Florida Residents
Intangible Personal Property Tax Repealed

August, 2006: A tax on stocks, bonds and other intangible personal property has been repealed by a new bill signed into law by Florida Governor Jeb Bush. Effective January 1, 2007, Florida residents will receive annual savings totaling more than $131 million.

The personal property tax is an annual tax based on the current market value of intangible personal property owned, managed or controlled by Florida residents or persons doing business in Florida.

The following property is considered Intangible personal property, according to the Florida Department of Revenue:

• Stocks
• Bonds
• Loans
• Mutual Fund Shares
• Notes
• Ownership in a Limited Liability Company
• Interest in Limited Partnerships, registered with the SEC
• Accounts Receivable not generated from the normal conduct of Trade or Business

Through December 31, 2006, the first $250,000 for single tax filers and $500,00 for married couples, of intangible property is exempt. The balance is taxed at a rate of $.50 per $1,000 or taxable intangible personal property.

Disclaimer: Any US tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

The content of this transmission does not constitute a professional service. Always consult with a competent professional service provider for advice on tax, accounting and other financial matters specific to your situation. If you wish to engage our firm for this purpose, please contact our office.