Flagler County government is disseminating false information as it seeks letters of support from Palm Coast, Flagler Beach, Bunnell and Beverly Beach to increase the county’s sales tax by half a percent.
“It is estimated that almost 40% of the funds collected will be paid by non-residents, with 100% remaining in Flagler County,” County Administrator Heidi Petito wrote the cities last week.
County commissioners have been repeating the claim, as Commissioner Dave Sullivan did this week at a business organization presentation in Flagler Beach, swaying Flagler Beach City Commissioner Jane Mealy.
“When I first heard about this, it sounded to me like the County would reap all the benefits and, therefore, I was opposed to it,” Mealy said on Tuesday. “This morning, Commissioner Sullivan did a brief presentation to the Flagler Beach Business Bureau’s quarterly meeting and explained that each municipality and the County would receive a proportional share based on population. If that holds true, and in addition to the fact that a good percentage of the proceeds would come from tourists, I will more than likely vote to send the County a letter of support.”
But the “almost 40 percent” claim is false. It was not researched by the school board, the the board, too, mis-used it.
The claim (“Would you support the continuation of the half cent, if you knew 40% is paid by visitors and non-Flagler County Residents?”) was made in a survey disseminated by the Flagler Education Foundation last year when the foundation was supporting the continuation of the district’s half-cent sales surtax.
Asked about the claim’s methodology, Theresa Rizzo, the foundation’s executive director, said the foundation was only transmitting the information on behalf of a political action committee supporting the renewal (though Rizzo was closely connected with the committee), Funding Flagler’s Educational Future.
After FlaglerLive’s inquiry, the survey added a footnote: “*Percentage derived from 2019 Rockford Analysis published by Visit Florida and compared to 2019 sales tax collected.”
The footnote was wrong.
First, nowhere does the analysis claim that anything near to 40 percent of sales tax revenue anywhere in Florida–the second leading tourist destination. in the United States–is generated by visitors. The report notes that “Visitor-generated
sales taxes constitute 16% of all sales taxes collected in the state.”
Second, the Rockport report is a statewide analysis with only a peripheral bearing on Flagler County. The 16 percent figure is heavily skewed toward tourism hubs like Orlando and South Florida, with many other counties’ percentages likely much lower. Flagler County is never mentioned in the report. (See the full report here.)
Third, even if visitors accounted for 30, 40 or 80 percent of sales tax revenue in Flagler County, it does not in any way change what local residents must pay: the sales tax a local resident must pay on a car or a textbook or a restaurant bill will not be any different because 10,000 or 100,000 people visited the county that month.
Nevertheless, the 40 percent figure continues to be a selling point as the county begins its lobbying of cities for the new tax.
The Flagler Beach City Commission did not ask to be placed in that position. But like it or not, it will be the first of Flagler County’s cities to be made to respond to the county’s request when it discusses the issue at its meeting Thursday.
The County Commission is asking for letters of support from the cities eve though the commission itself has not committed to such an increase. It is essentially using the cities’ reactions as a measuring stick before risking its own neck.
The reaction is already tepid.
“I personally do not support the tax increase,” Flagler Beach Commission Chairman Eric Cooley said. “Flagler Beach recently during budgeting had a similar discussion on the proper utilization of the money we receive from the gas taxes accomplishing the intended purpose. I think before taxes are raised, a deep dive into potential budget decisions that can be made to close the gap.”
Palm Coast on Tuesday dropped plans to impose a new utility franchise fee on electricity bills after a torrent of opposition, and FPL telling the city that it would not agree to the rate being guided by a referendum. A thin majority of council members favored the fee, but conditional on giving residents a chance to weigh in on the rate, through a referendum.
The sales tax is currently 7 percent in Flagler, with half a penny generating revenue for the school district and another half generating revenue for the county and the cities.
County government attempted to raise the sales tax by half a penny, to 7.5 percent, two years ago. Then-County Administrator Jerry Cameron wanted cities to weigh in, but did not risk much himself. Palm Coast shut the proposal down.
