County explores sales tax to help homeless

After Sarasota County commissioners rejected three potential sites for a homeless shelter earlier this month, the county has shifted its approach in how it addresses homelessness issues. 

And it could affect your tab.

Rather than lead an effort to build a come-as-you-are homeless shelter, the county will focus on supporting a network of government and private groups that provides beds and connects individuals with substance abuse or mental health counseling, said Wayne Applebee, Sarasota County director of homeless services

That support will still require funding, which is why the county is exploring a potential 1% sales tax on food and beverage. 

The idea is to focus on fees and taxes with a broad base that wouldn’t be imposed exclusively on property owners. Such a tax would be designated for homeless and domestic violence programs. 

The possibility of establishing such a tax is still in early exploratory stages, according to Applebee. Any serious discussion about the topic would have to wait until the first fiscal 2017 budget meeting this March, at the earliest. Establishing such a tax would require state Legislature approval.

State law mandates that such a tax could only apply to establishments with at least $400,000 in annual revenue, and it would only apply to businesses licensed to serve food and beverages on the premises, so mostly bars and restaurants. 

Proceeds from the tax would be used to fund homeless services directly, though the state requires revenues be split, with 85% for homeless services and 15% for domestic abuse services.

Only one county in the state, Miami-Dade County, which generated approximately $22.5 million through the tax last fiscal year, uses this approach to fund homelessness programs.

“The food and beverage tax is a pivotal part of what we do,” said Ron Book, chairman of the $61 million Miami-Dade Homeless Trust.

Book said that he and colleagues crafted the language for Miami’s tax in 1993 for the state Legislature, where it passed “with substantial support” in the final legislative session of that year.

The food and beverage tax pays for 70% of the operation of Miami-Dade’s jail-diversion facilities, with remaining funds coming from the state. Miami-Dade also uses its food and beverage tax to pay for operating costs associated with permanent, affordable housing and funds programs to deliver prescription medications to homeless people where they live, according to Book.

If the county considers a food and beverage tax, it could face opposition from restaurant industry groups, Applebee said.

In recent months, Sarasota County looked into, but abandoned, the possibility of a special taxing district authorized by Florida statutes to pay for mental health services, which would allow the county to reallocate funds it spends on these services to address homelessness.

Applebee said the county is still open to other funding models, such as the one Pinellas County uses for its shelter, though hurdles exist. Pinellas County’s model requires user cities to contribute to expenses, Applebee said.

“While the county remains open to this approach, there have been no financial partners identified,” he said.