Taxes
Would our current MSTU taxes go away?
Last Updated: October 28, 2023MSTUs, or Municipal Service Taxing Units, were designed for counties needing to provide municipal-style benefits or services within unincorporated county areas. They are not designed for use in municipalities. Florida statutes address MSTUs charged by a county to an unincorporated area, which later forms a municipality. By law, these funds must come back to the...
How does the Perdido community compare to other towns our size in Florida?
Last Updated: July 5, 2023Directly comparing one municipality to another is complex and problematic ― apples to oranges. The reason is that even towns of similar populations seldom have similar geography, tax base, demographics, income, expenses, and services. The Florida Department of Revenue database lists all municipalities and counties in revenues and taxable values. If one were to draw...
How can the government lite model keep our taxes low?
Last Updated: October 26, 2023The municipal charter sets the compensation of elected town leaders and outlines the structure of the new local government. This structure helps reduce the need for additional expenditure and encourages a smaller administration size. Elected town leaders agree on and approve the budget each year, and it can be designed to keep the government size...
Can municipalities collect sales and gas taxes?
Last Updated: October 26, 2023No. Only the state and counties can levy sales and gas taxes in Florida. The state collects these revenues into a pool, from where they are distributed to local governments at both the county and municipal levels. Local governments, including municipalities, are entitled to a share of these revenues under state law. The Department of...
How can we return a more significant share of our tax dollars to our local community?
Last Updated: October 28, 2023If municipal boundary lines are drawn and the Town of Perdido is established, Escambia County loses the authority to collect many existing revenues from within the boundaries (MSTUs, franchise fees, communication services tax, business licenses, state-shared revenues, and potentially other gas tax revenue, to name a few). By state statute, those revenues belong to the...
Who determines Perdido’s “fair share” of taxes?
Last Updated: October 26, 2023This is an excellent question. The state of Florida’s Department of Revenue, Florida statutes, and examples set forth by existing municipalities in their interlocal agreements, all provide a specific and fair way of determining the tax dollars that belong to a local municipality. As part of the unincorporated county, local tax dollars go into a...
How many employees does a typical government-lite municipality require?
Last Updated: July 5, 2023There is no “typical,” as every city is unique in its own right and has a distinct mix of service needs. Government-lite municipalities have anywhere from five to twelve employees. Every municipality needs, at a minimum, an attorney, a clerk, and a manager/administrator. Beyond those three, the employment needs depend entirely on the scope of...
How much would incorporation cost local taxpayers?
Last Updated: October 26, 2023The cost to taxpayers depends entirely on the level of services residents desire from their local government. The feasibility report provides budget projections as a baseline – contemplating current service levels for current dollars – using existing revenue sources that would return to the community. The projections showed current service levels to be achievable using...
What are some of the issues we expect to resolve through municipal incorporation?
Last Updated: October 26, 2023By incorporating Perdido as a municipality, we could directly address local concerns and build value in our community while having a local voice, a local choice, and a seat at the table. We could return a large portion of existing tax revenue to Perdido and control our own destiny. Early on in the process, local...
What municipal services and benefits can the government-lite model provide Perdido?
Last Updated: July 5, 2023Under the government-lite model, municipalities contract out the bulk of municipal services. This allows service levels to be locally managed while avoiding the duplication of services. Fire, EMS, and law enforcement would be contracted directly with existing service providers through the county. Based on the needs identified so far, the focus would be on fixing...
How might homeowners be affected?
Last Updated: October 26, 2023Local zoning and planning would address the issue of development outpacing infrastructure and help protect our community’s charm ― our wildlife and way of life. Local code enforcement will help protect property values. Locally managing traffic issues and road repairs will ensure homeowners have an easier time getting around. Based on the boundaries, local law...
Would becoming a town affect homestead, disabled veteran, and widow/widower exemptions?
Last Updated: July 5, 2023No. All of these exemptions are outlined in Florida statutes, not at the municipal level.
Can a municipality increase the assessed property tax values of its residents?
Last Updated: July 5, 2023No. Assessed property values for tax purposes are handled by the county tax assessor’s office and must comply with state regulations. One such regulation limits how much the assessed value may increase in any given year. For instance, properties with homestead exemptions cannot increase more than 3% in a given year, matching average inflationary figures.
Would a new municipality have a Public Service Tax or “Utility Tax”?
Last Updated: October 28, 2023The feasibility report projections contemplate current service levels using current revenue sources. Because the utility tax has not been approved for use in unincorporated Escambia County, the Town of Perdido incorporation analysis does not include revenues associated with a Public Service Tax. The current feasibility analysis shows that a balanced budget is possible without the...
Would a new municipality collect franchise fees and communications service tax?
Last Updated: July 5, 2023The 5-year projected budget being included in the feasibility study assumes that current franchise fees and communications service tax rates would remain unchanged. An incorporated municipality of Perdido would receive these revenues rather than the county. Franchise fees typically are levied on a company or utility for the privilege of doing business within the municipality’s...
Would the new town, as proposed, collect utility taxes?
Last Updated: November 7, 2023No, not as currently proposed. While utility taxes can be a revenue source for municipalities, the feasibility report showed a balanced general fund budget without a utility tax. The report provides budget projections as a baseline – contemplating current service levels for current dollars – using existing revenue sources that would return to the community. If...
Does all current tax revenue remain with the county?
Last Updated: October 13, 2023No. Florida counties cannot collect franchise fees or communication services tax within municipal boundaries. Those turn over to the municipality. The state prohibits non-charter counties (such as Escambia County) from collecting MSTUs or MSBUs within municipal boundaries without the municipality’s consent. While the county’s ad valorem taxes would remain with the county, the feasibility report demonstrates that...
Would the new town be eligible for state-shared revenues?
Last Updated: October 13, 2023As proposed, the Town of Perdido would qualify for these funds. State-shared revenues come from sales tax (the 1% and half-cent county sales taxes) and a portion of other state tax revenue. These funds go into a pool at the state and are distributed to local governments according to a complex formula, as determined by the...
What would the impact be on residents and businesses?
Last Updated: October 28, 2023The feasibility study analysis is based on current service levels for current dollars. The report looks at all existing tax revenues that would return to the town’s control and then contemplates impacts based on current services. It demonstrates that, with current service levels, a balanced general fund budget is attainable using only existing revenue sources....
Why are Coral Creek and Roscoe Field areas being included?
Last Updated: November 7, 2023No decision has yet been made on including Coral Creek or Roscoe Field areas. Upcoming research will look at the implications of including each of these areas. The final decision for inclusion will be based on four factors: identity, feasibility, liability, and interest. We learned from other proposed municipal incorporations to research surrounding areas, considering...