Like Palm Coast, the county is facing shortfalls in its abilities to pay for road maintenance and repairs. At a commission meeting last week, commissioners again decided to give the sales tax increase another go, directing County Administrator Heidi Petito to send a letter to each municipality, asking for support. (See: “Tone-Deaf Flagler County Wants Palm Coast and Other Cities to Support Sales Tax Increase.”)
Petito sent the letters the next day. “As our community continues to grow, and the cost of maintaining and constructing roads increase, these revenues simply cannot keep up,” Petito said of gas tax revenue currently paying for road maintenance.
“As you know, anything tied to Ad Valorem ( property tax) has residents paying additional costs with little to no control,” Petito wrote. “On the contrary, 1/2 cent sales tax is based on purchases made, in which the consumer controls.” It isn’t clear what Petito means by saying that consumers “control” what they’d spend sales tax, other than to suggest that somehow consumers could spend less on their daily needs if they want to reduce their sales tax burden.
The $9.7 million in new revenue would be split between the county and the cities, but not in proportion to population, as had been the case with a similar tax until 2012. The county would take 45v percent of the revenue (45 percent). Palm Coast would take just under 50 percent ($4.8 million). Flagler Beach would get 2.7 percent ($264,000) and Bunnell 1.9 percent ($180,000).
“I don’t like the distribution of that tax,” Flagler Beach City Commissioner Rick Belhumeur said. “If it’s being distributed as they claim, according to population, why is the county keeping the majority of the money? It should be distributed at the same rate that it is generated by the county or the municipalities.”
When Palm Coast initiated a half-penny surtax in 2002, it did so by popular referendum, and for 10 years. At the time, the money was distributed according to population, with Palm Coast getting a much larger share. When the tax came up for renewal in 2012, the county sought to change the proportionate distribution, because it wanted a larger share.
Palm Coast balked, refusing to support the county in a renewal referendum. So the county opted to unilaterally impose the tax by a supermajority vote of the county commission, and changed the distribution ratios. The additional half penny increase would adopt the same ratios.
“I don’t think it’s fully appropriate to back the city into a corner of a potential lobbying position for a new county tax that was never a city initiative,” Cooley, the Flagler Beach commission chairman, said. “Unless new information is presented at the meeting, I do not plan on recommending the city write any letters. If the city was to draft the letter, then the city becomes the reason it would get voted yes by the county. I believe votes should be based on merit of the tax or because it represents the will of the voters. In this case, I do not feel this meets either criteria.”
Duane says
Another DUH moment for Flagler County.
While I “may” support a .50 cent sales tax (maybe! depending upon the actual use of the funds) they are using the 40% statistic that came from an actual tourist visited county. If anyone thinks Flagler County is a major tourist area in the State of Florida, you are wrong. Think about places like Orlando, Miami, Tampa and Jacksonville, I may even add Daytona Beach to that list. They can make those statements. Flagler County, at its best, is a pass through community of visitors, maybe, stopping by on their way to spend their money in another community. We would be lucky if Cracker Barrel experienced an increase during special event weeks in Daytona. Let’s think about it folks, how many hotels are lining the street in Flagler County attracting visitor from another state. Someone needs to call out the county manager for providing the elected officials this information and than question the elected officials for not realizing this statistic is false. Again I will mention, look at the spending, not the revenue.
BLINDSPOTTING says
Thank you Eric Cooley, the City got the message of the will for “we the people”, last week
now the County should get the same message and stop with their Petito “doublespeak”.
Ban the GOP says
you mean the republican leadership cites and believes false information……… you have to be kidding.
Me says
Vote these Republicans out of office. They are constantly punishing the people for their mistakes.
Between the City of PC and the County we need all new officials, ones that know how to run the government correctly.
