Tax law in Florida includes the regulations and statutes that govern taxation at the state and local levels. Tax laws can be complex, and the specific regulations and procedures may vary based on individual circumstances and local jurisdictions.
Sales and Use Tax
Florida imposes a state sales tax on the sale or rental of tangible personal property, as well as certain services. The current state sales tax rate is 6%, but additional discretionary sales surtaxes may apply at the county level. Businesses in Florida are responsible for collecting and remitting sales tax to the Florida Department of Revenue.
Corporate Income Tax
Florida is one of the few states that does not impose a state-level income tax on corporations. However, corporations doing business in Florida may still be subject to federal income tax and other taxes, such as the federal alternative minimum tax.
Individual Income Tax
Like corporate income tax, Florida does not levy a state income tax on individuals. As a result, individuals in Florida are not required to file state income tax returns or pay state income tax on their personal earnings. Most of Florida’s revenue comes from other sources, such as sales tax and property tax.
Property Tax
Property tax is an important source of revenue for local governments in Florida. The amount of property tax owed is based on the assessed value of real property, including land and buildings. Property tax rates and assessment procedures vary across different counties and municipalities within Florida.
Documentary Stamp Tax
Florida imposes a documentary stamp tax on certain documents executed or delivered in the state. This includes deeds, promissory notes, mortgages, and other written obligations to pay money. The tax rate varies depending on the type of document and the transaction amount.
Tourist Development Tax
Many counties in Florida impose a tourist development tax, also known as a bed tax or resort tax. This tax is levied on short-term rentals, such as hotel rooms and vacation rentals, and is used to fund tourism-related initiatives and infrastructure projects.
Fuel and Excise Taxes
Florida imposes taxes on motor fuel, diesel fuel, and other petroleum products. These taxes are included in the retail price of fuel. Additionally, there are excise taxes on tobacco products, alcoholic beverages, and certain recreational activities.
Miscellaneous Taxes and Fees
Florida also imposes various other taxes and fees, such as communication services tax, severance tax on certain natural resources, insurance premium tax, and professional license taxes.