Gov. Martinez Signs Repeal of Service Tax
Gov. Bob Martinez signed a bill Friday repealing an unpopular state tax on many professional services and enacting a $1.2-billion increase in the sales tax on goods.
The action ended months of bickering between Martinez, a first-term Republican, and the Democratic-controlled Legislature, which was splintered by three special sessions needed to repeal the 5% services tax.
Several hours after the signing, Standard & Poor’s Corp. in New York lifted Florida’s AA bond rating from “credit watch,” a precarious financial status assigned earlier this fall when there was a threat of repeal without a replacement tax.
The tax had been imposed on a broad range of domestic and professional services, including advertising.
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