January 13, 2015


State & Local Taxes in 2015


Florida Tax Code Features

Progressive Features

• Sales tax base excludes groceries

Regressive Features

• No personal income tax

• Comparatively high reliance on sales taxes

• Fails to provide tax credits to offset impact of sales, excise, and property taxes

• Fails to use combined reporting as part of its corporate income tax

Tax Changes Enacted in 2013 & 2014

• Exempted certain industrial equipment and machinery from the sales tax

• Reduced sales tax rate on electricity

• Exempted several goods from the sales tax base

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, Florida has the 2nd most unfair state and local tax system in the country. States with regressive tax struc­tures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details).

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