A Real GOP says
We have RINOs in the Flagler GOP! ‘WE the People’ must clean out the Carpetbagger RINO people our Flagler County GOP! STOP the Westward Expansion of the 40 ft wide (the carpetbaggers lot size) lots that the Palm Coast Mayor is Promoting with the “ITT Plan”( there is NO record of a “ITT Plan” in the Palm Coast Planning and Zoning Office)! ‘We the People’ will NOT be GASLIGHTED by a RINO Mayor!!!
Ben Hogarth says
If my math is correct, only 22 (of 67) counties in the State do not currently levy the maximum sales surtax (of 7.5%), of which, Flagler is one. Most of these counties are coastal, particularly south and central Florida. It’s important to note that only 1% of the 7% levied in Flagler was an “optional surtax” adopted by the County / Cities at some point. The State Department of Revenue handles the collection and distribution of these funds for the local governments. That distribution model is dictated in statute and is customarily determined by population distribution. This is very common for most revenue sharing models at the local level.
I’m not sure it is a fair criticism to say that the 40% number that has been thrown around is false prima facie (on its face). This is very much a fluid number that doesn’t just vary from county to county, but also year to year as tourism experiences different amplitudes of change. Some years in Flagler, perhaps that number is even greater than 40% – while I’m doubtful of this, you have to start to wonder if we are splitting hairs, here. Hear me out…
The problem (as some of you may have heard me say in years past) is that Flagler County spent more than a decade, under a previous administration, poorly managing finances and capital expenditures. We saw this with the Sheriff’s operations (centers), Plantation Bay (utility), and the seemingly unending money pit of parks and sidewalks (and illegal property use agreements), etc. None of this was balanced with over-time revenue generation. If this county were a business, I’d rate you an F for prior financial performance – and not for “Flagler.”
But Flagler will remain is a rather dire financial situation for many years to come due to previous (mis)management between elected and non-elected officials. I think the residents in Flagler need to accept the reality and consequences of their electoral choices from years past. It IS good to see the management situation has changed with time and new captains at the helm, but it seems the local politic has not. No one wants a tax increase, but tell me residents of Flagler – how has that worked for you over these many years? Florida is sitting at 3x the national average of homeowners insurance rates, there is a surcharge (fee) for just about everything we do (so the creative accountants don’t have to call it a tax), and pretty soon – there won’t be an insurance market at all in Florida. At some point, the average citizen needs to realize that not every tax-like consequence is called a tax, and that perhaps – some taxation is better than others.
The sales surtax is one such tax. Why? Because if you can shift even 5% (or maybe actually 40%) of the burden from strictly residents to both residents and visitors – why wouldn’t you? Do you really believe that turning down this additional tax is going to drive your costs down? DO you really believe that the absence of an additional .05 cent tax on every dollar in sales is going to stop local governments like Flagler County from having to fee or tax you another way to make up for revenue they can’t otherwise generate? Most of the time that ends up being absorbed by the Ad Valorem tax – which is 100% county resident burden.
Because if you think you can make enough cuts to account for future service needs, maybe start with your biggest bloat – police services. If you aren’t willing to make cuts to that (sheriffs) operation, then maybe it’s time to accept a new (sales) tax and move on. So, to any of the political leaders (and voters) who think defeating a sales surtax initiative is a “win” for the taxpayer – please, tell me how you think you are winning. As a public administrator, I’d love to know whatever it is you know, that I don’t.
FlaglerLive says
The sales tax in Flagler is currently 7 percent .
Ben Hogarth says
FlaglerLive is correct as my first sentence probably should have been more clear to say Flagler is one of 22 counties that do NOT levy the maximum 7.5% tax. In other words, Flagler levies 7% while most counties in Florida levy the maximum 7.5%.
