Tag Archives: Florida sales tax

Florida Department of Revenue Offers Sales Tax and Property Tax Relief

The Florida Department of Revenue has granted relief to certain adversely affected taxpayers suffering from business interruptions caused by COVID-19.  This relief extends the deadlines for reporting and remitting property tax and sales and use tax for affected taxpayers.

Florida property tax assessments for the 2019 tax year are generally due on March 31, 2020.  The Florida Department of Revenue has applied an extension to all 67 counties in Florida, pushing the due date on property taxes back to April 15, 2020 for all taxpayers, regardless of whether the extent a taxpayer’s ability to pay has been affected by COVID-19.

The Florida Department of Revenue has also provided an extension for businesses to remit sales and use taxes to the state and file related tax returns, but this extension only applies to certain Adversely Affected Taxpayers rather than any taxpayer collecting sales and use tax.  To be treated as an Adversely Affected Taxpayer and qualify for the sales and use tax deadline extensions, a taxpayer’s business must experience one of the following:

  • The business closed in compliance with a state or local government order and had no taxable sales transactions as a result; or
  • The business experienced sales tax collections in March 2020 that are less than 75% of March 2019 sales tax collections; or
  • The business was established after March 2019; or
  • The business is registered with the Department to file quarterly.

Florida’s sales and use tax is the state’s largest source of revenue, producing over $26 billion annually for the state.  Sales and use tax, along with other related tax returns and payments, are generally due on the first day of the month following the month of collection and are considered late if filed after the 20th day of the month.  The Florida Department of Revenue has extended this due date to April 30, 2020, for sales tax collected in March for Adversely Affected Taxpayers.  Taxpayers who do not fall within the definition of Adversely Affected Taxpayer must still follow the normal due date of April 20, 2020.

For businesses unable to meet their March 20 deadline for collections of February sales and use tax, the Florida Department of Revenue has waived penalty and interest on late payments if the taxes are reported and paid by March 31, 2020.

The Florida Department of Revenue’s emergency order extending the property tax filing and payment deadline is available on the Department’s website.

The Florida Department of Revenue’s emergency order extending the sales and use tax filing and remittance deadline is also available on the Department’s website.

Jamie E. Koepsel
(941) 552-2562

How Do Florida’s Residential Property Tax Rates Rank Among the States?

How do Florida’s residential property tax rates rank among the states?  A recent study by the non-profit Tax Foundation ranks the effective owner-occupied residential property tax rates of all fifty states.  To provide a meaningful comparison, the study takes into account percentage value increase limitations (like Florida’s “Save Our Homes” cap) and exemptions (like Florida’s “Homestead Exemption”).

The study ranked Florida twenty-five out of the fifty states, with a 1.06% average effective tax rate after taking into account exemptions and limitations. Hawaii’s 0.28% mean effective tax rate ranked lowest.  New Jersey’s 2.38% mean effective tax rate was the highest, followed by Illinois, New Hampshire, and Connecticut, respectively.

Three of the four states with the highest property tax rates also impose significant state income taxes.   While we wish Florida ranked at the bottom of the property tax rate list with Hawaii, we are grateful Florida does not impose a personal income tax in addition to its property tax.

You can see the Tax Foundation study’s full results in a map format by clicking this link:

E. John Wagner, II