Report Sheds Light on “Invisible” Tangible Personal Property Business Tax
- BY FGA
Amendment 10 on Florida Ballot Would Create Significant Business Tax Relief
A report authored by the Naples, Florida-based Foundation for Government Accountability (FGA) and the Washington, D.C.-based Tax Foundation takes a close look at a tax most taxpayers are unaware of, but hits hard at many businesses’ bottom line.
The report, States Moving Away From Taxes on Tangible Personal Property, was authored by FGA Senior Fellow for Tax Policy Joyce Errecart, and the Tax Foundation’s Ed Gerrish and Scott Drenkard. It provides a detailed explanation of tangible personal property taxes (taxes, typically targeting businesses, charged on the value of items such as furniture and manufacturing equipment), an overview of TPP tax policies across the states, and why states are moving away from TPP taxes as a source of revenue.
This November, Florida voters will vote on Amendment 10, which seeks to increase the amount of equipment a business can own before being subjected to tangible personal property taxes, and gives counties and municipalities the ability to reduce TPP taxes even further, or eliminate them entirely.
“This report shows that the tangible property tax is a particularly bad tax,” Errecart said. “It can be burdensome, especially for small businesses, and can cause economic distortions. In Florida, we need to reduce this tax, and let small businesses can do what they do best—create jobs. “
Upcoming publications by the Foundation for Government Accountability will discuss more directly what Amendment 10 means for small businesses in Florida, and the out-of-work Floridians hoping entrepreneurs will have the resources to grow and create more jobs.
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