As the tax reform debate begins to heat up, businesses and investors are beginning to pay closer attention to the House GOP Tax Reform Blueprint, a tax plan released last June by Speaker Paul Ryan and House Ways and...
- The Tax Policy Blog
- Florida Senate Unanimously Votes to Put Personal Property...
Florida Senate Unanimously Votes to Put Personal Property Tax Cut on Ballot
Last Friday, the Florida Senate unanimously approved HJR 1003, a proposal to raise the state's personal property tax exemption from $25,000 to $50,000. The measure, which is a constitutional amendment, will now be given to Florida taxpayers, who will need to approve the measure by a 60 percent margin in order for the tax cut to take effect.
As I argued in my testimony to the Finance and Tax Committee of the Florida House of Representatives, the tangible personal property tax is an especially destructive way of collecting tax revenue, as it distorts business decisions relating to the accumulation of capital.
Each year, all business property (machinery, office contents, etc.) is subject to an ad valorem tax based on its depreciated value. Not only are there complexity concerns with properly accounting and depreciating these business inputs (look at the form here), the tax also places a disincentive on the accumulation of new capital—it punishes businesses that employ new and innovative technologies in their production methods.
Raising the exemption from $25,000 to $50,000 would mean that nearly half of current TPP tax filers will no longer be required to file this cumbersome and distortionary tax.
More on Florida's tangible personal property tax here.
More on Florida here.
Follow Scott Drenkard on Twitter @ScottDrenkard.
Get Email Updates from the Tax Foundation
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.
Related State Articles
- Lunch Links: Mnuchin as Treasury Secretary Favors Tax Reform; Trump-Pence Negotiate to Keep Carrier Jobs in Indiana; States Planning Projects for Infrastructure Funding in New Administration
- Lunch Links: Nebraska Tax Reform Options; FAQ on Oregon Measure 97; Olympics Tax Break
- Lunch Links: Trump Takes Hits from Clinton (Release Tax Returns) and Forbes (Troublesome Pass-Through Rate Reduction); NCSL Calls on Congress for Marijuana Reforms
- 1 of 33
- next ›