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S.A.L.T. Select Developments: Florida

Baker Donelson's S.A.L.T. Select Developments will identify important state and local tax developments from Florida.

Overview

State and local taxes impact almost every taxpayer. S.A.L.T developments in any one jurisdiction can be frequent and sometimes confusing. Where multiple jurisdictions are involved, staying current with state and local tax developments can be overwhelming for any taxpayer.

To assist you with staying current on a periodic basis, Baker Donelson's S.A.L.T. Select Developments will identify one or more recent state and local tax developments from Florida.

November 2019

Rental Sales Tax Rate: On October 30, 2019, the Florida Department of Revenue issued Tax Information Publication No. 19A01-11, noting that effective January 1, 2020, the State sales tax rate on total rent charged for renting, leasing, letting, or granting a license to use real property will decrease from 5.7 percent to 5.5 percent. As also noted in this Publication, the total rent charged includes all consideration due and payable by the tenant to the landlord for the privilege or right to occupy the real property. Further, rental charges paid on or after January 1, 2020 for rental periods prior to January 1, 2020 continue to be subject to the 5.7 percent State sales tax; and that rental payments made prior to January 1, 2020 that entitle the tenant to occupy the real property on or after January 1, 2020 are subject to the 5.5 percent rate, with both situations including any applicable local option discretionary sales surtax. For more details regarding the foregoing, click here.

October 2019

Corporate Income/Franchise Tax: In mid-September 2019, the Florida Department of Revenue issued Tax Information Publication No. 19C01-04, notifying taxpayers that the corporate income tax rate for years beginning January 1, 2019 through December 31, 2021 is reduced from 5.5 percent to 4.458 percent. Taxpayers with a 52 – 53-week taxable year beginning on or about January 1 and ending on or about December 31 have the same tax rates as calendar year taxpayers. Unless subsequently adjusted, the tax rate for taxable years beginning on or after January 1, 2022 will revert to 5.5 percent. For more details as to this tax rate deduction, click here.

September 2019

Corporate Income Tax: On August 26, 2019, the Florida Department of Revenue issued Tax Information Publication No. 19C01-03. Shortly thereafter, the Department updated that Notice as of September 5, 2019. The purpose of the Notice was to remind those taxpayers that file a Florida corporate income/franchise tax return for any taxable year beginning during the 2018 or 2019 calendar year, to report additional information for each taxable year to the Department. For taxpayers timely filing a return by September 3, 2019, the required additional information was initially considered by the Department to be due if submitted by September 3, 2019; however, the update to that Notice states that the September 3 due date for such additional information is extended to October 27, 2019 because of the substantial impact caused by Hurricane Dorian. Further, additional information which is due after October 27, 2019 may now be submitted under this update within ten days of the extended due date or the date the related return is filed, whichever is earlier.

For more details as to the required additional information and the updated due dates because of Hurricane Dorian, click here.

August 2019

Corporate Income Tax: On July 31, 2019, the Florida Department of Revenue issued two Tax Information Publications (TIP) dealing with the impact of the Federal Tax Cuts and Jobs Act of 2017 (TCJA) on the Florida corporate income tax. TIP No. 19C01-02 advises that the Florida Income Tax Code now adopts the Internal Revenue Code retroactively to January 1, 2019, and also addresses certain adjustments such as bonus depreciation and foreign source income provisions which are required in computing Florida adjusted federal income. TIP No. 19C01-01 reminds that all taxpayers filing a Florida corporate income tax return are required to submit certain information from their federal income tax return on the Department's website concerning the TCJA impacts on their Florida corporate income tax. The Department webpage is to be available on or before September 3, 2019. That TIP also briefly explains how certain sections within the Internal Revenue Code affected by the TCJA flow into the Florida corporate income/franchise tax return. The referenced sections include net operating losses, foreign-source income adjustments, and the limitation on net interest deductions. Refer to TIP Nos. 19C01-01 and 19C01-02 for more details.

July 2019

Interest Rate: For the period from July 1, 2019 through December 31, 2019, the Florida Department of Revenue earlier announced in Tax Information Publication No. 19ADM-01 that the floating interest rate remains at nine percent based on the adjusted prime rate charged by banks. The floating rate of interest applies to deficiencies (underpayments), late payments and overpayments.

Refer to this Tax Information Publication for more details.

June 2019

Fuel Tax: Effective June 4, 2019, the Florida Department of Revenue promulgated an emergency rule addressing the exemption from tax on fuel purchases in Florida between October 10, 2018 and June 30, 2019 where such fuel is used in the State for agricultural shipment or hurricane debris removal. The emergency rule sets forth various definitions and other important information pertaining to the exemption. A copy of the emergency rule can be found here.

For more information about state and local tax developments in Florida, please contact:

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