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States Should Look to Florida’s “Super” Example to Protect Taxpayers 

Key Findings

  • Florida requires a supermajority in the state legislature to raise any state tax or fee. This protection is enshrined in the state’s constitution.
  • Requiring a supermajority to raise taxes is an important safeguard to keep state taxes low.
  • Floridians have reaped the benefits of this reform with a business-friendly climate, more disposable income, and lower tuition.
The Bottom Line: Other states should follow Florida’s lead and propose constitutional amendments that require a supermajority to raise taxes and fees.

Overview

Across the country, states are lowering personal income taxes.1 While this is encouraging, volatile economic and political winds ensure that nothing is forever. States should look to Florida, where lawmakers have prioritized keeping taxes low. By requiring a supermajority to raise any state taxes or fees, Florida promises to remain respectful of taxpayers and dedicated to fiscal conservatism.

Though Florida leans politically conservative today, this has not been the case for much of the state’s history. Registered Republicans outnumbered registered Democrats in Florida in 2021 for the first time in modern history.2 The high bar of requiring a supermajority to raise taxes helps to thwart Democrats’ short-sighted, big-spending agenda. Should the state return to a Democratic majority, Democratic lawmakers would do their best to try to raise taxes and grow government.3 The supermajority safeguard makes this much less likely. 

Requiring a supermajority to hike taxes ensures thoughtful and deliberate consideration of budget items and bottom-line spending. In 2018, then-Governor Rick Scott ushered in this requirement, ensuring fiscal responsibility would remain the status quo.4 Other states should follow Florida’s lead to put taxpayers above political whims and allow the economy to thrive.

Florida requires a supermajority in the state legislature to raise any state tax or fee. This protection is enshrined in the state’s constitution.

In 2018, Florida voters approved a constitutional amendment to require a supermajority in the legislature to increase any state tax or fee.5 This means that to raise any state tax or fee, two-thirds of both the 120-member House and 40-member Senate must approve the increase.6 Before the reform, a simple majority was required to pass most bills, including tax increases. With the reform, 16 percent more votes are required to raise any state tax or fee.7 Furthermore, Florida included a single-subject requirement, so any tax increase must be proposed in a standalone bill with no other subject.8 This ensures that any proposed tax increase would be voted on at face value and not tied to other issues to be used for political leverage. This is an important step to ensure transparency.  

A supermajority safeguard is not a new concept in Florida. To create a new state tax or fee, the state constitution requires approval by two-thirds of the membership of both the House and Senate.9 Moreover, the legislature may not increase certain recurring appropriations to exceed three percent of general revenue unless approved by a three-fifths majority of both chambers.10 And prior to 2018, Florida’s constitution already required a supermajority for certain increases in the corporate income tax rate.11

The Florida Legislature also requires some type of majority for local governments to raise certain taxes.12 Property taxes, for example, are levied by local governments but are a growing concern statewide. Proposals to require a supermajority of the local governing body to increase certain millage rates have been raised but have thus far been unsuccessful.13

Requiring a broad consensus promotes thoughtful leadership. Since 2018, when the supermajority safeguard was first put in place, no major taxes have been seriously considered. In fact, the last significant tax increase was in 2009 when then-Governor Charlie Crist raised taxes as the state was reeling from a recession.14 The state sales tax rate has not changed since 1988.15 

Requiring a supermajority to raise taxes is an important safeguard to keep state taxes low.

Government spending leads to higher taxes. But with a high barrier to raising taxes, spending is curbed by default. In Florida, lawmakers must have an airtight reason if they plan to raise taxes. With this safeguard, the state has laid the foundation to make tax increases—and government growth—an uphill battle. Studies have shown that a supermajority requirement successfully keeps taxes low.16

On the revenue intake side, the supermajority requirement affects Florida’s various state taxes. First, because the state does not levy an income tax, Florida sustains its government on consumption taxes, primarily its sales tax.17 The sales tax is driven heavily by the state’s tourism industry.18 Moreover, Florida has a broad sales tax base. The tax applies to everything from goods such as furniture and clothing to services such as commercial security and amusement park tickets.19-20

Consumption-based taxes, like the sales tax, are relatively simple and stable taxes. While income taxes can discourage work and hinder savings and investment, consumption-based taxes affect people’s buying habits. Taxing what people spend rather than what they earn provides a more stable revenue source.

