News By Industry
News from Tallahassee for 11/20/14
Report finds Florida has fifth best business tax climate but TaxWatch says there's a need for reforms posted on 11/13/14
by Rochelle Koff | Miami Herald
A new national report ranks Florida's business tax climate as fifth best in the nation, but it doesn't reflect the whole picture of the state's tax system, according to Florida TaxWatch.
"In a couple areas, it overstates the quality of Florida's tax structure," Kurt Wenner, vice president of Tax Research for Florida TaxWatch, said. "There's always room for improvement."
Florida's ranking was published in the 2015 State Business Tax Climate Index, an annual report that analyzes how tax structures compare across states.
Florida's high ranking is largely due to its not having a personal income tax, the most heavily weighted tax in the Index, according to TaxWatch, a nonprofit tax research group supported by many of the state's largest businesses.
The 10 top states in this year's rating are Wyoming, South Dakota, Nevada, Alaska, Florida, Montana, New Hampshire, Indiana, Utah and Texas.
Gov. Rick Scott releases 2013 tax returns; questions remain posted on 10/17/14
by Mary Ellen Klas | Times/Herald Tallahassee Bureau
TALLAHASSEE— Gov. Rick Scott on Thursday released his 2013 tax returns “in the interest of full transparency” with just weeks to go before the election.
Scott, a multimillionaire who files his annual return jointly with his wife Ann, reported that he and his wife had an adjusted gross income of $8.2 million and paid $2 million in taxes. They filed their returns Wednesday, the final day allowed by the IRS for taxpayers who sought the six-month extension.
The release of Scott’s tax return, however, left unresolved many questions that have emerged about the accuracy and completeness of his financial disclosures since he filed his 2013 state financial disclosure reports as required to run for re-election.
The governor reported a net worth of $132.7 million, and put many of his assets in a blind trust managed by his longtime investment advisor, Alan Bazaar. The goal of the blind trust, the governor said, was to shield him from any conflict of interest when the companies in which he holds stock do business with the state.
Excluded from his reported assets, however, are investments held by his wife, or held by his family’s Scott Family Partnership Trust. The Herald/Times reported last week that documents filed with the federal Securities and Exchange Commission show that Scott has a history of dividing his assets into those and other multiple trust accounts and he remains the “beneficial owner” on some of the stock.
According to the reports filed with the state, Scott may only be disclosing the assets held in his newly formed personal blind trust, not the assets for which he is the beneficiary, raising questions about the completeness of his reports.
Report: Florida has one of highest cellphone tax rates in the U.S. posted on 10/9/14
by Scott Mackey, Joseph Henchman | The Tax Foundation
Wireless consumers continue to face excessive tax burdens when compared to the tax burden on other goods and services purchased in the competitive marketplace. The average rates of taxes and fees on wireless telephone services are more than two times higher than the average sales tax rates that apply to most other taxable goods and services. Consumers in seven states—Washington, Nebraska, New York, Florida, Illinois, Rhode Island, and Missouri—pay total taxes and fees in excess of 20 percent of their bills...
• Americans pay an average of 17.05 percent in combined federal, state, and local tax and fees on wireless service. This is comprised of a 5.82 percent federal rate and an average 11.23 percent state-local tax rate.
• The five states with the highest state-local rates are: Washington State (18.6 percent), Nebraska (18.48 percent), New York (17.74 percent), Florida (16.55 percent), and Illinois (15.81 percent).
• The five states with the lowest state-local rates are: Oregon (1.76 percent), Nevada (1.86 percent), Idaho (2.62 percent), Montana (6.00 percent), and West Virginia (6.15 percent).
• Four cities—Chicago, Baltimore, Omaha, and New York City—have effective tax rates in excess of 25 percent of the customer bill.
• The average rates of taxes and fees on wireless telephone services are more than two times higher than the average sales tax rates that apply to most other taxable goods and services.
• Excessive taxes on wireless consumers disproportionately impacts poorer families.
All Aboard Florida move claims to take heat off taxpayers posted on 10/7/14
by Dave Berman | florida today
All Aboard Florida has modified its financing plan for its proposed passenger rail service, so that the public would not face any financial risk and the project could be completed quicker, the company's president said Monday.
Under the $1.75 billion financing plan, "no public entity or taxpayer bears risk," All Aboard Florida President and Chief Development Officer Mike Reininger said.
All Aboard Florida plans to start rail service from Miami to Orlando, with interim stops in Fort Lauderdale and West Palm Beach. Under the current plan, the trains would pass through south and central Brevard County 16 times a day in each direction, but would not stop within the county.
Members of the public have raised a number of objections to the project. One of them is the possibility of federal loan guarantees for track and station development putting public money at risk.
Now, All Aboard Florida instead will use what's known as private activity bonds to finance the project. Those bonds — which are designed to encourage private companies to invest in public infrastructure — would be marketed and sold to private investors. Reininger said All Aboard Florida is "highly confident" of finding the needed investors.
Construction of the first phase of the project, from Miami to West Palm Beach, is underway, with service expected to begin by the end of 2016. By using this financing mechanism, Reininger said, All Aboard Florida hopes to begin construction of Phase 2, from West Palm Beach to Orlando, in early 2015 and have service underway by mid-2017.
Gray Swoope: Speeding Up Incentives Could Help Land Apple-like Firm posted on 10/1/14
by JIM Turner | NEWS SERVICE OF FLORIDA
Florida may be trying to entice Apple Inc. to build a manufacturing plant in the state.
Or a top economic-development leader could just be using the prospect of landing the multinational electronics and technology company to get state lawmakers to allow more leeway on state incentives packages through a program known as the "Quick Action Closing Fund."
Enterprise Florida President and Chief Executive Officer Gray Swoope told the agency's board members Tuesday that Apple is the kind of manufacturer desired by Florida. However, he said, state laws might hinder such economic-development efforts because of the length of time needed to get approval for incentives as firms try to open facilities quickly.
Under the Quick Action Closing Fund, a joint House and Senate panel known as the Legislative Budget Commission is required to approve incentives packages over a $5 million threshold. The commission meets periodically throughout the year.
Follow us on Twitter