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Florida Tax Information
Summary
Business Inventory
None
Corporate Franchise Tax
None
Corporate Income Tax
5.5% of Florida net income
Gasoline Tax
11.8 cents per gallon
Gross Receipts Tax
None
Intangible Tax
1 mil
Inventory Tax
None
Personal Income Tax
None
Sales Tax
6%
The property tax is Florida's largest local
government revenue source. Property tax revenues play a major role
in financing public education, fire and police protection and other
public services. Statewide, counties, cities and special taxing
authorities levied more than $15.3 billion in property taxes in 2000
on more than 9.6 million parcels valued at over $1.02 TRILLION. This
makes the property tax the second largest tax administered by
government in Florida, ranking only slightly behind the State's
sales and use tax.
What new residents need to know about Florida
taxes.
You are considered a Florida resident ...
when your true, fixed and permanent home and principal establishment
is in Florida. Filing a declaration of domicile, qualifying for
homestead exemption or registering to vote in Florida can establish
residency. Other actions, such as obtaining a Florida driver's
license, only indicate an intent to establish residency.
Welcome to Florida!
Here is information for you!
Intangible Personal Property Tax
Every person who is a legal resident or is
domiciled in Florida on January 1 of the tax year, must file an
intangible tax return if they own, manage or control certain
intangible personal property and if the tax obligation is $60 or
more.
Some common examples of taxable intangible assets
include: stocks, bonds, certain money market funds, mutual funds,
loans, notes, certain accounts receivable, and limited partnership
interests. Some examples of exempt assets include: money;
franchises; and qualified IRAs, employee retirement plans, and
deferred compensation plans.
The tax is calculated based on your filing
status. For individual filers the first $20,000 of total taxable
assets are exempt. Assets above $20,000 are taxed at $1 per thousand
dollars of value. For joint filers the first $40,000 of total
taxable assets are exempt. Assets valued above $40,000 are taxed at
$1 per thousand dollars of value.
Unlike federal income tax, the intangible tax
applies to the calendar year in which the assets were valued, and
must be paid then. It is an annual tax based on the market value, as
of January 1, of the intangible property owned by a Florida resident
or other person obligated to pay the tax. The return can be filed as
early as January and is late if postmarked after June 30. Discounts
apply for early payment; penalties and interest apply for late
payments.
Sales and Use Tax
Florida's sales and use tax rate is 6 percent.
Each retail sale, admission charge, storage, use, or rental is
taxable, along with some services. Some items are specifically
exempt. Consumers pay the tax, plus any county imposed taxes, at the
time of purchase.
Here are some examples of taxable business
activities, product use or consumption:
- Sales of taxable items at retail.
- Repairs or alterations of tangible personal property.
- Rental or lease of real property (e.g., commercial office
space, mini-warehouses, short-term living accommodations).
- Rental or lease of personal property (e.g., vehicles,
machinery, equipment, or other goods).
- Charges for admission to any place of amusement, sport, or
recreation.
- Selling or providing telecommunication services.
- Operating private membership clubs that provide recreational
or physical fitness facilities.
- Manufacturing or producing goods for sale at retail.
- Importing goods from any state or foreign county, for sale at
retail or use.
- Selling service warranty contracts.
- Using mail-order products on which no sales tax was charged.
- Operating vending or amusement machines.
- Providing taxable services (e.g., investigative and crime
protection services, certain types of nonresidential cleaning,
and nonresidential pest control services).
Discretionary Sales Surtax
Under specific conditions, Florida counties levy
a discretionary sales surtax on all transactions subject to sales
and use tax. The surtax is levied on the first $5,000 on any item of
tangible personal property. It is collected at the rate imposed in
the county where the merchandise or service is sold or delivered. A
list of counties imposing a discretionary sales surtax administered
by the Department, and the rate, is available upon request. To
obtain the list, refer to the "For Information and Forms"
section below or contact your nearest Florida Department of Revenue
service center.
Use Tax on Out-of-State Purchases
Unless specifically exempt, merchandise purchased
out of state is subject to tax when brought into the state within 6
months of the purchase date. This "use tax," as it is
commonly called, complements the state sales tax. Use tax applies to
untaxed items purchased from out-of-state sources such as mail-order
catalogs, the Internet, television shopping networks, auctions and
toll-free telephone shopping services. The use tax is also due on
items purchased during out-of-state travel, when the merchandise
enters the individual's home state.
If the seller does not collect the tax, or
collects it at a rate less than 6 percent, you are responsible for
paying the 6 percent use tax, plus any applicable county imposed
taxes, directly to the Florida Department of Revenue. A credit for
any lawfully imposed taxes paid to another state, U.S. territory, or
the District of Columbia is permitted. Credit is not given for taxes
paid to another country. Use tax is due on the 1st and late after
the 20th day of the month following the quarter in which the
purchase was made. Complete an Out-of-State Purchase Return (Form DR-15MO)
to file and pay use tax. If the tax owed is less than one dollar,
you do not have to file.
Ad Valorem (Property) Tax
If you purchase a home in Florida, you will pay
ad valorem or "property" tax based on the taxable value of
the property. Ad valorem taxes are assessed by the county property
appraiser and collected annually by the tax collector's office.
A $25,000 homestead exemption is available to
homeowners who meet certain requirements. Certain exemptions are
also available to blind persons and other physically-challenged
residents. Call your county property appraiser for details.
Other Taxes and Fees
Florida does not impose personal income,
inheritance or gift taxes. However, there are other taxes and fees
that, in certain counties or circumstances, Florida residents may be
required to pay, such as: convention development tax, local option
tourist tax, documentary stamp tax, estate tax, lead-acid battery
fee, new tire fee, motor vehicle fee (Lemon Law), or rental car
surcharge.
Looking at Business Opportunities in FL?
Most businesses are subject to sales and use tax,
discretionary sales surtax, corporate income tax, and intangible
personal property tax. If your business is subject to sales tax, you
must register as a sales and use tax dealer before you begin
conducting business in Florida. To register, complete an Application
to Collect and/or Report Tax in Florida (Form
DR-1).
Information and forms are available at:
http://www.myflorida.com/dor/
AX INFORMATION SERVICES
FLORIDA DEPARTMENT OF REVENUE
1379 BLOUNTSTOWN HWY
TALLAHASSEE FL 32304-2716 |
