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Author Topic: TAX BURDEN for FLORIDA RETIREES  (Read 9581 times)

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Offline DoggyDaddy

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TAX BURDEN for FLORIDA RETIREES
« on: August 15, 2009, 01:50:07 am »
  Many people planning to retire use the presence or absence of a state income tax as a litmus test for a retirement destination.  This is a serious miscalculation since higher sales and property taxes can more than offset the lack of a state income tax. The lack of a state income tax doesn’t necessarily ensure a low total tax burden. Following are the taxes you can expect to pay if you retire in Florida:

State Sales Tax:  6% (food, prescription and non-prescription drugs exempt). There are additional county sales taxes which could make the combined rate as high as 9.5%.
Fuel & Cigarette Tax:
•   Gasoline Tax: 34.5 cents/gallon. (Local taxes for gasoline vary from 5.5 cents to 17 cents, plus there is a 2.07% gasoline pollution tax.)
•   Diesel Fuel Tax: 29.8 cents/gallon. (Includes local county taxes)
•   Cigarette Tax: 33.9 cents/pack of 20 ($1.00 surcharge added on each pack in 2010)

Personal Income Taxes:
•   No state income tax.
•   Retirement Income: Not taxed.  Starting in 2007, individuals, married couples, personal representatives of estates, and businesses are no longer required to file an annual intangible personal property tax return reporting their stocks, bonds, mutual funds, money market funds, shares of business trusts, and unsecured notes.  For details refer to http://dor.myflorida.com/dor/taxes/ippt.html .

Property Taxes 
1.)   All property is taxable at 100% of its just valuation.  In certain counties and cities homeowners 65 and over can receive a homestead exemption from property tax of $25,000 if their household income, as defined by the federal tax code, is at or below $27,539 (single) or $30,917 (couples) per year (2008 figures).  The income limitation is adjusted each year based on the cost of living index.  In many instances the definition of household income excludes Social Security.  Permanent residents may also be entitled to a homestead exemption regardless of age.  Residents 65 and older are entitled to both exemptions ($50,000).  The senior citizen's homestead exemption applies only to tax millage levied by the county or city, and does not apply to millage of school districts or other taxing authorities.  The homestead exemption for all residents applies to all property taxes, not just city and county taxes. Annual increases in the assessment of homestead property are limited to 3% of the prior year's assessed value, or if lower, the percentage change in the Consumer Price Index for the prior, as long as there was no change in ownership. The real property tax deduction has increased.  As a result of changes made to Federal year law, non-itemizers (those who take the standard deduction) may now increase the standard deduction by up to $500 (if single, head of household, married filing separately) and up to $1,000 (if filing jointly) if they took the real property tax deduction on their Federal tax return as an increase to the standard deduction. Call 202-727-1000 for more information. 
2.)   A 2006 law provides a property tax discount on homestead property owned by eligible veterans.  To be eligible, a veteran must have an honorable discharge from military service, be at least 65 years old, be partially disabled with a permanent service connected disability all or a portion of which must be combat-related, and must have been a Florida resident at the time of entering military service.  This discount is in addition to any other exemptions veterans now receive.
3.)   A 2007 law allows local governments to give those age 65 and above - with low incomes - an increased homestead exemption.  Cities and counties have the option of doubling an existing homestead exemption on primary owner-occupied homes from $25,000 to $50,000.  To qualify, taxpayers must have an annual income of $20,000 or less.
4.)   For more details on property taxes refer to http://dor.myflorida.com/dor/property, then find the link for the county property appraiser for the county in question. For more information on Florida property tax exemptions refer to http://dor.myflorida.com/dor/property/exemptions.html .

Inheritance and Estate Taxes - There is no inheritance tax and only a limited estate tax.

To review information for new residents go to http://dor.myflorida.com/dor/taxes/new.html. For general information on Florida taxes, visit the Florida Department of Revenue site http://dor.myflorida.com/dor or call 800-352-3671.

[Source: www.retirementliving.com  Aug 09 ++]

Joe Kleinsmith
All State VFW Post 1716 Cmdr (1998-2000)
Cpt, VFW Post Honor Guard, Retired (1991-2009)
SC-SB County Council Cmdr (1996-1997)
SFC, US Army, Retired (1971-1991)
Full Time RV'er
www.vfwwebcom.org/ca/post1716
http://vfwwebcom.org/ca/Post1716HonorGuard/

Offline DoggyDaddy

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Tax Burden for Florida Residents ►As of Apr 2015
« Reply #1 on: May 02, 2015, 01:23:00 pm »
Tax Burden for Florida Residents ►   As of Apr 2015
Personal Income Taxes
Property Taxes
Inheritance and Estate Taxes

Personal income tax
   Florida residents pay no personal income tax.
   The state's intangible tax on stocks, bonds, and mutual and money market funds has been repealed
for 2007 and subsequent years.

Sales taxes
   Florida levies a 6 percent sales tax.
   Counties impose additional sales surtaxes. The county tax rates are levied on the first $5,000 of
the purchase price for certain transactions.
   For vehicle and mobile home sales, the applicable surtax rate is that of the county where the
vehicle will be registered.
Personal and real property taxes
   Property, or "ad valorem," taxation provides local government funding in Florida. The Property Tax Administration Program, or PTA, administers the assessment and collection of taxes on all real, personal and centrally assessed property. Florida's Property Valuations and Tax Data book provides a comprehensive look at the latest available property tax numbers across the state.
   If you purchase a home in Florida, the tax on it is based on the just or fair market value of the property. Ad valorem taxes are assessed and collected annually by the county property appraiser. Taxpayers with questions about the process should review the Florida Property Taxpayer's Bill of Rights.
   A $50,000 homestead exemption is available to homeowners who meet certain requirements, primarily that the property is the taxpayer's primary residence. Additional exemptions are also available in several other taxpayer situations. Details on the various benefits can be found at the state's homestead exemption Web page.
   Owners of tangible personal property must file an annual return. However, the first $25,000 in assessed value is exempt from taxes.
   Questions about local taxes can be directed to your local county property appraiser.
Inheritance and estate taxes
   There is no inheritance tax.
   Florida's estate tax was tied to the federal estate tax laws. As such, federal law changes meant
Florida's estate tax was eliminated for estates of those who died after Dec. 31, 2004.

Other Florida tax facts
   Flags, both the U.S. and Sunshine State versions, are exempt from state and local sales taxes.
   Taxpayers can obtain tax assistance and information at one of the state's service centers.
   Florida residents can make child support payments online.
[Source: http://www.bankrate.com/finance/taxes/state-taxes-florida.aspx   Apr 2015 ++]
******************************
Joe Kleinsmith
All State VFW Post 1716 Cmdr (1998-2000)
Cpt, VFW Post Honor Guard, Retired (1991-2009)
SC-SB County Council Cmdr (1996-1997)
SFC, US Army, Retired (1971-1991)
Full Time RV'er
www.vfwwebcom.org/ca/post1716
http://vfwwebcom.org/ca/Post1716HonorGuard/