Res 78-84 RESOLUTION NO. 78-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY
BEACH, FLORIDA, VOICING THE OPPOSITION OF THE CITY
COUNCIL TO THE UNITARY TAX IMPOSED ON CORPORATIONS BY
THE STATE OF FLORIDA AND CALLING FOR A REPEAL AND
REPLACEMENT OF THAT UNITARY TAX; PROVIDING FOR THE
FURNISHING OF COPIES OF THIS RESOLUTION.
WHEREAS, the City Council of the City of Delray Beach, Florida is aware that
'recent amendments to Florida's unitary tax both expand the definition of a unitary
business and expand the taxable base of a business designated as a unitary business
by requiring the inclusion of income from foreign sources; and,
WHEREAS, the City Council of the City of Delray Beach is aware that the
unitary tax, and those amendments in particular, impose a double financial burden on
some Florida businesses, first by requiring elaborate and costly calculations of the
value of the worldwide property holdings and worldwide income, and secondly by
including that worldwide income in the tax base of the corporation for purposes of
determining Florida tax; and, _. _.
WHEREAS, the City Council of the City of Delray Beach and the citizens of
Delray Beach have experienced a local hardship as a direct result of the unitary tax
system in the form of a decision by IBM to cancel its agreement for long-term lease for
150,000 square feet in a planned $6 million complex because of Florida's unitary tax
system, and as a result of that decision, plans for the commercial complex have been
halted; and,
WHEREAS, the City Council of the City of Delray Beach recognizes that the
purpose of this unitary tax was to raise revenues for educational purposes, but in this
case the result will be the loss of ad valorem revenues to the City of Delray Beach, the
County of Palm Beach, and ironically the Palm Beach County School District, and in
addition, the State will experience a loss in sales tax revenues which might have been
generated by such a business expansion.
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WHEREAS, the City Council of the City of Delray Beach is disturbed and
deeply concerned by the realization that decisions by corporations to settle in other
states result in a loss of jobs both in the sphere of direct employment and in the
sphere of secondary services and products provided to those businesses and their
employees; and,
WHEREAS, our national economy is experiencing a growth in high tech
industries whose members make the ideal additions to a community by providing jobs
and tax resources with little consequential demand upon governmental services; and,
WHEREAS, the imposition of the unitary tax by the State of' Florida upon
businesses and corporations during this developmental period will result in Florida
citizens being deprived of sharing in the benefits of having those high tech
corporations as members of their community; and,
WHEREAS, the City Council of the City of Delray Beach believes that its
experience with the loss of a valuable business is not, and shall not be, isolated but
portends a result absolutely contrary to the intent of the legislature -- a loss in
corporate tax, school tax and sales tax revenues, a loss in jobs, a destabilization
rather than a stabilization of the tax base, and a consequential need to shift an even
greater share of the tax burden onto the shoulders of individual citizens; and,
WHEREAS, the City Council of the City of Delray Beach supports the efforts
of House Speaker-designee James Harold Thompson and Senate President-designee Harry
Johnston to hold a special session of the Legislature for the purpose of considering the
repeal of the unitary tax and its replacement with a revenue source which will still
require businesses to participate in the revenue needs generated by the State's
education reforms.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That the City Council of the City of Delray Beach, Florida, after
careful consideration hereby formally declares its opposition to the State of Florida's
unitary tax system and urges the Florida Legislature to move swiftly to bring about its
repeal and replacement.
Section 2. That the City Clerk is hereby authorized and directed to furnish
a copy of this Resolution to local members of the State Legislature, the Florida LeagUe
of Cities, and any other entity or individual requesting same.
PASSED AND ADOPTED in spec±al session on this the 2nd day of
October , 1984.
ATTEST:
2 RES. NO. ?8-84