Resolution 2007-111
RESOLUTION NO. 2007 _ III
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS, COLLIER COUNTY,
FLORIDA, URGING MEMBERS OF THE SENATE AND HOUSE OF REPRESENTATIVES
OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED TO SUPPORT
H.R. 1023 AND S. 777 TO REPEALTHE IMPOSITION OF WITHHOLDING ON CERTAIN
PAYMENTS MADE TO VENDORS BY GOVERNMENT ENTITIES IMPOSED BY SECTION
511 OF THE TAX INCREASE PREVENTION AND RECONDILlACTION ACT OF 2005,
AND DIRECTING THAT THIS RESOLUTION BE FORWARDED TO SENATORS BILL
NELSON AND MEL MARTINEZ AND REPRESENTATIVES CONNIE MACK AND MARIO
DIAZ-BALART.
WHEREAS, this far-reaching new requirement was inserted as a last-minute revenue
raiser into the Tax Reconciliation Act of 2005 (Section 511) that was signed by the
President in May 2006; and
WHEREAS, with no committee hearings having been held supporters argue that
imposing with holdings of three percent on non-wage payments by Federal, State and
local governments would improve taxpayer compliance, reduce the "tax gap", and
promote fairness in the tax system, but this provision focuses only on payments made
by governments unrelated to any tax liabilities; and
WHEREAS, Section 511 is estimated to "increase" revenue by $7 billion from 2011 to
2015, but raises $6 billion of that amount in 2011 solely due to accelerated tax receipts
and not an actual revenue increase from improved tax compliance; and
WHEREAS, Collier County will be burdened with ongoing costs to administer this
unfunded mandate which will be substantial and complicated to implement; and
WHEREAS, Collier County will incur increased costs with all vendors affected by this
mandate as a result of their loss of vital funds needed to operate day-to-day operations,
which they will be forced to pass along to customers; and
WHEREAS, construction projects will be significantly impacted as profits are not realized
until the end of a multiyear contract, but withholding will occur throughout the project;
and
WHEREAS, the three percent withholding and administrative costs burden on the
contractors/vendors will ultimately be funded by the taxpayers; and
WHEREAS, Collier County indirectly bears the burden of administrative costs of
contractors, Section 511 will increase the cost of goods and services purchased; and
WHEREAS, with the contractors/vendors revenue streams tied up in withholding, these
firms could be deterred from working with Collier County,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY FLORIDA, THAT:
1. The foregoing "WHEREAS" clauses are hereby incorporated herein as an integral
part of this Resolution.
2. For each of the above reasons, and many others too numerous to include in this
Resolution, the Board for County Commissioners of Collier County, Florida,
hereby expresses its strong support for the proposed H.R. 1023 and S.777.
3. Collier County's Board of County Commissioners urges members of the Senate
and House of Representatives of the United States of America to support H.R.
1023 and S.777, and if passed by both Houses of the Congress to forward this bill
to President Bush for signature, and
4. County Manager, James V Mudd, is hereby directed to immediately distribute a
copy of this Resolution to Senators Bill Nelson and Mel Martinez and
Representatives Connie Mack and Mario Diaz-Balart.
5. This Resolution shall be effective upon adoption.
Passed and duly ADOPTED
Florida, the 'iJtIv day of
the Board of County Commissioners of Collier County,
,2007.
ATTEST:.'}: /'0
DWIGHT E. BBQCK, Cr~k
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Approved as to form and legal sufficiency:
By, ~drj/(
Robert Zac
Assistant County Attorney
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FRIDA
By:
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