Florida

Taxation

Florida's constitution prohibits a personal income tax, and the 6% sales and use tax provides over half of state revenue. Over half of Florida's non-federal revenue is collected at the local level, however, most through local property taxes, but there are also some local sales taxes, ranging up to 1.5%. The state sales tax applies to most retail items (but excludes groceries, medicines, and certain other items), as well as to car and hotel room rentals and theater admissions. The use tax is levied on wholesale items brought into Florida for sale. Various selective sales taxes (excises) are imposed, including the gasoline tax, which was raised in 2002. The state corporate income tax is a flat 5.5% on net income, over $5,000 with an alternative minimum tax (AMT) of 3.3%. The state estate tax is set equal to the state tax exemption from the federal estate tax, and thus is scheduled to be phased out by 2007 in tandem with the phase out of the federal tax credit absent any countervailing action by the Florida government. Estimated state losses from the phase-out of its estate tax are -$153.2 million in 2003, -$361.6 million in 2004, and -$930.3 million in 2007. Other taxes include state property taxes, an oil, gas and sulfur production tax, a solid minerals severance tax and state license fees.

In 2002, state revenues in Florida totaled $24.8 billion, of which 58% came from the general sales tax, 18% from selective sales taxes, 7.6% from documentary and stock transfer taxes, 6.2% from license fees and 4.9% from corporate income taxes.

The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.

Florida

  ($000) PER CAPITA
Total Taxes 24,815,964 1,484.82
Property taxes 427,626 25.59
Sales and gross receipts 18,920,191 1,132.05
General sales and gross receipts 14,408,709 862.12
Selective sales taxes 4,511,482 269.94
Alcoholic beverage 547,682 32.77
Amusements (X) (X)
Insurance Premiums 414,369 24.79
Motor fuels 1,808,863 108.23
Pari-mutuels 29,822 1.78
Public utilities 769,480 46.04
Tobacco products 466,464 27.91
Other selective sales 474,802 28.41
Licenses 1,556,806 93.15
Alcoholic beverages 30,607 1.83
Amusements 4,697 0.28
Corporation 128,147 7.67
Hunting and fishing 12,926 0.77
Motor vehicle 940,387 56.27
Motor vehicle operators 121,316 7.26
Public utility 30,503 1.83
Occupation and business, NEC 281,803 16.86
Other 6,420 0.38
Other taxes 3,911,341 234.03
Individual income (X) (X)
Corporation net income 1,218,864 72.93
Death and gift 751,611 44.97
Documentary and stock transfer 1,900,752 113.73
Severance 40,114 2.4
Other (X) (X)