Tom Hutson says
Ben, as a Public Administrator you know that the only real leverage any taxpayer has in controlling their elected officials is through their vote. The taxpayer does not want to tax themselves; they vote NO. Truly there have been mistakes made in electing tax and spend officials, all of which I am sure stated they would spend their money wisely. As you pointed out that has not happened. Why should Flagler taxpayers “TRUST ME” I’ll spend your money wisely now?? Budgets have been tight, where did all the Federal Money go that was allocated to Flagler County?? This new “Captain “and Administration have been in office long enough to correct those past mistakes. They had no problem spending $400,000.00 on a new Mobile Command Center, a New Boat, suggested spending $10 million on a New Park, $10million on a new Airport Center, a $10million on a New Welcome Center. Taxpayer money spent wisely on “Wants” or on “Needs”???
As for the Florida Homeowners Insurance rates, you know they are set and approved by the State of Florida, again elected officials looking out for our interest?? These high rates were not caused by surtax issues.
One thing I agree with you on is stopping the surtax will not stop our tax and spend officials.
The other item of concern is making cuts to the sheriff’s Budget. The sheriff’s Budget is not above review. What’s wrong with “Justifying” all aspects of the county budget?? If its out of line the commissioners should say so. Another word for “Accountability, “if the sheriff doesn’t get what he wants he may sue in court, ok so what?? Has it ever happened??? Questioning the sheriff’s budget some will say all you want to do is defund the police!! I have over 40 years in Law Enforcement experience and I am not anti-Police! One of the duties of the County Commission is to set and approve every county budget including the sheriff’s.
As for your question of “Telling a win for Taxpayers”?? Any time a taxpayer feels their voices are not being heard or their money not being spent in their best interest. Their leverage to their elected officials is by their votes, if they say No to an Issue, Surtax or any Issue that is a WIN!! Small though it may be!!
As for your “Then maybe it’s time to accept a new (sales) tax and move on.” I hope not, at least until the taxpayers and voters of Flagler County have had their say. After all we are the ones paying the bills!
Ed says
As the article so rightly states, it would not matter if 80 percent of the tax revenue is generated by tourists, we would still be paying the tax on everything we buy.
If you buy a new $40,000 car the 1/2 percent means another $200 dollars.
If you spend $10 another 5 cents….who cares the tourists will generate 16-40 percent.
I’m all for some budget cuts or savings.
Ed says
Correction: sales tax on a new car is 6 percent and then Flagler tacks on the 1 percent only on the first $5,000 -$50. So new tax would only cost us another $25…heck that’s lunch money!
Mark B. says
This is unacceptable. The “leaders” of Flagler county, especially Palm Coast; are the most tax happy Republicans I have EVER seen. The tax loving democrats who ran everything where I escaped from wouldn’t even do this, plus the property taxes here are insane for a retirement community.
Me says
Very true, wea are all tired of their increases and they are constantly proving to us they do not know what their doing. They are all a joke and the joke is on the taxpayers.
Local says
Apparently you have never been to New York or California….those democrats are out of control. Why do you think they are moving here?
Laurel says
Local: To raise our taxes.
Growing up in Ft. Lauderdale, most of my young, adult life, the sales tax was 4%. That didn’t change until New York started moving south. At that time, New York sales tax was 7%. We didn’t need the higher tax rate, as tourism paid the difference. That was the claim, anyway. We heard the jingle “Be a Friendly Floridian” on the TV daily. If we were to maintain affordable living, and profit, we were to be ultra welcoming to tourists. Well, the tourists moved to Ft. Lauderdale, Ft. Lauderdale grew along with all the promises how growth would be great for us, and the taxes went up to 7% in a relatively short period of time.
Growth only changes quality of life, and the loss of wildlife habitat, thus the loss of wildlife. Growth continues, taxes go up, more growth, more taxes, it goes on and on. Life the was it was, actually recently, is not good enough for those who profit from this growth, and that ain’t the citizens unless they are directly involved in real estate development and sales.
It’s never, ever enough.
YankeeExPat says
False narrative huh ? ……………how Trumpistic, …. Giulianimorphic,……Dankoism,….. Mullinistic,……Loweatrism!
