Taxes & Exemptions
Low taxes help to make Leesburg a cost-effective business location.
Personal Income Tax
Fees and taxes must be paid by an organization filing any articles of incorporation, amendment thereof, or other paper relating to the incorporation, merger, consolidation or dissolution of the organization. Filing tax is based on the authorizing capital stock.
Sales and Use Tax
The sales tax rate is six percent on certain rentals or lease of certain real properties and transient living accommodations. The use tax is six percent on the total price of each taxable item brought into Florida to be used, consumed, distributed, rented or stored for use or consumption. Lake County has an additional one percent use tax. The tax is paid by the ultimate consumer and is collected by the retailer at the time of sale.
Sales Tax Exemptions
There is no state sales tax on groceries (except for soft drinks and food cooked or prepared on store premises or by restaurants or similar businesses), medicines (prescription and over-the-counter), residential telephone service and utilities, crop production, annual subscriptions or single family home rentals.
Dealer purchases of items for resale and new manufacturers' purchases of new machinery and equipment are exempt from sales tax. Existing manufacturers receive a sales tax exemption on the purchase of machinery and equipment when the tax paid on such purchases is in excess of $100,000 and it can be shown that there is an increase in productive output of not less than ten percent.
Manufacturers are exempt from paying sales tax on the purchase of (1) boiler fuels used in the manufacturing process; (2) raw materials that will be processed or converted to become a component of a finished product for resale; (3) materials, containers, labels, sacks or bags to be used one time only for packaging tangible property for shipment or sale; (4) items actually accompanying the product to the final buyer or ultimate consumer, without which the delivery of the product is impractical.
Property Tax on Automobiles
Corporate Income Tax
Florida's corporate income tax is one of the lowest in the United States. Florida taxes corporate income at a uniform 5.5 percent rate. A $5,000 exemption on net Florida taxable income is allowed before the 5.5 percent tax is applied.
Two types of intangible taxes are levied. (1) An annual tax of $1.50 per $1,000 of just valuation as of January 1 of all taxable intangible personal property. (2) A non-recurring $2.00 per $1,000 of just valuation of notes, bonds and other obligations to pay money which are secured by a mortgage, deed of trust or other lien on real property in Florida.
Tangible Personal Property Tax
The tax base is all forms of tangible personal property physically located in Florida such as business fixtures, stocks in trade and supplies, livestock and equipment/ machinery for shop, plant or farm. Household goods and personal effects being used by the homeowner are exempt. Assessment is just value.
Documentary Stamp Taxes
Taxes are levied at $0.35 per $100 on bonds, promissory notes, mortgages, trust deeds, security agreements and other written promises to pay money. On deeds, the imposed tax rate is $0.55 per $100.
Florida law provides for the annual assessment and collection of property taxes on land, buildings and business equipment. Property taxes are assessed and collected at the county level as revenue for counties, municipalities, school districts and special taxing districts. The taxes become due November 1 of each year, with a discount of up to 4% allowed for early payment.
Property Tax Abatement Program
The City of Leesburg has a tax abatement program that can be used to reduce or eliminate the City’s portion of the property tax for a period up to 10 years.
Property Tax Exemptions
Florida grants certain exemptions from property taxes such as homestead exemption of $25,000, widow and widowers exemption, disability exemption and exemption due to blindness.
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