True to its vigorously marketed reputation as a low-tax state, Florida imposes one of the nation’s lowest tax burdens on its residents, according to a new study by Florida TaxWatch.
Still, a family of four is on the hook for more than $20,000 a year in state and local taxes, the group finds.
Florida TaxWatch this week released its national ranking of tax bills. It finds Florida ranks 40th, collecting $5,733 per state resident in fiscal 2016, well below the national average of $7,188.
Because Florida has no state income tax, it finds revenue in other ways. Florida has some of the highest taxes on beer, wine, liquor and real estate transactions, Florida TaxWatch finds.
Florida ranks 24th nationally in property tax collections per capita, at $1,278 per person. New Jersey ranked No. 1, at $3,164. Arkansas was 50th, collecting $337 per person.
One intriguing caveat: Most taxes collected in Florida aren’t paid by individuals but by businesses. Florida collects a corporate income tax, and businesses pay more than half of all revenues collected by state and local governments.
Business boosters long have boasted about Florida’s low tax burden, using it to recruit businesses and workers from other states. Jerry Parrish, chief executive of the Florida Chamber Foundation, says low taxes mean workers keep more of their earnings than they would in high-tax states like California and New York.
“You can have a better quality of life on less money with no state income tax,” Parrish says.
© 2019 The Palm Beach Post (West Palm Beach, Fla.), Jeff Ostrowski. Distributed by Tribune Content Agency, LLC.