Florida Citrus Commission to try to revive tax on imported orange juice.

Byline: Kevin Bouffard

Oct. 31--The Florida Citrus Commission voted to take a second bite of the orange in seeking to revive a state tax on imported orange juice that would not violate the Constitution or international trade law. If the Legislature approves the new tax, it essentially would revive the so-called "equalization tax," which the commission was forced to give up four years ago to settle a lawsuit.

The Citrus Commission, the governing body of the Florida Department of Citrus, voted unanimously during a Tuesday workshop to obtain a legal analysis of the new tax as proposed by Hank Campbell, the department's counsel and a lawyer with the Lakeland firm of GrayRobinson.

Commission Chairman Benny Albritton, a Wauchula grower, called the workshop to address six proposals to address the "free rider" issue -- the fact that orange juice imported to the state, primarily from Brazil, pays no taxes to support the department's biggest program for marketing Florida OJ.

That wasn't the case before 2003, when juice processors paid tax on imports equivalent to the state tax on juice oranges grown in Florida.

Five companies that accounted for about 75 percent of imported OJ products challenged the tax in state court. They argued the tax amounted to an illegal tariff because the U.S. Constitution gives Congress the exclusive authority to levy tariffs.

In June 2003, the Citrus Commission accepted a settlement of the lawsuit that exempted importers from paying two-thirds of the equalization tax, or the portion that supports the department's marketing program. The remaining third supports regulatory and research programs.