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What would you do with a billion dollars?

There are probably some things that come to mind immediately for you. And to me. But it’s unlikely those are the same things.

So it goes in Tallahassee, where the Legislature seems to be on the verge of a windfall from passing an online sales tax bill. Proposed for years by Sen. Joe Gruters, R-Sarasota, the massive hit to brick-and-mortar retailers in the pandemic finally gave this bill wings this year, though it’s naïve to think the bigger bounty expected from collecting the tax wasn’t a main factor in changing many minds.

If this bill becomes law, it will generate nearly $1 billion in state revenue this year and more in subsequent years. Considering that state estimators early on told lawmakers the budget would take a $5 billion hit because of COVID-19, the chance to wipe a fifth of the losses away makes an environment where Gruters’ legislation looks ripe for the Governor’s signature. That is if Ron DeSantis can find the stomach for something that, while not technically a sales tax, will mean Floridians pay more on their Amazon purchases.

But after smooth sailing at three committee stops, Gruters ran into new-found Democratic opposition on the floor this week. It still passed in the chamber, but an amendment to his bill that promises the new revenue will replenish an unemployment trust — at least for now — caught even co-sponsors of the bill unawares.

Democrats balked in large part because that’s just not the first place they would put the money. Senate leadership wants it in the trust to avoid a further spike in unemployment taxes on businesses after a huge number of claims last year left the state in a crisis. But Florida, even after a modest and automatic increased business tax, still charges less to employers for unemployment fees than any other state in the union.

Why can’t the money instead be used to guarantee higher unemployment claims? Or to guarantee the affordable housing trust won’t be raised? It’s clear some hoped the billion-dollar boon could be used to help a number of areas hurting the budget. At the very least, Democrats hoped they could hold off on the online tax vote until they confirmed the Legislature intends to address their priorities a little before Session ends.

Instead, Gruters’ bill passed on Thursday, but on a 30-10 vote instead of unanimously. And honestly, that’s for the best.

Why? This money has to go somewhere, but even $1 billion is a modest amount when it comes to funding the government in the third largest state of the union. To divide it too many ways means watering down the advantage that comes with finally making online retailers pay their fair share.

If Democrats ran the Senate, it’s quite likely this money would be focused on the working class instead of employers. Republicans are in charge, so the money will go to help small business and job creators. Both groups are hurting in this COVID-19 world. If you rank social problem A and social problem B in different orders, well, that’s what political differences are.

The good news is this money will come to the state even after the unemployment trust gets replenished. If Democrats want to decide how to spend it two years from now, they'll need to win some elections next year, when every seat of the Legislature is up for grabs.

House Democrats seemed to get this in committee, where the plan to rebuild the trust seems to be the only reason e-fairness even will be considered. This isn’t the time to quibble over how monies get earmarked. It’s a time to relish any opportunity to find a way to help Florida after an historically terrible year.

Jacob Ogles is contributing senior editor for SRQ MEDIA. The Under the Hood column reflects his views and commentary on state and local politics. 

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