Tax Advantages Make Florida A Top Choice for Businesses

• No personal state income tax
• No state ad Valorem (property) tax
• No inventory or goods-in-transit tax
• No franchise tax on capital stock
• No corporate income tax on estates, partnerships, individuals or private trusts.
• No sales tax on "boiler fuels" used in Florida for industrial processes.
• No sales and use tax on goods manufactured or produced in the state for export

The State of Florida also offers business incentives to qualified start-up or expanding businesses.  The EDC serves as the conduit for these businesses to apply to the state for the business retention, expansion and new location incentives.

If you are starting a business in Okaloosa County, below is a brief list of some of the most common state and federal taxes.

• Florida Corporate Income Tax.
  Only C-Corporations are subject to the 5.5% tax. First $5,000 of taxable income apportioned to Florida is exempt. The C-Corporation pays the tax on form F-1120 or short form F-112-A if the business shows net income of $45,000 or less and conducts all business in Florida. An S-Corporation in Florida files an F-1120 corporate income tax return for the first year it does business in the sate, but unless there is federal taxable income, it only has to answer the form's information questions.
   
• Florida Sales and Use Tax.
  Florida businesses must collect sales tax for many products and services. Check with the Okaloosa County tax office to determine what's taxable. If your business will involve taxable transactions, you must register as a sales and use tax dealer (form DR-1). Most businesses pay monthly, with returns and payments due on the first day of the month following the date of sale.
   
• Florida Intangible Personal Property Tax-Accounts Receivable.
  The tax on one third of a corporation's account receivable shall be exempt from the intangible personal property tax. It is the legislature's intent, subject to future legislative act, to exempt the remaining two thirds of a corporation's accounts receivable.
   
• Florida Intangible Personal Property Tax-Stock Options.
  Stock options granted to employees by an employer pursuant to an incentive plan are exempt from the intangible personal property tax, provided the stock options are not transferable.
   
• Florida Discretionary Surtax.
  Many Florida counties impose an additional .5% to1.5% local option tax on transactions that are subject to the state sales and use tax. Okaloosa County does not have a local option sales tax in effect, at this time.

* For additional information contact the EDC at info@florida-edc.org or 850-362-4647.