This is Florida TaxWatch's annual report of how Florida's state and local taxes compare with those of the other 49 states. The State of Florida has continued to avoid significant tax increases while a strong economy has provided for increasing revenue. Most states have also been holding the line on taxes, so Floridians' state tax burden relative to that of the rest of the nation has not changed much. However, 1998 was the first year since 1995 that Florida's state tax collections grew slower than the national average, resulting in our per capita state tax burden ranking falling two spots to 41st, back to where it was in 1995.

Relative to other states, Florida's state and local tax burden is lower than average. But with cities and counties responsible for providing more services, the tax burden in Florida is shifting from state government to local governments. Local taxes account for 41% 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 27th, up three spots from the previous year. The $2,328 in Florida's per capita collections is 90% of the national average.

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. After two years of climbing one spot, it fell back to 41st in 1998. As a percent of personal income (6.0%), Florida ranks 42nd in state taxes, the same rank as the prior two years.

Local Taxes. Floridians' per capita local tax ranking rose three places to 20th in 1996. The largest component of local taxes, the property tax, rose two spots to 16th. Floridians' per capita property tax burden is 2% 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 1998, but the latest available data for local governments is FY 1996. So while state tax rankings are for 1998, any local tax ranking -- or combined state and local ranking -- will be for 1996.

Key Facts and Findings

Florida's per capita state tax ranking fell two spots from 39th to 41st in 1998, the same ranking it held in 1995. Each Floridian's tax bill rose $71 (4.9%) in 1998, reaching $1,509. This is still below the national average which rose $101 (6.0%) to $1,761.

Nationally, per capita state tax collections grew faster in 1998 than in 1997 with growth of 6.0% in 1998 compared to 5.0% in 1997. Tax collections grew more slowly in Florida over the same time, at 4.9% in 1998 compared to 5.2% in 1997.

Florida's per capita combined state and local tax ranking rose three spots in 1996 (latest available local data), from 30th to 27th. These taxes totaled $2,328 in 1996, up $76 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 had the nation's 20th largest per capita local tax burden in 1996, rising three spots from 1995 (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 6.2% of Floridians' personal income, and state and local combine to take out 10.4%. This compares to 7.0% and 11.4%, respectively, nationally. Florida's rankings for taxes as a percent of personal income are: state - 42nd; local - 18th; and combined state and local - 41st.

Floridians' per capita burden for local government's largest tax source -- the property tax -- increased $10 in 1995, to $768. Florida's ranking rose to 16th, up two spots from 1995, and $16 above the national average.

Transaction taxes (general and selective sales taxes) account for 75% of all Florida's state tax collections. This compares to the national average of 48%. Florida has the fifth largest per capita general sales tax collections, and it increased by $42 in 1998, reaching $866. Floridians' selective sales tax (taxes on motor fuels, tobacco, alcoholic beverages, etc.) ranking is 26th. Per capita collections of these taxes now total $268.

Florida is one of seven states without a personal income tax. Of the four largest states, Florida and Texas have no personal income tax.

NEW FEATURE. Florida TaxWatch has included a table on Per Capita State Debt Burden to How Florida Compares. In this first year of tracking, Florida ranks 36th -- 64% of the national average -- with a per capita burden of $1,093.