Taxation

AIF SUPPORTS reducing the state sales tax on commercial electricity and gas consumption. Reducing this expense is a good way to make Florida more attractive for businesses to locate in the state.

AIF SUPPORTS Governor Scott’s proposal to permanently eliminate corporate income tax on manufacturing and retail businesses. The elimination of this tax will reduce the cost for businesses in Florida by about $770 million annually, attract more businesses to the state, and diversify Florida’s economy by helping more businesses succeed. In addition, this proposal provides an excellent incentive for businesses to expand in Florida and for companies looking to relocate here. AIF continues to OPPOSE any structural changes to the corporate income tax such as combined reporting or the “throwback” rule or any other “loophole” issues.

AIF SUPPORTS an incremental reduction of tax imposed on rental or license fees charged for use of commercial real property and/or the elimination of the double taxation that occurs when a tenant pays its landlord’s property taxes. Florida is the only state that charges tax on the lease of commercial property; and while this is a major part of the state’s tax revenues, it needs to be gradually reduced and eventually eliminated to make Florida more attractive to business.

AIF SUPPORTS a permanent 10% property tax cap on second homes and commercial property. In 2008, Florida voters approved Amendment 1 which, among other things, created a 10 % cap on the annual increase of property taxes for all non-homestead properties. However, this amendment included a sunset provision that goes into effect on January 1, 2019. AIF SUPPORTS a constitutional amendment to this initiative back in front of voters for renewal during the 2018 General Election.

AIF SUPPORTS Sales Tax Holidays for school supplies, hurricane or disaster preparedness supplies, and veterans. This tax holiday is a win-win for customers and the state as sales tend to increase more than they would without the tax holiday.

AIF SUPPORTS the elimination of the $9 million annual cap on research and development credits applied against state income tax. This credit would encourage an increase in research and development work in Florida, as well as incentivize research and development enterprises to move to the state.

AIF SUPPORTS continuing reductions in the state portion of the communications service tax which applies to business and wireless phone service, cable, and satellite television services. The tax rate on communications services is higher than on general sales and makes the communications services expense a significant deterrent for businesses to locate here. The reduction of the state portion is good for Florida businesses and makes Florida more attractive to companies looking to relocate.

AIF OPPOSES any legislation, administrative rule or proposed constitutional amendment that would attempt to create a new tax on services. A tax on any services would put Florida businesses at a competitive disadvantage and would discourage new businesses from coming to the state.

AIF SUPPORTS the Entertainment Industry Financial Incentive Program, including sales tax exemptions for motion picture, sound, and video equipment. This economic development program and tax exemption allows Florida to compete with other states and international locations for economic development generated by attracting feature films, high impact television and digital media productions.

AIF SUPPORTS the Urban Jobs Tax Credit Program. This program encourages economic activity and job creation in areas designated as high crime areas.