Florida Real Estate Taxes Among the Highest

Fla. -- March 7, 2006 -- While overall state and local taxes in Florida are reasonable compared to the other 49 states, the state's per capita documentary stamp and real estate transfer taxes -- already the nation’s highest -- rose another 28 percent in 2004, according to Florida TaxWatch'sannual report.Florida TaxWatch, a private, non-profit, non-partisan research institute, provides independent research and education on government revenues, expenditures, taxation, public policies and programs. While the tax cost of buying and selling real estate remains high, per capita local property taxes collections compare reasonably well. Florida property owners pay an average of $918.81, and the state ranks No. 21 nationally. At No. 1, New Jersey residents pay an average of $1,870.85 in local property taxes while last-ranked Arkansas residents pay $190.85. From 2000 to 2004, Florida’s total state tax collections grew 24 percent, third largest in the nation; nationally, growth averaged 10 percent. Looking at the state tax burden, Florida ranked No. 35 per capita, which is five points higher than one year earlier. When combined with local taxes, the tax burden on Floridians ranks at No. 32 in the most recent study. Other findings:
• State taxes take 6.0 percent of Floridians' personal income, and state and local taxes combined take out 9.4 percent. This compares to the national average of 6.5 percent and 10.5 percent, respectively.
• Transaction taxes (general and selective sales taxes) account for 77 percent of all Florida's state tax collections, compared to the national average of 49 percent. Sales tax revenue is the third-highest in the nation, though that cost is offset by the lack of a personal income tax.
• Florida is one of seven states without a personal income tax. Of the four largest states, Florida and Texas have no personal income tax.
• Businesses pay nearly half (48 percent) of all state and local taxes in Florida. This is the 13th highest percentage in the nation and higher than the national average of 43 percent. To read the full report from Florida TaxWatch, visit their Web site (http://www.floridataxwatch.org) or download it directly in PDF format at http://www.floridataxwatch.org/resources/pdf/HFCfinal2706.pdf. © 2006 FLORIDA ASSOCIATION OF REALTORS®