FLORIDA'S SALES TAX ON SERVICES

Abstract

other aspects of the tax, the levy trigDuring its 1987 session, the Florida leg- gered an enormous storm of protest, with islature enacted a sales and use tax on a opponents attacking it as unfair, unwise, broad range of services consumed in the and unconstitutional. In December 1987, state. Because the tax systematically sought less than six months after the tax took efto tax services that were performed outside fect, the Florida legislature responded to the state but used in Florida (including the widespread opposition to the tax by national advertising), the levy triggered I an repealing it effective January 1, 1988. enormous storm of protest with opponents This article traces the development of attacking it as unfair, unwise, and uncon- Florida's sales tax on services, examines stitutional. This article traces the histori- its design and operation, explores the polcal develo ment of Florida's sales tax on icy questions that the tax has posed, con@p siders the legal challenges to the levy's services, examines its design and opera- validity, and describes the events that led tion, explores the policy questions that the to its repeal. Although I cannot claim to tax raised, considers the legal challenges be a disinterested observer of rise and fall to the levy's validity, and describes the of Florida's sales tax on services,7 I have events that led to its ultimate repeal. attempted to present the issues raised by the tax in an evenhanded manner.