For Immediate Release
March 2, 2006

Florida Proposes Sweeping Tax Relief

Florida Proposes Sweeping Tax Relief

Florida Proposes Sweeping Tax Relief

Changes amounting to $1.5 billion would apply to sales and use, income, property, and intangible personal property taxes.

Sales and Use Tax

An annual sales tax exemption of $26M for machinery and equipment to expand manufacturing production is proposed. Also proposed is a $40M exemption for all machinery and equipment used in research and development. In addition, Governor Jeb Bush plans to push for a full tax exemption on all production, research and development machinery and equipment used in the space and defense industry.

Income Tax

Changes come in the form of tax credits and incentives. $75M is proposed for corporate income tax credits for early stage venture capital to provide a financial backstop to lending institutions and private investors for investment in emerging enterprises in Florida . Also proposed is a tax incentive of $15M for hydrogen fuel vehicles, hydrogen and other clean fuel filling stations, hydrogen fuel cells, and production of bio-diesel and ethanol.

Property Tax

The tax rate that the state requires local school districts to levy as part of the K-12 education funding formula would be reduced by 9%. Also proposed would be a one-time $100 tax rebate to resident homeowners and mobile home owners as a result of the state’s budget surplus from taxes levied on increasing insurance, property costs and construction materials, much of which has been paid by Florida homeowners.

Intangible Personal Property Tax

The repeal of the state tax on savings and investments has been proposed, which would save Taxpayers $161M. The Governor has long believed that this tax is unfair and penalizes those who save and invest for the future. Eliminating this tax would benefit 300,000 Taxpayers and level the playing field for fair and reasonable treatment of Taxpayers by the state.

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com

 

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