1) No State Income Tax 

This, in and of itself, can save high net worth individuals hundreds of thousands of dollars over time.  However, it can benefit anyone. Think about retirees with IRAs, 401(k)s or other tax deferred plans.  While the distributions are generally taxable at the federal level, there is no tax at the state level in Florida.

2) No Estate Tax (Death Tax)

Florida does not have a state death tax.  Decedent’s that have a taxable estate can save hundreds of thousands, if not millions, in estate tax if they are a Florida resident.

3) No Intangible Tax

Florida does not have an intangible tax (a tax on assets such as stocks and bonds).  Florida did have an intangible tax at one time, however, that tax was repealed.

4) Homestead Protection

Florida protects the homestead (the primary residence) from creditors and also affords substantial bankruptcy protection.

5) Save our Homes Real Estate Tax Protection

Every person who owns and resides in a home in the State of Florida and in Good Faith makes it his or her permanent home is eligible for a $25,000 reduction in the home’s assessed value for property tax purposes.

In Collier County (Naples) the homestead exemption saved the average homeowner $325 in property tax.  Moreover, the save our homes “cap” prevents the accessed value from increasing at more than 3% per annum.  This “cap” has been very beneficial to Florida residents in keeping their property tax rates at a more “reasonable” level than non-resident landowners. Note: The law that established the save our homes cap is subject to change and alternatives to the law will be voted on in 2008.

To learn more, please contact:

Scott M. Kellett, J.D. 

President

Bank of Florida Trust Company

Telephone (239) 254-2109

Email skellett@bankofflorida.com