OSCEOLA COUNTY, Fla. — Osceola County voters could decide to increase their own sales tax. If it's approved, the county's sales tax would rise to eight percent, the highest in the state and as high as it is in New York City.
WFTV went to find out how a tax increase like that would impact Osceola County business owners.
Holt Auto Sales on South John Young Parkway in Kissimmee has been around nearly 20 years. Last month, owner Charles Holt had his worst month ever and sold just eight cars. He says a sales tax hike is only going to hurt more.
"Going to seven, then eight. Where's this thing going to stop?" Holt questioned.
For instance, a car that sells for $6,000, taxes at seven percent are $410 and eight-percent is an extra $50. Include an average of $400 for a new tag and you're at $860. All of it comes out of the down payment. So, if someone only has $1,000 for their down payment, not much is left.
"By the time we send $480 to the state and $400 for the tag, how much does that leave out of the thousand dollars?" Holt said. "Very little."
Osceola County commissioners say, because taxes are so controversial, they want voters to decide if they want to pay the extra taxes. The county faces a $35 million budget deficit. Property values are down and the county has the highest foreclosure rate in Central Florida.
"We're just going to keep spending money and throwing things away and being irresponsible with the money and keep taxing you for more," Holt said.
The $400 million generated over 15 years can only be used to work on 11 named road projects: Osceola Parkway II, Poinciana III, Nepture Road Phase III, Hoagland Blvd II & III (Kissimmee's section as well), Old Canoe Creek Road (to include St. Cloud's section), Boggy Creek I & II, Shady Lane, Buenaventura Blvd, Osceola Parkway Extension, Thacker Avenue, and Bill Beck Blvd.
Commissioner Fred Hawkins was leery, but said he voted to put the issue on the November ballot because voters in his district said they're willing to pay more to get more. When other commissioners agreed that the money can't be used to fund SunRail or other mass transit projects, he was sold.
"I'm going to put those voters to the test," Hawkins said.
The tax hike would not only make a slight impact on high dollar items. The state's sales tax is six percent. When local governments add their own sales taxes, they're only allowed to tax the first $5,000 of each item. So, something like a car, with Osceola's proposed tax, you'd pay eight percent for the first $5,000 and then six percent for the rest.
WFTV