For most states, personal income taxes make up the majority of their general revenue.21 Florida does not tax personal income—a windfall for Floridians—and instead relies on its state sales tax rate of six percent.22 Combined with average local sales taxes, the sales tax rate across the state averages at 7.02 percent, making it the 24th highest sales tax rate in the country.23 Yet sales taxes in Florida make up 75 percent of the state’s general revenue, followed by corporate income at nearly 12 percent.24-25

The supermajority safeguard keeps each of these taxes low. By keeping taxes low, Florida also keeps spending relatively low and prevents a dangerous tax-and-spend cycle.

Because of the state’s dedication to fiscal conservatism, Florida’s government is smaller. Florida’s yearly tax collections per capita are incredibly low as compared to other states. The state collects only $2,641 per capita—the lowest in the nation after New Hampshire.26 And the state’s spending sanity allows Florida to retain billions in surpluses because of the strong economic engine.27

Florida has nearly $8 billion in unallocated general revenue funds.28 The states’ reserves total $17 billion—14.6 percent of the total budget and a whopping 29 percent of general revenue.29 Just like having a personal savings account prevents someone from having to take out a loan, the state’s reserves and surpluses help to safeguard residents from tax hikes and provide a cushion in the event of an economic downturn. Florida’s residents can rest easy knowing their taxes are unlikely to go up.

Floridians have reaped the benefits of this reform with a business-friendly climate, more disposable income, and lower tuition.

Florida’s tradition of keeping taxes low continues to draw people to the state. People are moving to Florida in droves.30 New residents have more confidence that a move to Florida will be fruitful because of the supermajority safeguard. In general, Floridians have a hopeful economic outlook.31 And they expect taxes to remain low.

Business confidence is also strong in Florida. The supermajority requirement makes Florida business-friendly, especially since small businesses in Florida pay no income tax. Business owners do not want to be subject to fickle political changes that result in a higher tax burden. In this way, Florida has become a tax haven. When compared to all 50 states, Florida continues to rank as one of the top states for business.32

A lower tax burden allows Floridians to keep more of their disposable income. Moreover, retirees on a fixed income benefit from the stable tax climate. Retirees’ pensions, 401(k) plans, and Social Security are not subject to taxes at the state level.33 It is easier for those living on a fixed income to plan for a future in Florida. A lower tax burden ultimately means living under a smaller government, which in turn results in a less burdensome and more affordable way of life.

In addition, Florida traditionally keeps college tuition rates low. Today, Florida boasts the lowest tuition rate in the country.34  Despite spending more than the national average per full time student, Florida is dedicated to keeping tuition rates low.35-36 Fiscal restraint regarding taxes levied carries over to Florida tuition rates, which are set annually by the Florida Legislature.37 The same fiscally conservative legislature that requires broad consensus to raise state taxes will also not easily raise tuition. In fact, Florida continues to create innovative ways to provide even more affordable tuition.38 Notably, on the 2018 ballot, Florida voters approved a constitutional amendment to require a supermajority vote at the Board of Governors to increase college fees.39

The Bottom Line: Other states should follow Florida’s lead and propose constitutional amendments that require a supermajority to raise taxes and fees. 

States should look to Florida for a blueprint to build safeguards that promote economic success and protect their taxpayers. Fortunately, Florida is not alone. Fourteen states have a similar requirement enshrined in their state constitutions for tax increases, though the specifics vary.40-53 For example, Wisconsin requires a two-thirds supermajority to raise certain taxes, but this measure is statutory, and not enshrined in the constitution.54 In 2023, the legislature proposed this safeguard as a constitutional amendment.55

Three states require a three-fourths (75 percent) threshold to raise taxes. Eight states, including Florida, require a two-thirds (66.67 percent) threshold. And four require a three-fifths (60 percent) threshold. However, some of the state safeguards do not apply to all types of taxes. For example, Arkansas requires a three-fourths supermajority to increase taxes, but sales taxes—and other taxes that did not exist when the amendment passed in 1934—are exempt from the requirement.56-57 Michigan only requires a supermajority for property taxes.58

A similar reform in Colorado requires voter approval for tax increases.59 Alabama requires a constitutional amendment for certain tax increases.60 And Missouri requires voter approval to raise taxes above a given revenue level.61

Other states are considering supermajority safeguards. Iowa took promising first steps to pass a two-thirds supermajority requirement during their last legislative session.62 In Washington, a poll found voters continue to support a supermajority requirement to increase taxes.63 But without enshrining the safeguard in the state constitution, taxpayers in Washington state face the threat of tax increases each year.