The National/Local GOPer’s share a penchant for loading Bullshit on their constituents.
Wow says
How can they be so brazen to base everything on a fabricated statistic? That’s very devious.
Jim says
How can you trust the county commissioners when they base their support of this tax on false information? I wonder if any of our elected officials in this county, city and state really think the voters believe anything they say?
And if I can’t trust you to get your “supporting” facts right, why should I believe a tax increase is really needed? I don’t think any of the governments around here have every heard of challenging the budget and determining if there is any “fat” that can be cut. I guarantee there is. It’s a shame they just try to take the easy way out.
We have the worst elected officials I’ve ever seen in my life.
motherworry says
I heard a long time ago, that figures never lie, but liars always figure.
Tom Hutson says
Flagler Live False Information
FlaglerLive, Spot On regarding the SURTAX, just another example of our County Commissioners trying to pass this unwanted tax issue onto the cities. However, watch what you print; You may become another “Woke” organization. There is no real danger here of this suggested surtax becoming a reality unless the city commissions are part of the Minion followers. The city residents of Palm Coast, Flagler Beach, Bunnell and Beverly Beach need to tell their commissioners to “SIMPLE say NO! not interested at this time, thank you for asking!! We need to stop this spending, spending like there is a bottomless well full of taxpayer’s money there for the taking. Budget time is the right time!!Public hearings would be even better; residents would be able to let their commissioners know how they feel about more tax and spending.
Jane Gentile-Youd says
Heidi is no tax expert – instead of selling tax certificates against delinquent property tax payers she supports them and saves them with phony permits to continue to milk us of $40,000 in lawyer fees to keep her from advising the commissioners of the tax misues of this scam. I don’t trust anything she says – she does not do her homework in my opinion. VOTE NO NO NO Good for Eric Cooley
Atwp says
I understand we need taxes. To waste tax money is not good. The Republicans are in charge look at the waste, I know they don’t care about the little man or woman. They were elected so why not blame some of the voters, some of them hate Democrats so much look at what is happening. We are here so we will have to deal with the best we can. In 2024 we need to vote for better people. Welcome to the real world of life. Can’t blame Flagler County for high homeowners insurance rates but I don’t think Desantis is doing anything to help the working people here in the state. Right now the Republicans are doing a pretty good disservice to the people of the county and state. Will see what happens after the next election.
Denise says
Do like some of the Orlando counties are, Osceola etc., raise the impact fees…. DOUBLE THEM as a matter of fact, BUT… making sure the excess monies are put TOWARD SCHOOLS, HOSPITAL ADDITIONS, etc, and NOT in the commissioners pockets!! If we are going to have the growth that we are, some thought needs to go into how are our schools going to be able to hold the extra amount of people that are coming in. Hospitals as well, so not to have people waiting hours in the ER due to capacity! DOUBLE THE IMPACT FEES and call it good. Don’t punish the people who are long-timers, after all, we appreciate growth but …. not 100% to our expense.
Greg says
Don’t ever trust a politician at any level.
Tony says
More false information by Republicrats
Local says
Do u honestly believe that democrats are honest? The only honest politicians are run into the ground before they can get their career started because they go against the system. They all need to be held accountable and be voted out. The longer they stay the more connections they make. People have been saying for years ” vote them all out” but 95 % of the sheep keep voting the same people back into office. We already have term limits…it’s in the hands of the voters. Most are not smart enough to see it.
What’s next? says
Ah so the Ed Foundation misrepresented the school half cent sales tax too?! You know, the one that was marketed and paid for by John Walsh and the Chamber. They don’t want impact fees raised so they want to find other ways to push costs on the people. Look at that foundations tax returns. See how much they invest in investments but don’t put back into the community.
