Floridians’ tax burden is going to decrease but so is our ability to pay for it
Every year, right around the usual April 15 deadline to pay your federal taxes, Florida TaxWatch releases our Taxpayer Independence Day report. This marks the symbolic date that Floridians are finally earning money for themselves–not for the government. This assumes that every dollar earned since January 1 goes to pay federal, state, and local tax obligations. This measure of tax burden is based on the relative size of all taxes paid in Florida to our state’s total personal income and serves as a gauge for how fast government is growing versus our ability to pay for it.
It appears the 2020 Legislature will cut taxes again. As has been a recent practice, the House Ways & Means Committee developed a package of tax cuts and other tax-related provisions, while the Senate has moved individual tax bills through committee. We likely will not see the Senate’s full tax proposal until the House bill (HB 7097) reaches the Senate floor and it offers an amendment.
Florida Shouldn’t “Eat Our Seed Corn” by Diverting Tourist Development Tax Revenue
Tourist Development Taxes (TDTs) play a vital role in Florida counties’ promotion of tourism in their areas. Over the years, the Legislature has added more and more authorized uses of this revenue, diluting the funding available for tourism promotion and advertising. During the 2020 session, efforts to further expanded the authorized uses are continuing. The “slippery slope” warning raised by the tourism industry and Florida TaxWatch in the past has become a reality.
Local taxing and spending is a major part of Florida government operations. More than half of all Florida government revenue (53.1 percent) is raised at the local level, one of the highest shares in the nation. Florida’s 66 county governments (plus Jacksonville’s consolidated government), more than 400 municipal governments, and approximately 1,000 independent special districts spend nearly $80 billion annually. This report compares the magnitude and makeup of Florida’s local governments’ fiscal operations. It does not attempt to compare or evaluate levels of service.
The 2019 Edition of this annual pocket guide gives taxpayers and elected officials great insight as to how Florida's taxes compare to other states and the national average across a wide variety of metrics.
On Thursday, May 2, the Senate took up the tax package passed by the House (HB 7123) and adopted a strike-all amendment that put the Senate package on the bill. It kept many of the provisions (with some changes), added some new provisions, and removed one controversial provision, and changed another.
On Sunday, April 14, Florida TaxWatch joins the taxpayers in our state in celebrating Florida Taxpayer Independence Day 2019. On that day, Floridians are finally earning money for themselves–not for the tax collector. This symbolic date assumes that every dollar earned since January 1 goes to pay federal, state, and local tax obligations.
Florida TaxWatch has researched this issue for more than 15 years, producing numerous reports and offerings recommendations. But the courts’ physical presence requirement has always been a major obstacle. But now that obstacle is gone as a result of the US Supreme Court’s Wayfair decision, and it is time for the Legislature to fix this. Senate Bill 1112 can achieve this long-elusive goal.
The non-collection of sales taxes on sales to Florida customers by remote (out-of-state) sellers has been the most significant tax compliance and collection issue facing Florida and other states for many years. Remote vendors sell products by the internet, telephone, and mail. Historically, the courts have held that when a remote seller makes a sale to a person in a state in which the seller does not have a physical presence, that state cannot require the seller to collect the sales tax due and remit it to the state.
Since the enactment of the Communications Services Tax (CST) Simplification Act in 2001, Florida TaxWatch has released several reports recommending that the Legislature reduce this burdensome and highly regressive tax on consumers. Florida’s CST is very high, relative to both other states and the sales tax on the purchase of other goods. This high rate makes the tax punitive and distortionary, and makes the state less competitive than other states, including the potential for reducing investment in broadband network infrastructure.