Osceola County sales tax referendum could be tossed out depending on new lawsuit

OSCEOLA COUNTY, Fla. — As voters begin to weigh in on the November election across the Sunshine State, the results of one Osceola County ballot referendum could be in jeopardy if a newly filed lawsuit prevails.

>>> STREAM CHANNEL 9 EYEWITNESS NEWS LIVE <<<

The suit, filed by state Rep. Anthony Sabatini (R) on behalf of a group of voters earlier this month, claims the county is misleading voters as it attempts to renew its infrastructure penny sales tax through 2045.

The suit attacks the summary of the referendum, which guides voters before they mark their choice and says they’d be voting in favor or against a “one-cent” increase instead of “one percent.”

“It’s materially confusing to people. It’s not right,” Sabatini said in a video statement posted to Facebook. “If they want to propose a tax increase, they should be very clear about the type of taxes and the rate of taxes that people are going to be paying.”

While it seems like a nitpicking attempt to throw a wrench in the political process, the ramifications are much greater. A one-cent sales tax on an item is just that: one penny. For discretionary sales taxes, Florida law allows purchases to be taxed up to the first $5,000 of their value, meaning a 1% sales tax would cost an additional $50 on large purchases.

Read: Battle lines forming over Orange County transportation tax vote

That’s why multiple other attorneys said Sabatini’s lawsuit would not be waved off by a judge. Cliff Shepard, a longtime government and contracts lawyer at the Maitland-based Shepard, Smith, Kohlmyer & Hand, said he expected the county to lose.

“It is my opinion this is misleading,” Shepard said. “I think that’s probably what a court will find.”

Osceola County also thinks it’s on solid ground as it prepares to defend itself. A county spokesperson said he couldn’t comment on the lawsuit itself, citing a long-standing policy, but he pointed out that state law requires the county to use specific language where voters mark their choice:

“The following question shall be placed on the ballot:

FOR the -cent sales tax

AGAINST THE -cent sales tax”

Read: Seminole County using taxpayer pennies to widen county roads

However, state law does not make any guidelines for the summary portion, which is what the lawsuit seeks.

Supporters of Orange County’s ongoing sales tax referendum wrote in their summary that they’re asking for a 1% increase. A recent referendum in Seminole County called the hike “one cent per dollar.”

For that reason, Shepard said the county’s explanation was misleading. He pointed to a recent lawsuit he was involved with in Jacksonville Beach, where backers of a referendum left the word “Beach” out of their petition as they collected signatures, even though the correct city was named in the referendum itself.

That was enough for a judge, who ruled it couldn’t appear on the ballot.

Read: Orange County to give update on sales tax increase proposal

No matter what, the Osceola County referendum will take place, since mail-in ballots have already been sent out. However, if the lawsuit prevails, the results will be nullified, forcing the county to hold a special election or try again during a future regular election.

That would risk the surtax expiring for the first time in decades, potentially costing the county, its cities and the school district millions.

“It doesn’t happen often that it’s severe enough to get it removed … and again, we’ll see if the court will ultimately determine that,” Shepard said. “In this case, I think that is a fairly likely event.”

Click here to download the free WFTV news and weather apps, click here to download the WFTV Now app for your smart TV and click here to stream Channel 9 Eyewitness News live.

©2022 Cox Media Group