September 20, 2000

Intangible Personal Property Tax

Holland & Knight Newsletter
Eddie Williams III

A. Annual Intangible Personal Property Tax -- §199.032, F.S.

Current Situation:

Section 199.032 imposes an annual tax of 1.5 mills on each dollar of the just valuation of all intangible personal property which has a taxable situs in Florida, except for notes and other obligations for payment of money (other than bonds) that are secured by mortgage, deed or trust, or other lien upon real property situated in the state.

Legislative Change:

House Bills 67 and 187 (HB 67, HB 187), prefiled 8/26/99 and 9/28/99, respectively, amends section 199.032 by lowering the tax rate from 1.5 mills to 1 mill. In addition, the bills lower the intangible tax rate for investment in Florida’s Future Investment funds from 1.35 mills to .85 mills when the average daily balance in the funds exceeds $2 billion and from 1.2 mills to .70 mills when the average daily balance exceeds $5 billion. The bills also exempt the value of account receivables from the intangible personal property tax.

The bills relieve Florida trustees from paying the intangible tax on trust assets, and provide that a Florida resident with a beneficial interest in a trust is responsible for his or her share of the trusts assets and paying the intangible personal property tax on it. Changes to the intangible personal property tax will be effective for tax years beginning after December 31, 2000.

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