Tag Archive for: governor rick scott

Reduction In Business Rent Tax Part Of Gov. Scott’s 2017 Tax Cut Plan

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Florida Gov. Rick Scott told Realtors® in Orlando that he again included an issue close to members’ hearts – a reduction in the state’s business rent tax – as part of his proposed 2017 budget that he’ll send to the Florida Legislature for consideration.

Scott announced his tax cuts statewide in a two-day tour, with one of the five stops at Florida Realtors® Mid-Winter Meetings going on last week in Orlando. Scott made the announcement during the Florida Real Estate Trends 2017 conference.

“We’re honored that Gov. Rick Scott made time to update Florida’s Realtors on his proposed budget,” says 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “Realtors across the state stand ready to work with the governor to advocate for a cut in Florida’s onerous business rent tax.

“Florida is the only state that has a tax on commercial leases. It’s unfair to our small businesses, and it makes it more difficult to attract new business and industry to the Sunshine State. It also causes an additional burden if an existing Florida business hopes to invest more or expand, which in turn creates new opportunities for families in their communities.”

Gov. Scott called his trip around the state his “Fighting for Florida’s Future” Tax Cut Tour. Overall, he proposed $618 million in tax cuts to help Florida families and small businesses. Of those tax cuts, he earmarked $454 million – 73 percent – to reduce the business rent tax.

If enacted, the proposal would reduce a business’ rent tax by 25 percent in 2018.

“We are fighting to secure a bright future for Florida, and cutting taxes will help make our state the top location for job creators to invest in for generations to come,” Scott said. “I made a promise to keep fighting for jobs until my very last day as governor, and I ask the (Florida) Legislature to join me in fighting for the future of our students, our small businesses, our veterans and our families by cutting $618 million in taxes this year.”

Scott will send his final budget proposal to the Florida Legislature, which will consider his recommendations during the session that convenes on March 7, 2017.

In addition to the business lease tax deduction, Scott proposed the following tax cuts:

  • Four sales tax holidays that would save Floridians an estimated $98 million this year: $72 million during a 10-day back-to-school sales tax holiday; $7 million from a nine-day disaster preparedness sales tax holiday; $18.4 million from a three-day veteran’s sales tax holiday; and $500,000 from a one-day camping and fishing sales tax holiday.
  • A sales tax holiday on textbooks for the 2017-2018 academic year that would provide students an estimated $48 million savings.
  • An increase in the corporate tax exemption from $50,000 to $75,000. If enacted, Scott estimates that 22.5 percent of businesses that currently pay state income taxes won’t have to do so. The exemption was increased from $5,000 to $25,000 in 2011 and $50,000 in 2012.

 

Source:  Florida Realtors

Businesses Seek State Cuts In Commercial Lease Taxes

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Gov. Rick Scott met with business leaders in Broward and Palm Beach counties on Tuesday to get their input on what tax cuts he should propose to the legislature since the state will have a budget surplus in 2014.

Their biggest concerns included rising personal property taxes and insurance costs, and taxes that affect businesses moving to the state or startups trying to grow.

The stops were part of Scott’s tax-cut tour across the state. Scott has pledged to cut taxes and fees for the state by $500 million in the 2014-2015 budget, the same year he would run for re-election.

“How do we give the money back to you, the taxpayers? I’m putting it back in your hands,” Scott told the group at the Palm Beach County Convention Center Tuesday morning.

Kelly Smallridge, president of the Business Development Board, the economic development agency for Palm Beach County, said when recruiting businesses to the area, Florida’s tax on commercial leases is an issue in being competitive with other states.

“We’re one of the only states that has a tax on commercial leases,” she said.

Real estate broker Robert Goldstein suggested to the governor the commercial leasing tax be reduced by 1 percent each year until it is phased out. “We’re at a competitive disadvantage,” he said. The current tax is 6 percent.

He said the impact on economic and job growth from eliminating the tax would far outweigh the tax revenues.

Several small business owners, including one who provided a sample of his company’s popcorn to the governor, attended the meeting at Broward College in Fort Lauderdale.

Rosana Santos Calambichis, owner of Davie catering company Big Chef, said she would like to see a reduction in the tax on fuel — her business has seven trucks — as well as the state tax included in insurance coverage and the commercial lease tax. “It adds up quickly,” she said.

Broward College radiology student Shelda Simon, 19, got her 15 seconds of fame — and a photo with the governor — after asking him why so many young graduates are unemployed.

“There are plenty of jobs around the state. But you have to get the right degree,” Scott told her.

Life science business owner Ken Kirby said the governor should consider proposing a new life science fund for startup businesses in the sector now that it has invested millions of dollars in Scripps Florida, in Jupiter, and other institutes.

“It seems a shame to waste the momentum,” said Kirby, whose company TransDermal Delivery Solutions Corp., which has developed alternative systems to deliver drugs to patients, opened a new headquarters in Palm Beach Gardens last year.

Florida expects a budget surplus by the time lawmakers draft the 2014-15 budget. A new forecast released Sept. 4 shows a surplus of $845 million in fiscal 2014, even after meeting current enrollment needs for schools and health care programs such as Medicaid and setting aside $1 billion in reserves, according to a draft report released Sept. 4 by legislative appropriation committees and researchers.

The surplus is mostly due to a recovering economy, said Amy Baker, state chief economist. “People here have more money to spend and more tourists are spending money here,” she said.

While general revenues are increasing due to pulling in more sales tax, the budget constraints have shrunk as some state programs were eliminated or reduced during the recession.

But forecasters warn that more than half of the surplus — $449 million — is a one-time windfall.

In recent weeks, Scott has promised to spend an additional $70 million on environmental projects dealing with the Everglades and Lake Okeechobee in the coming year, which could come out of the surplus.

Another target could be auto tag fees that were raised in 2009 when Gov. Charlie Crist was in office. Crist, now a Democrat, is expected to challenge Scott in the governor’s race in 2014.

Gov. Scott made a pledge in 2010 to eliminate the corporate income tax, which generates about $2.1 billion a year. But Florida lawmakers have steered away from the massive tax break, which would benefit mostly larger companies.

The “It’s Your Money” tour continues over the next three days in Jacksonville, Tampa and Orlando.

 

Source:  Sun-Sentinel