Income tax in Florida

[RICHNTRISH]

Hi

Is there an income tax charge in Florida?

We understand that there is a sales tax on everything you buy but if you had your own business, would you have to complete tax retruns and pay a tax?

regards
Richard & Trish

[synthia]

There is no state income tax in Florida. We firmly believe it is the responsibility of tourists to support us via the sales and hotel taxes.

[Fatbrit]

Originally Posted by RICHNTRISH

Hi

Is there an income tax charge in Florida?

We understand that there is a sales tax on everything you buy but if you had your own business, would you have to complete tax retruns and pay a tax?

regards
Richard & Trish

No -- but as an E2 holder you will pay a very high property tax.

On the business tax, you'll pay to the federal government and may also (depending on what you're selling) have to collect and remit local sales tax.

[synthia]

Fatbrit - please explain this high property tax thing. Is it not qualifying for the homestead exemption? With the high price of houses, that really isn't significant. Aren't you the one that posted the ridiculous 20% figue? Do you live in Florida?

[synthia]

I just looked up the homestead exemption in my home county. It is $25,000. That means that the first $25,000 of a property's value is not subject to tax. At a rate of 2%, that saves $500 per year, or 250 GBP, enough to take a couple to the movies (no popcorn or drinks) about 10 times in the UK.

[Fatbrit]

Originally Posted by synthia

Fatbrit - please explain this high property tax thing. Is it not qualifying for the homestead exemption? With the high price of houses, that really isn't significant. Aren't you the one that posted the ridiculous 20% figue? Do you live in Florida?

Yep -- they'll exclude you from the homestead exemption -- will make your bill about 500 bucks more expensive

I have no idea where the accusation of 20% comes from. Provide a link and I'll reply.

I wouldn't be seen dead in Florida: too many Brits and too humid for my liking.

[Fatbrit]

Originally Posted by synthia

I just looked up the homestead exemption in my home county. It is $25,000. That means that the first $25,000 of a property's value is not subject to tax. At a rate of 2%, that saves $500 per year, or 250 GBP, enough to take a couple to the movies (no popcorn or drinks) about 10 times in the UK.

If 500 bucks isn't much to you, that's fine. But the story gets worse. Under the homestead exemption, the homesteader's house value can rise a max of 3% a year. However, without the homesteader exemption, there is no limit to the annual rise. I know of one permanent resident in Florida whose E2 neighbors are now paying $3,000 a year more in taxes for an identical property.

[RICHNTRISH]

Hi,
Thanks for the great answers ,its been very difficult so far finding this stuff out . What is property tax ? is this like our council tax/rates for local services based on house value in the UK .
We were planning to buy a house for cash after a short renting period so hopefully wont have to be worried with a mortgage .
What is business tax ? Our initial plan is to buy a Pool Route for approx $100,000 whilst my wife studys for a green card . If i dont pay income tax what do they base this annual business tax upon ?
Richard.

[twostep]

What do you mean by "my wife studies for a green card"?
You may want to go through the site of USCIS and read up on visa requirements. A 100k pool route may not qualify you.

[RICHNTRISH]

Originally Posted by twostep

What do you mean by "my wife studies for a green card"?
You may want to go through the site of USCIS and read up on visa requirements. A 100k pool route may not qualify you.

Sorry studies for a job that would gain her a visa leading to a green card.
reading up , $100,000 business is allowed but would need to put the cash up100% myself and work out a business plan to employ US national in 5 years .