PRESS RELEASE August 1, 2000

Tallahassee, FL – Florida TaxWatch today issued a report card on the City of Tallahassee and Leon County's penny sales tax program. Florida TaxWatch gave the City and County "Ds" on the 1989 public information campaign and project planning, but issued much-improved grades for more recent aspects of the program.

An economic impact study, prepared by the Center for Economic Forecasting and Analysis at Florida State University in consultation with Florida TaxWatch, finds that Leon County's proposed 15-year sales tax extension would generate an estimated $841.2 million of additional economic growth - including nearly 2,000 extra jobs and more than $100 million of increased personal income. Job growth would be reflected in a wide array of fields including business and professional, health and social services, wholesale and retail trade. If the sales tax is not extended, $479.9 million in economic growth would be generated through alternative spending.

"Leon County voters will be faced with a monumental decision in November," said Florida TaxWatch Chief Operating Officer, Dr. Keith Baker. "Whether or not citizens vote to extend this tax will affect the content and character of our community for the next 20 years."

The study does not support or oppose the November 2000 ballot referendum. Rather, it is designed to provide accurate and meaningful information to Leon County and Tallahassee City Commissioners and Leon County citizens so voters will be able to make a more meaningful, relevant and accurate assessment of the tax. Florida TaxWatch will participate in community forums on the sales tax as voters consider this monumental policy issue in the coming weeks.

Failure to extend the sales tax would generate additional taxes on rent, royalties and dividends, as well as additional excise and property taxes, sales taxes paid by businesses and increased fees.

"The net economic gains of the proposed sales tax extension would more than offset these losses - to the tune of $361 million," said Dr. Tim Lynch, Director of the Center for Economic Forecasting and Analysis at Florida State University. "The potential benefit of the tax is that citizens would have the use of an improved roadway system, an improved environment and a generally higher quality of life."

The lion's share of sales tax extension projects would be those recommended by a citizen-based Economic and Environmental Consensus Committee which presented its Blueprint 2000 and Beyond report for economic development and resource management in April 1999, and a detailed costing of projects in February 2000.

"The Economic and Environmental Consensus Committee's creative and balanced approach to dealing with the challenges inherent in Leon County's infrastructure bodes well for future community development and revitalization," added Dr. Baker.

Florida TaxWatch's six-month study of the City of Tallahassee and Leon County's stewardship of the one-cent local option infrastructure sales surtax between 1989 and 2000 assigns the following grades to the various facets of the sales tax program: