9 Actions Florida Should Take to Help Taxpayers Impacted by Hurricane Ian

1.     Postpone tax notices and waive penalties or interest for late tax filings in affected areas

2.     Extend the date for residents to take advantage of the tax discounts they would normally receive for paying property taxes and special assessments in November and postpone or defer the deadline for property tax installment payments

3.     Protect individual and business taxpayers from the risks for notices that they will likely not receive because their home or business addresses is not accessible anymore

4.     Issue no new audits in severely impacted areas, extend the statute of limitations and postpone existing audits that haven’t reached the assessment stage because these can’t be responded to while entire communities are still recovering

5.     Create procedures for fairly estimating taxes which can’t be calculated because records have been destroyed by the storm, moving away from the current method which significantly overestimates activity if no records are available

6.     Initiate procedures to offer payment plan assistance for late taxes, rather than resorting to the standard collection methods, like liens, levies, or bank freezes

7.     Retroactively apply the recently passed law that provides property tax refunds for residential property rendered uninhabitable as a result of a catastrophic event

8.     Provide tangible personal property relief and allow n on-residential properties rendered uninhabitable to receive property tax refunds

9.     Get Congress to pass a Disaster Tax Relief Act that includes provisions from past packages, including elements such as an Employee Retention Credit, an enhanced casualty loss deduction, and other relief provisions

Download the Recommendations

Other Resources

Florida Disaster.biz
FEMA
Florida Department of Financial Services
Florida SBDC
Disaster Contractors Network
Florida Disaster Fund

Florida TaxWatch Statement on Hurricane Ian Recovery

Community Involvement

/ Categories: Blog

People are Fleeing High-Tax States for Florida and Bringing High Incomes with Them

Florida has a history of trying to woo people and businesses to move to the Sunshine State, and it appears to be working.  In addition to its many other selling points, Florida has also had the reputation of being a low-tax state. Recent federal tax law changes have made our state even more attractive from a tax standpoint to many Americans.  

The study released this month by Lending Tree states, “Florida tops the list for the most successful state at drawing in new residents and reaping the financial benefits — and it is not even close.”  IRS data shows that 20 states enjoyed a net migration in adjusted gross income in 2016 and Florida led the way with a net gain of $17.7 billion.  This is almost as much as the other 19 gainers combined--$19.4 million.  The number two state—South Carolina—saw AGI grow by $2.3 billion.  Texas, Washington and North Carolina round out the top five net gainers.

Florida is still #1 when its large economy is considered.  Florida’s total AGI grew by 3 percent, the largest percentage growth in the nation.   Which states are paying for Florida’s growth?  The five states with the largest net decrease in AGI are New York, Illinois, New Jersey, Pennsylvania and Connecticut.

The people moving to Florida tend to be older and wealthier.  People over 55 made up 72 percent of Florida’s growth and those making more than $100,000 make up 85 percent.  Older folks are also fueling the growth in the other big-gainer southern states—the Carolinas.  Conversely, most of the growth in Texas and Washington are from younger people (under 46).

And it is not just individuals that are fleeing high-tax states.  Hedge funds, private equity firms and wealth management offices are re-locating to Florida.  The head of Palm Beach County’s Business Development Board told FOX Business that more than 70 financial services companies have moved into Palm Beach County within the last three years and another 15 are considering such a move. Miami is also campaigning to convince businesses and individuals to move to South Florida.

The new $10,000 cap on the state and local taxes (SALT) deduction that was enacted as part of the federal Tax Cuts and Jobs Act of 2017 is only expected to heighten this migration. This hurts taxpayers in high state income and property tax states.  Florida, of course, has no income tax and its property tax laws favor homeowners.

New York’s Gov. Cuomo partially blames the state’s $2.3 billion budget deficit on wealthier New Yorkers leaving the state in the wake in of the SALT deduction cap.

According to FOX Business, data provided by the Tax, Trusts & Estates Department of Cole Schotz, someone earning $650,000 in ordinary income could save $69,719 per year by moving from New York to Florida.  Moving from New Jersey would save $58,300.

 

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