Florida Tax Changes - December 2024
Week Of 12.02.2024
Florida Property Tax Update
- Court Ruling: The Florida Supreme Court overturned a lower court's decision, granting a property tax exemption to a city-owned public golf course.
- Management Agreement: The golf course is managed by a private entity under a management agreement that uses a revenue and expense-based formula for compensation.
- Constitutional Basis: According to the Florida Constitution, property owned by municipalities and used for public purposes is exempt from property tax.
- Court's Determination: The court found that the city maintained extensive control over the golf course and its management, which upheld the city's ad valorem tax exemption.
- Case Reference: This ruling is documented in City of Gulf Breeze, etc., v. Gregory S. Brown, etc., et al., Fla. S. Ct., Dkt. No. SC2022-0741, dated November 27, 2024.
Florida Sales and Use Tax Update
- New Sales Surtaxes: The Florida Department of Revenue announced new sales surtaxes approved by voter referenda in several counties, effective January 1, 2025:
- Hamilton County:
- Increase: From 7% to 8% due to a 1% emergency fire rescue services surtax.
- Marion County:
- Increase: From 7% to 7.5% due to a 0.5% school capital outlay surtax.
- Surtax Extension: The expiration date for the local government infrastructure surtax was extended to December 31, 2044.
- Martin County:
- Increase: From 6.5% to 7% due to a 0.5% local government infrastructure surtax.
- Seminole County:
- Rate: Remains at 7%.
- Surtax Extension: The expiration date for the local government infrastructure surtax was extended to December 31, 2034.
- Hamilton County:
Week Of 12.02.2024
Florida Property Tax—City-owned golf course exempt from Florida property tax.
The Florida Supreme Court overturned a lower court decision that denied a property tax exemption to a city-owned public golf course that was managed by a private entity under a management agreement that used a revenue and expense-based formula to determine the management company's compensation. Under the Florida Constitution, all property owned by a municipality and used exclusively for municipal or public purposes is exempt from property tax. Here, the court determined that, since the city entered into a management agreement under which the city retained and exercised extensive control over the golf course property and extensive control of the management company's operation of the property, the agreement and its formula-based compensation structure did not defeat the city's ad valorem tax exemption. (City of Gulf Breeze, etc., v. Gregory S. Brown, etc., et al., Fla. S. Ct., Dkt. No. SC2022-0741, 11/27/2024.)
Florida Sales and Use Tax Rates—Local sales surtaxes are approved in several Florida counties.
The Florida Department of Revenue has announced sales surtaxes approved by voter referenda in Hamilton, Marion, Martin, and Seminole Counties that take effect January 1, 2025. Due to a 1% emergency fire rescue services and facilities surtax approved in Hamilton County, the total state and local sales and use tax rate for Hamilton County increases from 7% to 8%. As a result of a 0.5% school capital outlay surtax approved in Marion County, the total state and local sales and use tax rate for Marion County increases from 7% to 7.5%. The expiration date for the local government infrastructure surtax was extended by referendum in Marion County from December 31, 2024, to December 31, 2044. Because of a 0.5% local government infrastructure surtax approved in Martin County, the total state and local sales and use tax rate for Martin County increases from 6.5% to 7%. In Seminole County, the total state and local sales and use tax rate will continue at 7%. The expiration date for the local government infrastructure surtax was extended by referendum in Seminole County from December 31, 2024, to December 31, 2034. (Florida Tax Information Publication No. 24A01-17, 11/25/2024; Florida Tax Information Publication No. 24A01-18, 11/25/2024; Florida Tax Information Publication No. 24A01-19, 11/25/2024; Florida Tax Information Publication No. 24A01-20, 11/25/2024.)
Florida Sales & Use Taxes—Local sales surtaxes are approved in several Florida counties.
