For four years in a row, Florida has maintained one of the top-five best business tax climates in the country, according to the Tax Foundation.
Behind the Sunshine State’s number-four ranking is a bevy of tax factors, incentives and other benefits that make doing business here an attractive opportunity for expanding companies.
Now, in the midst of tax season, we are exploring the factors that form Florida’s one-of-a-kind tax climate. Take a look below to learn more.
Behind the business tax ranking…
Florida has consistently earned an impressive business tax ranking—but what’s behind that number-four spot? As it turns out, several unique factors. According to the Tax Foundation, Florida is also number-six for corporate taxes, number-one for income taxes (because it has no such tax—a distinction Florida shares with three other states), number-22 for sales tax, 11 for property tax and two for unemployment insurance tax.
On corporate tax specifically, Florida jumped 13 spots from last year’s number-19. What’s behind this impressive improvement? The Tax Foundation considers factors such as top tax rate, brackets and gross receipts to determine a state’s economic competitiveness and to what degree taxes can have an impact on the economic activity of a business.
Refunds and credits
There are a number of tax-based incentives for businesses operating in the Sunshine State. The Qualified Targeted Industry Tax Refund, or QTI, for example, exists to serve companies that create high-paying jobs in targeted, high value-added industries. There are also the Qualified Defense and Space Contractor Tax Refund and Capital Investment Tax Credit, which both serve to spur economic development in various industries.
What you won’t find
Of course, Florida has a lot to offer when it comes to taxes. But what it lacks is just as important. In the Sunshine State, you will not find corporate income tax on limited partnerships, corporate franchise tax on capital stock, sales and use tax on goods made in Florida for export, tax on business inventories, and much more. The state’s moderate tax climate offers a healthy environment in which businesses can truly thrive.
Are you interested in learning more about Florida’s business-friendly tax climate? Get in touch with Team Volusia today. We are here to help, and can connect you with facts and resources that further inform your decision to expand here.