Florida Intangibles Tax Planning

We formerly assisted clients with Florida intangibles tax planning using partnerships and/or intangibles trusts, as appropriate. The recurring (annual) Florida intangibles tax was repealed for all years after 2006.

This repeal does not affect the non-recurring (one-time) intangibles tax paid on the recording of real estate mortgages.

The word “repeal” here should be in quotes because the statutory and regulatory framework for the tax was never eliminated.  The tax rate was simply reduced to 0.0%.

This makes it easy for the Florida legislature to reimpose the tax if needed.  Due to state budget shortfalls, legislation has indeed been filed from time to time to reinstate the recurring intangibles tax, but nothing to date has passed.

Because it is possible that this tax may return, we urge clients to consider keeping their existing intangibles tax planning intact if there is no inconvenience in doing so.

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