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.