Ask Not For Whom The Cash Register Tolls

BY MIKE RYAN, MAYOR OF SUNRISE

 

Do you know how sales tax dollars generated in your city or town are divided?

Under Florida law, for every dollar of sales tax generated, 91.2 percent goes to the State, with 8.8 percent is then set aside in a Fund for all the municipalities and Broward County to divvy up.

In Broward County last fiscal year, the total sales tax dollars set was $161,000,000.

How was this money allotted?

Maybe where the sales tax was generated?

Or, where the greatest infrastructure investments are made to support retail establishments who generate sales tax dollars?

Or, where the greatest economic incentives or support are offered by cities to provide a strong retail base?

None of the above.

Florida Statute Section 218.62 mandates that the 8.8 percent sales tax dollar Fund is divided amongst municipalities in a county, NOT based upon where the sales tax was generated. Instead it is split using a statutory formula solely based upon population numbers.

As a result, Sales Tax is truly a regional endeavor.   The better the all the cities do in a county, the more the individual cities receive.

By state law, the County government first takes a large chunk of the dollars.  For 2011-2012, Broward County received $65,000,000 of the $161,000,000 in sales tax revenue set aside.

The remaining dollars are then split amongst the 31 municipalities based upon their respective population without regard to where the dollars were generated.  On the high end, Fort Lauderdale received $9,166,000; on the low end Lazy Lake received $1,344.

 

Sales tax distribution for Broward County and its cities

November, 2011 thru October, 2012

Broward Co. BOCC            64,840,663.72

Coconut Creek            2,935,370.12

Cooper City                   1,589,943.31

Coral Springs               6,718,250.48

Dania Beach                 1,641,944.12

Davie                             5,099,771.26

Deerfield Beach           4,158,738.67

Fort Lauderdale           9,166,037.64

Hallandale Beach         2,058,259.27

Hillsboro Beach              103,907.21

Hollywood                     7,803,173.96

Lauderdale Lakes        1,808,533.52

Lauderdale-by-the-Sea   335,849.11

Lauderhill                      3,704,332.29

Lazy Lake                               1,330.44

Lighthouse Point             573,679.43

Margate                         2,958,609.56

Miramar                         6,775,776.57

North Lauderdale        2,276,396.97

Oakland Park                2,294,719.03

Parkland                        1,333,645.11

Pembroke Park               338,117.41

Pembroke Pines         8,542,383.53

Plantation                      4,704,413.66

Pompano Beach            5,526,490.04

Sea Ranch Lakes                37,196.06

Southwest Ranches         407,041.87

Sunrise                            4,678,542.84

Tamarac                            3,351,277.88

West Park                           783,448.00

Weston                              3,619,308.42

Wilton Manors                   646,098.60

  Total Cities                       95,972,586.38

 

Naturally, as you go through the list, there are some apparent anomalies.  For instance, Plantation received more sales tax dollars than Sunrise, a place where the Sawgrass Mills Mall represents one of the largest and most productive retail malls in the entire United States.  Surely there are others.  But the lesson is — when one city generates more sales tax dollars, others municipalities do better, too.

So much of what we do in a county makes us dependent upon each other  – from smart economic development and re-development plans to public safety performance, it is clear, even if only because state law forces us, we are bound together as a county and residents.

Regionalization is not just a concept for HazMat teams or E911 Consolidated Communications, it is the nature of our collective economic performance as well.



10 Responses to “Ask Not For Whom The Cash Register Tolls”

  1. Mike Jacobs says:

    That is why we all need to work together to make Broward County the best place to live and the best place to visit in Florida. Kudos to Mayor Ryan and the City of Sunrise for leading the way with economic growth in their city. With Sawgrass Mills and the Sawgrass Corporate Park, Sunrise is a shining example of progress in S. Florida.

  2. Watching the Race says:

    Mayor,

    I agree that it is a regional economy. What’s your point? You specifically mentioned that your city has sawgrass mills which collects a lot in sales tax. Is this a Pineseque quest to get more tax dollars? Because doesn’t Sunrise collect property taxes on the real and business property including things like office furniture and computers? Doesn’t Sunrise collect building permit fees? Business license fees?

    As for sales tax collection. I imagine sawgrass mills collects a ton of tax dollars but my guess the 110 tower downtown or Fazio Properties collects more sales tax (sales tax collected on commercial rent).

    Sales tax in this state is designed as a state tax to prevent a state income tax.

    As for it being a regional economy, once again, I agree. Using your Sawgrass Mills example. How many of the customers at sawgrass mills are Sunrise Residents? My guess would be a tenth of a percent. Now how many employees at the mall are Sunrise residents?

    The benefit of having a mall in your town is not to collect sales tax. You collect the property tax, permit fees and get your residents employed.

  3. just one vote says:

    Mayor Ryan is the best and knows more than many electeds put together. Mayor Ryan would you like to be our Governor??
    Apportionment is not the way I thought the revenue was divvied up. FLL is always whining about their (lack of) revenue, biggest city in county, blah, blah, blah. I spend as little as possible in fll. Now I see it does not matter in the least. Ditto the gas taxes.
    so please confirm how the state, county and city taxes are distributed from the fees on our cell, land lines and comcast bills are divvied up? The same based on apportionment/population?

  4. Tax Watcher says:

    Ryan had nothing to do with bringing in sawgrass mills mall or any of the economic growth in the city. His legacy will be the mayor that depleted all the city reserves

  5. Commissioner Angelo Castillo says:

    Makes perfect sense and forms the basis for a countywide economic development business plan in which cities are active stakeholders.

    Angelo

  6. Watching the Race says:

    Angelo,

    I don’t think you need to advocate taking money out of county coffers. That may inhibit your family’s ability to continue to suck the 250K plus SES Pension and Benefits from the county teat, via BSO.

  7. Pines Resident says:

    Angello, nobody in Sunrise or any other City cares about what you think. what have you ever done significant for your own City. We all know you like to take County dollars for personal gain??? 250K worth. Plus, another 30K from us in Pines. It will be so nice when you are out of office.

  8. just one vote says:

    Is it time to revise Florida Statute Section 218.62? No wonder many municipalities don’t need or want commercial development in their town borders – they get a cut of generated outside their borders based on population within them. So the only ‘value’ (if you can call it that) is from the property taxes on non-residential properties. And when they are vacant, they are generating no sales tax or tangible tax. Compare the tax revenue to Weston and Parkland with this statute based formula. Then look at all the tired, run down, vacant or under occupied commercial space in the county, whether US 1 or 441. (And it sounds like Mayor Ryan wants to see Sawgras and other commercial properties at close to 100% occupancy).
    Probably lots of reasons why the statute would not be revised as they must be many other counties throughout the state that have revenue from the apportionment.
    Great write-up as always from Mayor Ryan.

  9. Duke says:

    Broward County has far too many municipalities for an area it’s size.

  10. Commissioner Angelo Castillo says:

    Forgot to mention that Broward Alliance and Broward Workshop have consistently been reliable advocates for regional economic development planning. They should be part of any discussion in that regard and have tried for years to bring it about.

    Angelo

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