November 1998
State Taxes - FY 1997 Local Taxes - FY 1995
This is Florida TaxWatch's annual report of how Florida's state and local taxes compare with those of the other 49 states. State governments in Florida and many other states have largely avoided significant tax increases in the past few years. The economy has performed well enough to provide significant growth in tax collections. So, while Florida has had no major tax increases, it's per capita state tax collection ranking has risen one spot in each of the last two years (1996 and 1997). Florida 's state tax ranking stands at 39th in 1997, up two spots from 1995 but down three from 1994.
Relative to other states, Florida's state and local tax burden is lower than average. But as cities and counties pick up more responsibility for providing services, the tax burden in Florida is shifting from state government to local governments. Local taxes now account for 42% of total state and local taxes in Florida. Floridians' state tax rankings remain relatively low, but local -- and combined state and local -- rankings are moving closer to the national average. Florida's combined state and local tax ranking is 30th. The $2,252 in Florida's per capita collections is 93% of the national average, the largest percentage ever.
State Taxes. After reaching it's all-time high at 36th in 1994, Florida's per capita tax collection ranking fell five spots in 1995. Since then, it has climbed back two places and stands at 39th in 1997. As a percent of personal income (6.0%), Florida ranks 42nd in state taxes, the same rank as 1996.
Local Taxes. Floridians' per capita local tax ranking fell one place to 23rd in 1995. The largest component of local taxes, the property tax, rose one spot to 18th, above the national average.
Note: Due to the availability of U.S. Census Bureau data for
state governments, this report includes state tax collection data for FY 1997,
but the latest available data for local governments is FY 1995. So while state
tax rankings are for 1997, any local tax ranking -- or combined state and local
ranking -- will be for 1995.
The Florida Legislature has continued a "no-new taxes" stance and as long as that position prevails nationwide as well, Florida's relative tax burden will not change drastically. Total state tax collections should increase 4.1% in FY 1998, leading to per capita growth of 2.3%. While local property taxes are still growing much slower than during the 1980s, expected growth of 7.1% in 1998 is the largest since 1991. The current Legislature is talking more about tax reduction -- such as repealing the state intangibles tax -- than tax hikes. With expected growth in property taxes and some counties considering new local option tax levies, the trend of Floridians' tax burden shifting to the local level should continue. |
Florida's per capita state tax ranking
rose one spot from 40th to 39th in 1997, the second straight year it climbed one
rank. However, this ranking is still three spots below where it was in three
years before. Each Floridian's tax bill rose $70 (5.2%) in 1997, reaching
$1,438. This is still below the national average which rose $79 (5.0%) to
$1,660.
Per capita state tax collections, both
nationally and in Florida, grew faster in 1997 than in 1996, although this is due
more to economic growth than tax hikes. Growth of 5.2% in Florida and 5.0%
nationally during 1997 compares to 4.3% and 3.9% in 1996.
Florida's per capita combined state and
local tax ranking fell one spot in 1995 (latest available local data), from 29th
to 30th. These taxes totalled $2,252 in 1995, up $66 from the previous year.
Although the tax burden in dollars is
smaller, Florida's local governments tax citizens relatively higher than state
government when compared to the other 49 states. Floridians' have the nation's
23rd largest per capita local tax burden in 1995, down one spot from 1994 (latest
available data).
When viewed in terms of percentage of
personal income, Florida's tax rankings are lower than its per capita rankings.
State taxes take 6.0% of Floridians' personal income and state and local combine
to take out 10.4%. This compares to 6.9% and 11.4%, respectively, nationally.
Florida's ranking for taxes as a percent of personal income: State - 42nd; Local
- 22nd; and combined State and Local - 42th.
Floridians' per capita burden for local
government's largest tax source -- the property tax -- increased $19 in 1995, to
$758. Florida's ranking rose to 18th, up one spot from 1994, and above the
national average.
Transaction taxes (general and selective
sales taxes) account for more than 3/4 (76%) of all Florida's state tax
collections. This compares to the national average of 48%. Florida has the fourth
largest per capita general sales tax collections, and it increased by $30 in
1997, reaching $824. Floridians' selective sales (tax on motor fuels, tobacco,
alcoholic beverages, etc.) tax ranking of 23rd is also above the national
average. Per capita collections of these taxes now total $274.
Florida's corporate income tax collections
increased significantly in 1997, and the per capita ranking rose seven spots to
30th.
Florida is one of seven states without a
personal income tax. Of the four largest states, Florida and Texas have no
personal income tax.
