Florida Property Tax Information
Florida is notoriously known for its high property taxes, and those property taxes don’t only apply to homeowners either. Business owners in Florida, in fact, have to pay even higher property taxes than homeowners in the state do. Though the state government in Florida doesn’t collect property taxes, the local governments receive the majority of their income through the collection of property taxes.
Florida Tangible Personal Property
In Florida, tangible personal property is taxed, and tangible personal property is defined as all property other than the real estate that is used for business purposes. Equipment, furniture and any other tangible assets that are used by the business are all subject to taxation. Even leased equipment and leasehold improvements are subject to personal property tax in Florida.
Although property taxes for commercial and business owners are exceptionally high in Florida, there are exemptions that business owners can take advantage of in order to get a break on their taxes. For instance, property owners can receive a tangible personal property exemption of $25,000 if a timely tax return is filed. The return is considered the application for the tax exemption and is applied to the first $25,000 that is assessed for the business personal property. After receiving a TPP exemption, if the value of a business owner’s tangible personal property doesn’t reach $25,000 in subsequent years, then the requirement to file a return is waived. However, anything over $25,000 must be filed in order to keep receiving the exemption.
Businesses in Florida can also benefit from the following:
- No corporate income tax on limited partnerships
- No corporate income tax on subchapter S-corporations
- No state personal income tax guaranteed by constitutional provision
- No corporate franchise tax on capital stock
- No property tax on business inventories
- No property tax on goods-in-transit for up to 180 days
- No sales and use tax on goods manufactured or produced in Florida for export outside the state
- No sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
- No sales/use tax on co-generation of electricity
Although the property taxes themselves for business owners tends to be high in Florida, many argue that it balances itself out when these benefits are taken into consideration. Additionally, businesses tend to do well in Florida since it’s such a popular tourist destination.
A company like Assessment Technologies can assist Florida business owners in paying the least amount possible on their property taxes. They employ a unique valuation method that takes depreciation of machinery, market value of similar equipment and other factors into consideration when valuing commercial and business property. They’ll fight aggressively to get business owners refunds or reductions on their property taxes if they believe that the property was over-assessed.
Florida Property Tax Resource: http://dor.myflorida.com/property/Pages/default.aspx