GOP are ... says
How many cops have we added in flagler county in recent years even with declining crime rates? Its the republican way like trumps tax cuts for the rich. add trillions to debt with no way to pay for it, blame it on biden then cut food stamps to help pay for it later. Make the big donors happy. When was the last time any government state local or federal made a budget and didnt break it. The jokers get behind podiums and tell us to save money even though now days most people dont make enough to cover basic human needs like shelter, food, water, and in florida a/c. The age of abundance is quickly ending. See virus in petrie dish.
Been There says
One of the dumbest career moves I have ever seen is when people choose a job over integrity.
First, it only guarantees that you will be asked to continue to commit unethical acts.
Secondly, this always ends badly – the external audit or outside investigation or news story will happen – so you will be exposed. It always comes out in the end.
Lastly, you made a deal with unethical people. So guess what they will do to you one day? They have no loyalty to either principles or people so eventually they will get rid of you when they think it suits them to do it.
Integrity can be tough too but it can never be taken from you. Don’t ever give it up just to keep a job. You can always find another job. It’s a lot harder to find your soul once you’ve lost it. – Dr. Joe Saviak (from his Linkedin)
Wasn’t Heidi Petito one of his leadership class graduates under Jerry Cameron. Flagler County government and integrity, the two don’t know anything about each other.
Palmcoaster says
NO to the 1/2 cent new sales tax. No to the county manager and commissioners calling for it. Tighten the departmental budgets belts by limiting the wants to the needs. No luxury library and tourist center millions as most taxpayers do not use it over lack of time while working to sustain their families. Now after they overspend the current 1/2 cent in that state of the art jail , county is broke to repave roads as the meager impact fees charged to their buddies developers should pay for new needed roads. Not to force paid by the homesteaders residents instead. Already palmcoasters pay too much to county of our ad valorem taxes 44 county 24 to city that has to maintain all our roads. Stop building castles to yourselves that started with the tajmahal.Instead provide the peoples that sustain your overpaid salaries that afford you to buy million dollar homes in gated communities. With the few dollars needed to keep the Belle Terre swim club open.. of course what you care when you have your own pool at home. ALl the grants you commissioners keep asking for that nuisance flight schools airport facility. Instead ask for roads grants. All these local city and county administrators just asking for tge wrong grants to benefit the wealthy flight boys schools , developers or yourselves..other than the funds needed to serve the residents first. Read the writing in the wall NO TO 1/2 cent!.
Nephew Of Uncle Sam says
Don’t expect too many of those tourists with EV’s pulling over and spending money here now, PC and the County GOP quashed EV charging stations.
Tom The Terp says
Laurel, well written…and 100% correct…..
jake says
If you vote to increase ANY tax, you are a moron. Increasing any tax, will eventually result in, ANOTHER raise in taxes. You can “piss and moan” about Republicans, but you Democrats have NEVER met a tax increase you didn’t like. You’re too busy holding someone down, in order to control them, than extending a helpful hand, to raise them.
blerbfamilyfive says
Faith Alkatib, County Engineer has secured millions of grant dollars for Flagler County Road projects as she is very good at her job.
Fernando Melendez says
Let’s just put in a clear easy and concise context. Let’s look at where we’re at as a County for the last 8 years, and perhaps two or three years before that but let’s stick to eight years. Misappropriation of tax payers hard earned dollars, bad investments, county budget always facing shortfalls, rezonings that are not consistent with our comprehensive plan and consistently voting on very poor policies. Who can we correlate that directly to? We can directly point to this group of County Commissioners with the exception of one newly elected one. All career politicians whom have been serving throughout this time and are too relaxed and comfortable in their elected positions and have forgotten what it means to serve in the best interest of the community and not for their own reasons or interests. Flagler County residents should continue what they started the last go around of elections and clean house completely. We have two Commissioners who are not running for reelection and won’t care much of what fires they helped start which are out of control now. And the rest have flagrantly disregarded how to serve in our best interest. This latest flap with the half cent tax hike under false information is just a continuation of what I’m talking about. They should be embarrassed and stop trying to extend the lies with even more dishonesty.