly opposed any proposal which raises the sales tax. This will affect retailers in two ways, first the customers will pay more in tax which can deflate sales. Then they will be required to pay the extra rent tax which increases their occupancy costs and reduces their profit margin. It may also deflate rents because of the tenants increase occupancy costs which in turn reduces value of the property.
• Not only NO, but ---- NO. See Hasteraks column. What she does not point out, the local option sales tax does not apply to purchase amounts over $5,000, but IT DOES apply to commercial leases over $5,000. The implications are much more far reaching than she imagined.
• No, you have got to be kidding. The county has more money than they know what to do with. With the added increase in the proposed sales tax they'll have even more. Keep the tax the way it is. It is the drivers that are paying for it. 
• No, we are already over taxed as it is. I am so tired of our politicians just raising taxes anytime they feel like it. This will hurt everyone, especially the poor & businesses. That is not the answer. Try living within your existing (astronomical) budget like we, the people,
  have to do. The American people should not have to pay for the bad policies of our government. I spend my money wisely because I earn it with long hours and hard work. What has the government done for me lately?
• It would have been nice to see some more roads paved with the money already collected. What is going on with Ridgewood? It is disgusting we have to live like this with the amount of money we pay.
• No, Too much flexibility for tax usage.  What percentage of non-residents pay gas tax vs. sales tax? 
• The astronomically high gas tax is a tangible, present hardship on low-income individuals than an additional 1/2 cents sales tax. 
• NO    N  -  O   NO!          Reduce the gas tax to 7 cents and leave sales tax where it is and DEMAND greater accountability where the revenue is spent.
• Yes, if it truly generates additional funds and is able to be used for a broader base of potential infrastructure in additional to what the gas tax is allowed to be used for. A half cent sales tax increase seems to be less to the average consumer on a day to day basis vs. five cents each time they pull into the gas station. Consumers, I believe would like to see gas prices decline. In the long run, if changed, would allow consumers to spread the half cent tax over a variety of consumer goods and they would not feel they are being hurt as much in one single purchase (i.e. at the gas pump).
• No, as a hotelier I am opposed to lowering the gas tax and increasing the sales tax. Tourist coming to DB now pay 6.5% sales and 6.00% bed tax=12.5% This is one of the highest in the state. If we elected to raise it by a half of a percent, I believe we would have the highest combined tax in the state. This could have a huge negative influence on group and convention business that we hope to lure here after we complete the Ocean Center expansion. Guests have to pay this on a hotel stay that can be $1000 or more as compared to .05 cents on a $40 gas purchase.

The Volusia County Charter Review Commission will begin meeting in July to discuss various topics. Growth Management is already an obvious topic. This commission shall conduct public hearings throughout the County in coming weeks to identify issues it should consider. From there, subcommittees will be established. The Commission will finish their work in August 2006 by proposing amendments to the Volusia Charter which will appear on the November 2006 ballot.

2. What subject matters should the Charter Review Commission concentrate on for establishing subcommittees?  

• Change the entire system of imposing impact fees to a system whereas "every Real Estate Transaction" pays a fee - thereby spreading the costs to everyone instead of just to new buyers.
• Beach Driving accessibility issues.
• Study the effects of the explosive area growth on the aquifers.
• Storm Water Management. If we have one property being damaged by rising or standing water, that is one too many.
• Crime: Shame on us for the negative national headlines regarding Volusia County. We can do better.
• Growth Management (9 responses). We have the talent to solve the Countys challenges.
• Our focus should be on determining how we can make improvements to areas that should be or future such as the historic section of Beach Street (move homeless shelters, focus on building a great area). We should also be thinking strongly about how to build improvements that would attract more higher-end vacationers/retirees. More money into our economy is going to create new jobs and solve some of the problems that Daytona Beach is facing. Finally, there should be some serious focus on trying to improve our name. While Daytona Beach has massive brand recognition there is NO brand equity. Everyone I know from the rest of the country knows more or less where Daytona Beach is but everyone thinks of it as a place that they would not want to live close to. There must be a way for us to correct that as it eliminates huge income potential for our community through lost tourist dollars associated with family visits and through reduced land value because of a discount applied to our area compared to the rest of the state.
• Half-way house for juvenile sex offenders 
• Half-way house for adult sex offenders
• West Volusia Humane Society funding  
• Review of new condo plans especially regarding the environment.
• A committee to review the special events held in the area. 
• Strong chair 
• Subcommittee on Reducing benefits for government employees
• Subcommittee on Reducing Taxes and develop means to provide greater accountability where tax revenue is spent. 
• to develop an educational method to teach some plain old common sense to everyone that spends our tax dollars
• making are roadways more attractive, better plants and trees,
• reduce the amount of re-zoning, exceptions, etc in order to control urban sprawl.
• increasing public parks on the beach.  The existing ones are always full, which indicates a need for more. 
• aggressively marketing the Clyde Morris / Williamson area (east of I-95) to clean, high wage businesses and industries.
• Candidates for Public office should not have to resign their position to run for office. 
• Increase Storm water drainage facilities throughout the county.
• Term limits for County office holders should be in the form of a referendum and sent to the voters.