PRESS RELEASE

TALLAHASSEE, FL – Florida TaxWatch today issued a report on how Florida’s state and local taxes compare with the other 49 states. The report shows that Florida has continued to avoid significant tax increases while a strong economy has provided for increasing revenue.

Compared to other states, Florida's state and local tax burden is lower than average. Because cities and counties are responsible for providing more services, Florida's tax burden is shifting from state to local governments. In FY 1998, local taxes comprised 41% of the total tax burden in Florida. Although Florida's state tax rankings are relatively low, local as well as combined state and local rankings are coming closer to the national average.

“The bad news is taxes are rising fast at the local level. The good news is Florida taxpayers can do something about it,” said Dominic Calabro, president and CEO of Florida TaxWatch. “We have an opportunity to be stewards in our communities which will result in greater government value and accountability.”

Florida is one of seven states without a personal income tax. Of the four largest states, Florida and Texas have no personal income tax. Florida's Constitution also prohibits a state property tax except on intangible property such as stocks and bonds. Florida is one of eleven states without property tax.

Key Facts and Findings

Florida's per capita state and local tax ranking has risen to 27th in the nation –- three places higher than the previous year. These taxes totaled $2,328 in 1996, up $76.04 from the previous year. State and local taxes equaled 10.43% of Floridians’ personal income. This ranks Florida 42nd, down two spots from the previous year.

Florida's per capita state tax ranking dropped from 39th to 41st in the nation in 1998. State taxes have increased in Florida and nationally. Each Floridian's tax bill rose 4.9% ($71) in 1998, which is still 1.1% below the national average. Florida's per capita state tax collections also grew at a slower rate than the national average. Nationally, per capita state taxes rose 5% in 1997 and 6% in 1998. Florida's state tax rose 5.2% in 1997 and 4.9% in 1998, a difference of only 0.3%.

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, up from 6% the two previous years. This is still below the national average.

Florida's selective sales tax ranking has fallen five spots to number 26, moving us closer to the national average. Right now Florida's selective sales tax is $268.42 compared to the national average of $264.45. Florida has the highest alcoholic beverage tax rate in the nation, with 37% of selective taxes coming from alcoholic beverage purchases.

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.