Small business and targeted tax breaks moving in Florida House ...

A House committee Wednesday approved a series of tax breaks that would save millions of dollars for small businesses ? while also helping specific taxpayers ranging from agricultural packing houses to real-estate salespeople, reports Jim Saunders of the News Service of Florida.

Gov. Rick Scott proposed some of the tax breaks, such as expanding an exemption on corporate-income taxes for small businesses. The House Finance and Tax Committee unanimously approved a bill (PCB FTC 12-07) that included the expanded corporate-income tax exemption and nine other tax changes.

?This bill is about improving the economic environment in the state of Florida,? Chairman Steve Precourt, R-Orlando, said.

The committee, however, split on other tax measures, including a proposed constitutional amendment that would create what sponsor Jason Brodeur, R-Sanford, described as a ?super homestead exemption.?

The committee approved the proposal 15-8, but Brodeur acknowledged he would need to make changes after facing criticism from lawmakers and lobbyists for cities and counties. The proposal, which would ultimately require voter approval, would eliminate $565 million in local property taxes during the 2013-14 fiscal year.

?Just the impact is too great for us to handle,? said Davin Suggs, a lobbyist for the Florida Association of Counties.

That proposal (HJR 1289) would provide additional homestead exemptions on portions of home values above $75,000. The portion of a home?s value between $75,000 and $200,000 would receive a 30 percent tax exemption, and the portion between $200,000 and $400,000 would receive a 15 percent exemption.

Currently, homeowners receive exemptions on the first $25,000 of their home values and on the portions between $50,000 and $75,000.

In all, the Finance and Tax Committee approved a dozen tax-related bills Wednesday, though not all of the measures would provide tax cuts. The broadest bill ? including such things as the expanded corporate income-tax exemption ? would lead to $55 million in tax savings during the 2012-13 fiscal year.

During his 2010 gubernatorial campaign, Scott made a priority of cutting corporate income taxes. Lawmakers last year approved an exemption on the first $25,000 of income, a move aimed at small businesses.

This year?s proposal would increase that exemption to $50,000, providing about $9.9 million in tax savings during the 2012-13 fiscal year and larger amounts in later years.

Lawmakers also targeted small businesses in approving two other, intertwined measures (HJR 1003 and HB 1005) that deal with tangible personal property taxes. Currently, the state Constitution includes a $25,000 exemption on the value of tangible personal property, which can include such things as business equipment.

HJR 1003 is a proposed constitutional amendment that would give lawmakers flexibility to grant exemptions above $25,000. If voters approve the amendment in November, HB 1005 would increase the exemption to $50,000 and includes stipulations that would apply the break to small businesses and not larger corporations.

Tallahassee businesswoman Linda Cherry, who represented the National Federation of Independent Business at the meeting, said small businesses are struggling during the tough economic times and that easing tangible personal-property taxes would help.

?We cannot create jobs when government takes our time and resources,? she said.

The committee?s bills also would provide tax breaks to numerous specific industries.

As an example, one proposal would expand a sales-tax exemption on electricity used in packinghouses for fruits and vegetables. Another would provide a local business-tax exemption to real-estate sales and broker associates.

Trey Price, a lobbyist for the Florida Association of Realtors, said the associates work for real-estate brokers and shouldn?t be subject to the taxes. The proposed exemption (HB 361) would cost local governments about $3.8 million a year.

Source: http://saintpetersblog.com/2012/02/small-business-and-targeted-tax-breaks-moving-in-florida-house/

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