Tax & Finance Overview

Many areas within the region are pro-active in offering incentives for growth and relocation. Many of Florida's largest banks and insurance companies maintain a presence in the region. It is one of the most desirable business locations in the country.

State Taxes

General Taxes – There is no personal income tax in Florida. It is constitutionally prohibited. There is no property tax on autos or tangible personal property. There is no sales tax on groceries; over-the-counter medicines, prescriptions and some health aids as eye glasses and dentures.

Corporate Income Tax – The corporate tax is a uniform 5.5 percent rate. It is one of the lowest rates in the nation. The tax base is federal taxable income adjusted for certain items. Adjusted federal income is apportioned to Florida by a three-factor formula weighted as:

• property – 25 percent
• payroll – 25 percent
• sales – 50 percent,

Charter Tax – Organizations must pay fees and taxes when filing documents pertaining to articles of incorporation; changes to incorporation, mergers, consolidations, or dissolution of the organization. Tax is based on authorized capital stock.

Sales & Use Tax – The sales tax rate is 6 percent for the total price on the retail sale or rental of the following items:

• tangible personal property
• certain services & admissions
• certain rentals and leases of some real properties
• transient living accommodations on rentals less than six months.

• Purchases of items by dealers for resale are exempt.
• Purchases of new machinery and equipment by new manufacturing facilities locating in Florida are exempt.
• Purchases of machinery and equipment by existing manufacturers when the taxes on such purchases exceeds $100,000; or when an increase in productivity of 10 percent or more exists, are exempt.

1. boiler fuels used in manufacturing.
2. raw materials used in the manufacturing process when they become a component part of a finished product.
3. containers, sacks, bags, labels, that are used once for packaging tangible property for sale or shipment.
4. items purchased that become part of a final product, which is necessary to the delivery of the product. For example, cans for canned food; boxes in which items are packaged when sold to the consumer. Exception, if the container can be used more than once, it is not exempt from sales tax.
5. Cost of electricity used to operate machinery that manufactures items of tangible personal property.
6. Capital equipment of $50,000 or less. This exemption is claimed by publishing firms and printing companies.

• Groceries and produce. Exceptions that are taxable are: soft drinks and food cooked or prepared on store, restaurant or like businesses premises.
• Feed, seed, fertilizers and farm crop protection materials.
• Single-family residences and apartments renting to permanent residences.
• Recurring charges for residential telephone use and residential long distance calls.

Intangible Taxes – There are two kinds of intangible property tax:

1. Annual tax of $2 per thousand of just valuation as of January 1 of all taxable intangible personal property. This includes, and is not limited to, shares of stock in corporations and unincorporated businesses; beneficial interest in intangibles held in trust for Florida residents; most bonds - U.S., Florida, county and municipal bonds are exempt - notes; accounts receivable and other obligations for payment, except those secured by realty; interest in a limited partnership that is registered with the Securities & Exchange Commission; and certain leasehold estates in governmental property. There is a $20,000 exemption for individuals and a $40,000 exemption for married couples filing jointly. The corporate is $2 per $1,000 with no exemptions.
2. Non-recurring tax of $2 per $1000 of just valuation of notes, bonds and other obligations to pay money that is secured by a mortgage, deed of trust or other lien in real property in Florida. Taxes become due January 1, with a discount of up to four percent allowed for early payment.

   Tangible Personal Property: The tax base consists of all forms of tangible personal property in Florida. Examples are business fixtures, stocks in trade and supplies; equipment and machinery for shops; livestock; plants and farms. Household goods and personal items used by homeowners in their home are exempt. Assessment is just value.

   Documentary Stamp Taxes – Taxes are levied at specific rates on the following documents:

   • Notes – promissory notes, mortgages, trust deeds, security agreements and other written promises to pay money, the tax is 32 cents per $100 of principal indebtedness.
   • Stock – Par Value: Original issue tax rate is 32 cents per $100 on par value of the certificate. No Par Value: Original issue tax rate is 32 cents per $100 of the actual value of the certificate. Tax is not taken on transfer of stock.
   • Deeds: For documents that convey an interest in real estate, the tax rate is 55 cents per $100 of the total paid, or to be paid for the property. Exception, when the consideration paid or given in exchange for real estate includes property other than money. It is presumed that the consideration is equal to the fair marke value of the property.
   • Estate Tax: Estate of deceased residents are taxed at the amount allowable as credits against the federal estat tax. Fo non-residents proportionate amounts are levied against real property or personal property based in Florida. Florida's estate taxes ae limited by the state constitution to the federal credit and exist only as long as the federal credit is available.