A supermajority to raise taxes requires lawmakers to be thoughtful with taxpayer funds. Raising taxes to expand government is often a short-sighted response. Fiscal responsibility is not a “quick fix” but a long-term commitment to managing government excess. States should look to Florida to prioritize taxpayers above political whims. States should propose constitutional amendments to require a supermajority to raise taxes and fees.

REFERENCES

1 Paige Terryberry, “States benefit from a wave of income tax reform,” Foundation for Government Accountability (2024), https://thefga.org/research/states-benefit-from-wave-of-income-tax-reform.  

2 Florida Division of Elections, “Voter registration – by party affiliation,” Florida Department of State (2024), https://dos.fl.gov/elections/data-statistics/voter-registration-statistics/voter-registration-reports/voter-registration-by-party-affiliation.

3 Elizabeth Wilson et al, “Chiles hits road seeking support for tax increase,” Tampa Bay Times (1992), https://www.tampabay.com/archive/1992/01/16/chiles-hits-road-seeking-support-for-tax-increase/?outputType=amp.    

4 Florida Senate, “HJR 7001 Senate vote,” Florida Senate (2018), https://flsenate.gov/Session/Bill/2018/7001/Vote/SenateVote_h07001__009.PDF.

5 Florida Senate, “HJR 7001: Supermajority vote for state taxes or fees,” Florida Senate (2018), https://flsenate.gov/Session/Bill/2018/07001/ByCategory/?Tab=BillHistory.

6 Florida House of Representatives, “Legislative glossary,” Florida House of Representatives (2024), https://www.myfloridahouse.gov/Sections/PublicGuide/glossary.aspx?Filter=L#:~:text=Florida%20has%20a%20bicameral%20legislature,Representatives%20serve%20two%2Dyear%20terms.  

7 Author’s calculations.

8 Florida House of Representatives, “HJR 7001,” Florida House of Representatives (2018),  https://flsenate.gov/Session/Bill/2018/7001/BillText/Filed/PDF.

9 Florida Courts, “Constitution of the State of Florida,” Florida Courts (2024), https://www.flcourts.gov/content/download/1453587/file/Florida%20State%20Constitution.pdf.  

10 Ibid.

11 Florida Senate, “Bill analysis and fiscal impact statement,” Florida Senate (2018), https://flsenate.gov/Session/Bill/2018/7001/Analyses/2018h07001.ap.PDF.

12 Florida Legislature, “The 2024 Florida statutes,” Florida Legislature (2024), http://www.leg.state.fl.us/Statutes./index.cfm?App_mode=Display_Statute&Search_String=&URL=0300-0399/0336/Sections/0336.025.html.

13 Florida Senate, “House bill 1195,” Florida Senate (2024), https://www.flsenate.gov/Session/Bill/2024/1195.   

14 Amy Sherman, “Charlie Crist raised taxes in 2009 and won’t rule out raising taxes again Republican Party of Florida says,” Politifact (2014), https://www.politifact.com/factchecks/2014/apr/08/republican-party-florida/charlie-crist-raised-taxes-2009-and-wont-rule-out-.

15 Florida Department of Revenue, “History of local sales tax and current rates,” Florida Department of Revenue (2024), https://floridarevenue.com/taxes/Documents/flHistorySalesTaxRates.pdf.  

16 Soomi Lee, “The effect of supermajority vote requirements for tax increase in California: A synthetic control method approach,” State Politics & Policy Quarterly (2021), https://www.cambridge.org/core/journals/state-politics-and-policy-quarterly/article/abs/effect-of-supermajority-vote-requirements-for-tax-increase-in-california-a-synthetic-control-method-approach/2EF0DC7CC373DADF62FEEB669C77A04B.  