The Florida Department of Revenue has announced sales surtaxes approved by voter referenda in Hamilton, Marion, Martin, and Seminole Counties that take effect January 1, 2025. Due to a 1% emergency fire rescue services and facilities surtax approved in Hamilton County, the total state and local sales and use tax rate for Hamilton County increases from 7% to 8%. As a result of a 0.5% school capital outlay surtax approved in Marion County, the total state and local sales and use tax rate for Marion County increases from 7% to 7.5%. The expiration date for the local government infrastructure surtax was extended by referendum in Marion County from December 31, 2024, to December 31, 2044. Because of a 0.5% local government infrastructure surtax approved in Martin County, the total state and local sales and use tax rate for Martin County increases from 6.5% to 7%. In Seminole County, the total state and local sales and use tax rate will continue at 7%. The expiration date for the local government infrastructure surtax was extended by referendum in Seminole County from December 31, 2024, to December 31, 2034. (Florida Tax Information Publication No. 24A01-17, 11/25/2024; Florida Tax Information Publication No. 24A01-18, 11/25/2024; Florida Tax Information Publication No. 24A01-19, 11/25/2024; Florida Tax Information Publication No. 24A01-20, 11/25/2024.)
Week Of 12.02.2024
Florida Property Tax—City-owned golf course exempt from Florida property tax.
The Florida Supreme Court overturned a lower court decision that denied a property tax exemption to a city-owned public golf course that was managed by a private entity under a management agreement that used a revenue and expense-based formula to determine the management company's compensation. Under the Florida Constitution, all property owned by a municipality and used exclusively for municipal or public purposes is exempt from property tax. Here, the court determined that, since the city entered into a management agreement under which the city retained and exercised extensive control over the golf course property and extensive control of the management company's operation of the property, the agreement and its formula-based compensation structure did not defeat the city's ad valorem tax exemption. (City of Gulf Breeze, etc., v. Gregory S. Brown, etc., et al., Fla. S. Ct., Dkt. No. SC2022-0741, 11/27/2024.)
Florida Sales and Use Tax Rates—Local sales surtaxes are approved in several Florida counties.
The Florida Department of Revenue has announced sales surtaxes approved by voter referenda in Hamilton, Marion, Martin, and Seminole Counties that take effect January 1, 2025. Due to a 1% emergency fire rescue services and facilities surtax approved in Hamilton County, the total state and local sales and use tax rate for Hamilton County increases from 7% to 8%. As a result of a 0.5% school capital outlay surtax approved in Marion County, the total state and local sales and use tax rate for Marion County increases from 7% to 7.5%. The expiration date for the local government infrastructure surtax was extended by referendum in Marion County from December 31, 2024, to December 31, 2044. Because of a 0.5% local government infrastructure surtax approved in Martin County, the total state and local sales and use tax rate for Martin County increases from 6.5% to 7%. In Seminole County, the total state and local sales and use tax rate will continue at 7%. The expiration date for the local government infrastructure surtax was extended by referendum in Seminole County from December 31, 2024, to December 31, 2034. (Florida Tax Information Publication No. 24A01-17, 11/25/2024; Florida Tax Information Publication No. 24A01-18, 11/25/2024; Florida Tax Information Publication No. 24A01-19, 11/25/2024; Florida Tax Information Publication No. 24A01-20, 11/25/2024.)
Florida Sales & Use Taxes—Local sales surtaxes are approved in several Florida counties.
The Florida Department of Revenue has announced sales surtaxes approved by voter referenda in Hamilton, Marion, Martin, and Seminole Counties that take effect January 1, 2025. Due to a 1% emergency fire rescue services and facilities surtax approved in Hamilton County, the total state and local sales and use tax rate for Hamilton County increases from 7% to 8%. As a result of a 0.5% school capital outlay surtax approved in Marion County, the total state and local sales and use tax rate for Marion County increases from 7% to 7.5%. The expiration date for the local government infrastructure surtax was extended by referendum in Marion County from December 31, 2024, to December 31, 2044. Because of a 0.5% local government infrastructure surtax approved in Martin County, the total state and local sales and use tax rate for Martin County increases from 6.5% to 7%. In Seminole County, the total state and local sales and use tax rate will continue at 7%. The expiration date for the local government infrastructure surtax was extended by referendum in Seminole County from December 31, 2024, to December 31, 2034. (Florida Tax Information Publication No. 24A01-17, 11/25/2024; Florida Tax Information Publication No. 24A01-18, 11/25/2024; Florida Tax Information Publication No. 24A01-19, 11/25/2024; Florida Tax Information Publication No. 24A01-20, 11/25/2024.)