FL S1406

Increases the state sales tax rate by 2.5 cents (from 6% to 8.5%) on most taxable transactions, effective January 1, 2012, with the additional revenue designated as the "Specified Education Sales Tax"

Eliminates the required local effort school property tax that districts must levy, with the elimination taking effect November 2012, replacing approximately $8 billion in property tax revenue with sales tax proceeds

Allocates 29% of all sales tax proceeds exclusively to replace required local effort funding for school districts, distributed according to existing Florida Education Finance Program formulas

Creates a reserve fund provision requiring that if the reserve exceeds 50% of the estimated annual required local effort amount, excess funds must be distributed to local school boards to reduce local option school property taxes

Maintains existing formulas for calculating school funding allocations but shifts the revenue source from property tax millage adjustments to sales tax proceeds, with the stated goal of stimulating economic growth and job creation