Most Importantly, There is NO State Income Tax!
But there are a few other State Taxes that include:
State Sales Tax of 6% and some counties levy additional sales tax. Food, medicine and professional services are exempt from sales tax.
Florida’s tangible tax is applied to all business personal property and includes anything used in the business except real estate. All individuals, firms and corporations, that lease, manage, or have control of any tangible personal property are required to file a return before April 1st of each year. A penalty of 10 percent is assessed for failure to file a return.
In 1931, in order to raise revenue the state legislature enacted its first tax on intangible personal property. The most common assets reported on an intangible tax return would be corporate bonds, stocks, mutual funds, brokerage money market accounts and regularly listed or traded limited partnership interest. If you’re not sure whether an asset is taxable, you should check with your tax adviser or broker.
The following items are exempt from intangible tax:
Cash, CD’s, annuities, IRA accounts, US Government debt obligations, obligations issued by the State of Florida, its counties, municipalities, or taxing districts, Bank Money Market accounts, Notes secured by a lien on real property, interest in a general partnership, interest in a limited partnership not registered with SEC and Franchises.
The tax is assessed at the rate of one mill or $1.00 per $1,000.00 of valuation, based on the value of your assets beginning January 1 of each year. If the value of your stocks and bonds is more than $100,000.00 an additional one mill for a total of $2.00 per $1,000.00 of valuation is assessed for amounts exceeding $100,000.00. But, if your stocks, bonds and securities are valued at $20,000.00 ($40,000.00 for a couple filing jointly) or less on January 1, you do not pay any intangible tax for that year.
The tax is delinquent if not paid by July 1 and returns must be filed by June 30th. Mail your payment directly to the Florida Department of Revenue, Carlton Building, Tallahassee, Florida 32304. For more information, call the Department of Revenue at (904) 487-4215.