17 Office of Tax Research Collections and Distributions, “General tax collections,” Florida Department of Revenue (2024), https://floridarevenue.com/dataPortal/Pages/TaxResearch.aspx.  

18 Florida Restaurant & Lodging Association, “Florida tourism industry promotes the impacts and benefits of tourism during ‘Florida tourism days’,” Florida Restaurant & Lodging Association (2024), https://frla.org/news-release/florida-tourism-industry-promotes-the-impacts-and-benefits-of-tourism-during-florida-tourism-days.  

19 Florida Department of Revenue, “Florida sales and use tax,” Florida Department of Revenue (2024), https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx#:~:text=Florida’s%20general%20state%20sales%20tax,of%20commercial%20real%20property%20%2D%202%25.

20 University of Florida, “Sales tax reference guide,” University of Florida (2019),  https://www.fa.ufl.edu/wp-content/uploads/2019/05/UF-Sales-Tax-Reference-Guide.pdf.

21 Paige Terryberry, “States benefit from a wave of income tax reform,” Foundation for Government Accountability (2024), https://thefga.org/research/states-benefit-from-wave-of-income-tax-reform.   

22 Florida Department of Revenue, “Florida sales and use tax,” Florida Department of Revenue (2024), https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx#:~:text=Florida’s%20general%20state%20sales%20tax,of%20commercial%20real%20property%20%2D%202%25.

23Jared Walczak, “State and local sales tax rates, midyear 2024,” The Tax Foundation (2024), https://taxfoundation.org/data/all/state/2024-sales-tax-rates-midyear.  

24 Florida Revenue Estimating Conference, “2023 Florida tax handbook,” Legislative Office of Economic and Demographic Research (2023), http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2023.pdf.

25 Ibid.

26 The Tax Foundation, “Facts & figures 2024: How does your state compare?” The Tax Foundation (2024), https://taxfoundation.org/data/all/state/2024-state-tax-data.

27 Governor Ron DeSantis, “The focus on Florida’s future budget,” Executive Office of Governor Ron DeSantis (2024), https://www.flgov.com/wp-content/uploads/2024/06/2024-25-GAA-Highlights.pdf.

28 Ibid.

29 Ibid.

30 U.S. Census Bureau, “Guidance for state-to-state migration flows,”  U.S. Census Bureau (2024), https://www.census.gov/topics/population/migration/guidance/state-to-state-migration-flows.html.

31 Sheridan Meek, “Floridians’ outlook on the economy hits highest level in the past two years,” Florida Chamber of Commerce (2024), https://www.flchamber.com/floridians-outlook-on-the-economy-hits-highest-level-in-the-past-two-years.

32 Jared Walczak et al., “2024 state business tax climate index,” The Tax Foundation (2023), https://taxfoundation.org/research/all/state/2024-state-business-tax-climate-index.

33 Sharon Waters and Grace Dickinson, “Florida state tax guide: What you’ll pay in 2024,” AARP (2024), https://states.aarp.org/florida/state-taxes-guide#:~:text=Because%20Florida%20does%20not%20have,the%20state%20or%20local%20level.  

34 Florida Board of Governors, “Average public four-year tuition & fees for full-time resident undergraduates,” Florida Board of Governors (2023), https://www.flbog.edu/wp-content/uploads/2023/11/2023-24-College-Board-Undergrad-Tuition-Table.pdf.

35 National Center for Science and Engineering Statistics, “State support for higher education per full-time equivalent student,” National Center for Science and Engineering Statistics (2022), https://ncses.nsf.gov/indicators/states/indicator/state-support-for-higher-education-per-fte-student.

36 Florida Department of Education Press Office, “Florida is ranked as number one state for education by U.S. News & World Report,” Florida Department of Education (2023), https://www.fldoe.org/newsroom/latest-news/florida-is-ranked-as-number-one-state-for-education-by-u-s-news-world-report.stml.

37 The 2023 Florida Statutes, Title XLVIII, Chapter 1009, http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=1000-1099/1009/1009.html.

38 Paige Terryberry, “Florida leads higher education revival with innovative tuition opportunity for distance learning,” Foundation for Government Accountability (2024), https://thefga.org/research/florida-leads-higher-education-revival.

