This tax season it’s better in Florida (than NY, for sure)

Submitted by Suanne Z. Thamm

Reporter – News Analyst

Dave Barry on the dollar (source:  npr.org)
Dave Barry on the dollar
(source: npr.org)

It’s income tax time again, Americans:  time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta.  ~Dave Barry

 

As we approach the April 15 tax-filing deadline, here are a couple of statistics that might make you hurt less when you write that check to the U.S. Treasury.  According to a study that appeared on the Wallet Hub website, Florida has been ranked the 4th best state to be a taxpayer.  We pay roughly $3,648 annually in state and local taxes, 48% lower than the national average.  Only three states can top that:  Wyoming and Alaska, at 66% below national average, trailed by Nevada at 52% below national average.  Contrast that with many of the states that our newcomers fled, like New York (39% above the national average), Illinois (29% above), and New Jersey (27% above). The average annual tax bill for New Yorkers is $9,718.  For complete results, visit http://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416/#complete-rankings.

The Tax Foundation has also released its 2014 edition of the State Business Tax Climate Index.  Florida ranks 5th in this index behind Wyoming, South Dakota, Alaska and Nevada.  According to Tax Foundation, “The absence of a major tax is a dominant factor in vaulting many of these ten states to the top of the rankings.  Property taxes and unemployment insurance taxes are levied in every state; … Florida has no individual income tax.”  New York and New Jersey are the bottom ranked states in this index.

Florida’s overall rank of 5th has several other key components.  The state rankings for other Florida taxes:

  • Corporate tax rank  – 13
  • Individual income tax rank – 1
  • Sales tax rank – 18
  • Unemployment insurance tax rank – 6
  • Property tax rank  –  16

For complete rankings and other useful information, visit http://taxfoundation.org/article/2014-state-business-tax-climate-index

March 20, 2014 5:00 p.m.

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Richard Cain
Richard Cain(@richardcain)
10 years ago

An interesting article but one that I worry will be misused by some (who might suggest we can certainly increase various tax rates) and not fully understood by others. Indeed Florida overall is attractive for its often lower taxes … which is why many have moved here. But specifically I’d like to note that the property tax ranking shown here (16th best or lowest) is extremely misleading. I lived in Virginia in a much more expensive home and my property taxes were considerably lower than here in Fernandina Beach. Yet, Virginia is shown as 26th. How is this possible you might ask. They are showing an overall State average.
First, not every county/city in Florida has the same tax rate and there is a huge range of rates. Fernandina Beach has one of the worse (highest). Even within the county (I own properties in both the City and outside the City), the millage rate for the City is 32% higher … not a small difference. Not very attractive for a new business.
Second, even within the City the property tax rate is nowhere close to being equitable or uniform. Just for an example and I hate to get personal … the submitter of the article has a home worth 7.7% more than my home … according to the property appraiser. Yet the tax basis of my house is 193% higher. 193%!!!! This after the Save My Homestead exemption granted by the State constitution. Residents who have been here the longest pay considerably less taxes. So, how is this survey ranking Florida’s property taxes versus other states? Perhaps overall and in general it is #16. For you it might actually be #5. For me it might be more like #35 . Businesses don’t get that exemption so from the standpoint of property taxes it isn’t so attractive as one might think.
I would hate to think a local resident might look at this survey and conclude that it is perfectly reasonable to raise property tax rates since our taxes are already so “reasonable” and “low”. Perhaps for some they are. For many others they are extremely high. So for the lucky … please quietly enjoy show your benefit and show the rest of us a little consideration when thinking about raising tax rates. Just a thought.

Tom Washburn
Tom Washburn (@guest_18677)
10 years ago

A corollary of our high income tax rank in Florida is that the governor and legislature have elected not to accept federal funds to expand Medicaid in this state. So…the individual tax payer may be better off in Florida; to the detriment of over one million adults citizens in our fair state. This state even eliminated the state tax on intangible property a few years ago, again neglecting needs of our less well-off citizens.

In this community, we are blessed by having non-profit agencies, with their wonderful volunteers, which attempt to fill gaps in social services that would be better provided by the state. Those of us with decent incomes should, in my opinion, take on the commitment of paying more taxes so as to make more level the economic playing field of all our citizens.