HALF-CENT SALES TAX REFERENDUM FREQUENTLY ASKED QUESTIONS
Why is there a need for additional funds for the School system?
The School Board recognized several years ago that the funds available for continued maintenance of the entire
school system was not adequate to cover all that needed to be done. From the recession that began in 2006,
property values decreased from $6.8 billion to $4.8 billion while the State mandated a drop in the millage rate
the school board could charge 8.135 to the current level of 7.185. This included a .5 mil drop in the capital
funding portion from 2.0 mils to 1.5 mils. In addition, under a plan to remove portable classrooms and replace
them with permanent building, the School Board floated a bond issue that increased their annual debt service
from $1.6 million per year to $5.4 million.
Where does the money come from to build and maintain schools now?
Local sources come from property taxes. State sources come from the Public Education Capital Outlay (PECO).
PECO funds have decreased from $1,091,748 in 07-08 to a current level of $310,543.
What is the Half-Cent Sales Tax?
The School Capital Outlay Surtax is a ½ penny sales tax on some goods and services that if approved by the
voters on August 30, 2016 would be levied for 20 years.
What would the additional funds be used for?
Funds generated under the ½ cent can only be used for capital expenditures and not on operational needs
(salaries, supplies, monthly operational expenses, etc.). The School Board has prepared an extensive 20 year
capital plan that includes safety and security projects, new buses, technology upgrades, renovations, repairs and
general upgrades to the physical plant of each school, additional classrooms at some schools and the possibility
of school expansion in the future.
Who pays this tax?
Everyone who buys taxable goods in Highlands County, including tourists and part-time residents. It allows the
funds to be raised for needed capital improvement without the entire burden on the property owners.
How much will this tax cost me?
A family of 3 with average income of $45,000, the estimated tax would only be $54/year or just over $1/week.
Will necessities be exempt from the sales tax?
Yes. Necessities like food, medicine, long term rentals, dental & medical care will all be exempt as they are with
the current sales tax. For large purchases such as cars, only the first $5,000 will be assessed the additional tax.
How much will the Half-Cent Sales Tax generate for the school system?
It is estimated the ½ cent sales tax will generate approximately $4.2 million dollars a year.
How many school districts levy a half-cent sales tax?
17 school districts do: Bay, Brevard, Calhoun, Escambia, Flagler, Hernando, Jackson, Leon, Liberty, Manatee,
Monroe, Orange, Polk, St. Johns, St. Lucie, Santa Rosa and Volusia.
What will the funds be used for?
-Construct new wings at Lake Country and Park Elementary
-Build bus facility in Lake Placid
-District wide projects:
Fencing, HVAC, roof projects, carpeting, correct drainage issues, repair covered walk ways, ADA
standards, parking and paving, fire alarms, security cameras, computers and workstations, network
switches, printers, white boards and projectors, software
-Replace aging bus fleet
Why can’t the School District cut administrative salaries and other programs to avoid raising the sales tax?
Funding is comprised of two major categories: Operational and Capital. There is a wall that exists between
these two types of funds and they cannot be interchanged. The table below shows what types of items are
included under each:
What are the advantages of using a sales tax?
The tax is paid by everyone, not just homeowners. It is paid by people that may not pay property taxes including
residents and those visiting our County.
I don’t have children or grandchildren in the school system, should I support this referendum?
The quality of our community rests upon the quality of our educational system. Even though you may not have
a child in the school system, those students will become productive members of our community, working in all
facets of it. Public education offers every child in the community a chance at an education. We need to provide
a safe and secure place for them to learn with the most current technology available to keep the up with current
trends. Most eventually go into the work force and pay taxes. Their tax dollars help to pay for the police who
patrol our streets, the supplies and workers who build our roads, the electricity that lights our traffic and street
lights, the libraries, ambulance services, etc. that all of us benefit from. Educated children grow up to become
responsible citizens paying taxes for Social Security, Medicare and prescription drug plans. In addition, as new
companies move to our area, one of the primary attractions is a quality educational system for their future
employees. We all benefit when our society is well educated.
What can I do to help?
First and foremost is educate yourself on the value of our education system. Next is to spread the word about
the need for strong, safe and secure schools. Please visit our website at www.BetterSchoolsHighlands.com and
our Facebook page www.Facebook.com/BetterSchoolsHighlands and share with friends and family. Lastly, get
out and vote and make sure all your friends and family are registered to vote. Early voting is Aug. 20-27 and the
primary election is Aug. 30.
How is the marketing of the half cent sales tax campaign paid for?
All funds for the promotion of the half cent sales tax are from private donations. No School Board/taxpayer
funds have been or will be utilized.
www.BetterSchoolsHighlands.com