Florida – New Law Allows Local Sales Tax to Fund Pensions

SALT Report 3794 – Florida cities and counties will have the option of funding the pension liabilities of government plans via a half-cent sales tax under new legislation that Gov. Rick Scott (R) signed into law.

The legislation, signed March 25, 2016, takes effect July 1 and will let municipalities propose a local sales tax to aid underfunded local pension plans, under certain circumstances and subject to approval by a voter referendum. To take advantage of the tax option, the relevant pension plans must prohibit new enrollees into any defined benefit plan, must be below 80 percent funded and must require employees to contribute at least 10 percent of their salaries to the retirement plan.

For further Information:

http://www.bna.com/new-florida-law-n57982069242/