Florida Governor Aims to Do Away with Intangible Tax on Investments
TALLAHASSEE, Fla. - Florida Gov. Jeb Bush is pushing forth a proposal that will end the taxes that investors and companies pay on stocks, bonds and mutual funds. Under the state's current law, investors and businesses with $310,000 or more in investments must pay the so-called intangible tax. Married joint filers with $560,000 or more must also pay. It is estimated that the tax will bring in nearly $305 million in revenue for Florida this year. An estimated 98,648 individuals, 162,644 joint filers and 53,550 businesses this year will pay the intangibles tax, according to the state's revenue department. The intangibles tax is based on a Florida resident's investment portfolio on Jan. 1 of each year. The portfolio's value is often calculated based on what their investments were worth on the last day of the previous year. The minimum tax amount paid is $60. Gov. Bush said he wants to phase out the intangibles tax because it penalizes small businesses and middle-class residents who have worked hard to save money. His proposal calls for the tax to be phased out by 2007.