Polk County Commissioner Bill Braswell proposed replacing an existing half-cent indigent healthcare sales tax with a 1% infrastructure sales tax to help offset potential property tax revenue losses.
The Problem: Anticipated Revenue Shortfall
If Amendment 3 passes on the Florida ballot, Polk County projects it could lose roughly $135 million out of the $400 million it currently collects in property taxes.
The Proposal: Tax Restructuring
- Healthcare Tax Swap: The county currently collects a half-cent indigent healthcare sales tax ($80M–$90M annually) that serves about 1% to 2% of the population and holds around $100 million in reserves.
- 1% Infrastructure Tax: Replacing the healthcare tax with a 1% infrastructure sales tax would generate approximately $180 million annually.
- Shifting the Burden: Because sales taxes are also paid by visitors, tourists, and commuters, Commissioner Braswell estimates that local property owners would see a net reduction in tax impact—noting a homeowner currently paying $1,000 in property tax might pay closer to $250 to $300 under the sales tax model instead.
Challenges & Next Steps
- State Restrictions: Current Florida law restricts infrastructure sales tax revenue to capital projects rather than general operating expenses, so state legislative adjustments or rule flexibility may be required.
- Timeline: Whether Amendment 3 passes or fails, county commissioners would need to vote on placing the sales tax proposal on a ballot. Under Florida rules limiting sales tax referendums to general election years, local voters wouldn’t formally vote on the referendum until 2028.
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