39 Ballotpedia, “Florida Amendment 7, first responder and military member survivor benefits, supermajority board votes for college fees, and state college system amendment (2018),” Ballotpedia (2018), https://ballotpedia.org/Florida_Amendment_7,_First_Responder_and_Military_Member_Survivor_Benefits,_Supermajority_Board_Votes_for_College_Fees,_and_State_College_System_Amendment_(2018).

40 A.R.S. Const. art. IX, § 22, https://www.azleg.gov/viewDocument/?docName=https://www.azleg.gov/const/9/22.htm.  

41 Ark. Const. art. 5, § 38, https://www.izardcountyar.org/plugins/show_image.php?id=202.

42 Cal. Const. art. XIIIA § 3, https://casetext.com/statute/california-constitution/article-xiiia-tax-limitation/section-3.

43 Del. Const. art. VIII, § 10, https://delcode.delaware.gov/constitution/constitution.pdf.

44 Fla. Const. art. VII, § 19, https://www.flsenate.gov/laws/constitution.

45 Ky. Const. § 36, https://legislature.ky.gov/LRC/Publications/Informational%20Bulletins/IB59.pdf.

46 La. Const. art. VI, § 14, https://senate.la.gov/Documents/LAConstitution.pdf.   

47 MCLS Const. art. IX, § 3, https://www.legislature.mi.gov/documents/mcl/pdf/mcl-Constitution-IX.pdf.

48 Miss. Const. ann. art. 4, § 70,  https://www.sos.ms.gov/content/documents/ed_pubs/pubs/Mississippi_Constitution.pdf.

49 Mo. Const. art. X, § 19, https://www.sos.mo.gov/CMSImages/Publications/CurrentMissouriConstitution.pdf.

50 Nev. Const. art. 4, § 18, https://www.leg.state.nv.us/Division/Legal/Lawlibrary/Const/NvConst.html.

51 Okl. Const. art. 5, § 33, https://oksenate.gov/sites/default/files/2019-12/AllOKConstitutionArticles.pdf.

52 Ore. Const. art. IV, § 25, https://www.oregonlegislature.gov/bills_laws/lawsstatutes/IndexORConstitution.pdf.

53 S.D. Const. art. XI, § 13, https://sdsos.gov/2023SouthDakotaConstitution20220124.pdf.

54 Wisconsin State Legislature, “2011 Wisconsin act 9,” Wisconsin State Legislature (2011), https://docs.legis.wisconsin.gov/2011/related/acts/9.

55 Wisconsin State Legislature, “2023 assembly joint resolution 66,” Wisconsin State Legislature (2023), https://docs.legis.wisconsin.gov/2023/related/proposals/ajr66.  

56 Ark. Const. art. 5, § 38, https://www.izardcountyar.org/plugins/show_image.php?id=202.

57 Central Arkansas Library System, “Amendments 19 and 20,” Encyclopedia of Arkansas (2021), https://encyclopediaofarkansas.net/entries/amendments-19-and-20-4161/#:~:text=Regarding%20taxes%2C%20Amendment%2019%20stated,three%2Dfourths%20of%20each%20house.  

58 MCLS Const. art. IX, § 3, https://www.legislature.mi.gov/documents/mcl/pdf/mcl-Constitution-IX.pdf.

59 Colorado Department of Revenue, “Taxpayer’s bill of rights (tabor) information,” Colorado Department of Revenue (2024), https://tax.colorado.gov/TABOR.

60 Ala. Const. art. XI, § 217, https://law.justia.com/constitution/alabama/CA-888542.html.

61 Revisor of Missouri, “Title X, taxation and revenue,” Revisor of Missouri (2024), https://revisor.mo.gov/main/OneSection.aspx?section=137.073#:~:text=(1)%20In%20all%20political%20subdivisions,a%20majority%20of%20votes%20cast.  

62 The Iowa Legislature, “Senate study bill 3142,” The Iowa Legislature (2023), https://www.legis.iowa.gov/legislation/BillBook?ba=SSB3142.    

63 Lisa Shin, “New poll: Lawmakers should act on supermajority for taxes amendment,” Washington Policy Center (2016), https://www.washingtonpolicy.org/publications/detail/new-poll-lawmakers-should-act-on-supermajority-for-taxes-amendment.

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