How Does Florida Compare? State and Local Taxes June 26, 2007 Dominic M. Calabro President and CEO, Florida TaxWatch

Relative to other states, Florida’s tax burden is lower than average, but getting closer to that average Floridians’ state tax burden is well below average, but our local tax burden, fueled by property taxes, is higher Floridians’ combined state and local tax burden now ranks 26th per capita and 36th as a percent of personal income When all “own source” revenue is considered, Floridians’ relative burden gets larger. Florida’s local rank for these revenues as a percent of income is 3 rd and its combined state and local rank is 29 th Florida is one of seven states without a personal income tax Comparing Florida’s Tax Structure

Florida state government relies heavily on the general sales tax. Our per capita collections are fifth largest, one and a half times the national average Transaction taxes (general and selective sales) make up 74% of Florida’s state tax collections, compared to the national average of 47% Florida taxes purchases of alcoholic beverages and utilities heavier than average and when local taxes are included, Florida’s top gas tax rate is the nation’s fourth highest Florida relies more heavily than most states on local governments to fund the state’s needs. More than half of all government “own source” revenue in Florida is collected at the local level Florida’s Tax Structure (cont.)

FLORIDA U.S. Percentage of Total State Taxes Provided by Each Source Transaction Taxes = Sales Taxes + Selective Sales Taxes Florida = 74%U.S. = 47% Source: Florida TaxWatch and U.S. Department of Commerce, May 2007.

State General Sales Tax Rates As of January 1, %California 7%Mississippi, New Jersey, Rhode Island, Tennessee 6.5%Minnesota, Nevada, Washington 6.25%Illinois, Texas 6%Arkansas, Connecticut, FLORIDA, Kentucky, Idaho, Indiana, Michigan, Pennsylvania, Vermont, West Virginia 5.6%Arizona 5.5%Nebraska, Ohio 5.3%Kansas 5%Iowa, Maine, Maryland, Massachusetts, New Mexico, North Dakota, South Carolina, Virginia, Wisconsin 4.75%Utah 4.5%Oklahoma 4.25%North Carolina 4.225%Missouri 4%Alabama, Georgia, Hawaii, Louisiana, New York, South Dakota, Wyoming 2.9%Colorado No TaxAlaska, Delaware, Montana, New Hampshire, Oregon Source: National Federation of Tax Administrators and Florida TaxWatch, May 2007.

Percentage of Total State and Local Taxes by Source FLORIDA U.S. Source: Florida TaxWatch and U.S. Department of Commerce, May 2007.

Summary of Tax and Revenue Rankings Taxes Per Capita Tax FloridaRank U.S Average State Taxes (FY 2006) $2,08538$2,373 State Own Source 2, ,954 Revenue Local Taxes (FY 2005) 1, ,515 Local Own Source 2, ,396 Revenue State & Local Taxes 3, ,706 (FY 2005) S&L Own Source Revenue 5,113265,350 Source: Florida TaxWatch and U.S. Department of Commerce, May 2007.

Summary of Tax Rankings FY 2006 Taxes Per Capita Tax FloridaRank U.S Average State Taxes $2,085 38$2,373 General Sales Taxes 1, Selective Sales Taxes Documentary Stamp License Corporate Income Property Personal Income No Tax No Tax 821 Local Taxes (FY 2005) 1, ,515 Property 1, ,096 Source: Florida TaxWatch and U.S. Department of Commerce, May 2007.

Summary of Tax and Revenue Rankings Taxes Per $1000 Personal Income Tax Florida Rank U.S Average State Taxes (FY 2006) $ $69.11 State Own Source Gen Rev Local Taxes (FY 2005) Local Own Source Gen Rev State & Local Taxes (FY 2005) S&L Own Source Gen Rev Source: Florida TaxWatch and U.S. Department of Commerce, May 2007.

U.S Average: 45% Florida: 52% Florida Has the 4 th Highest Percentage of Total Revenue Provided By Local Government Source: Florida TaxWatch and U.S. Department of Commerce, May 2007.

State Taxes As A Percentage Of Personal Income Source: Florida TaxWatch and U.S. Department of Commerce, May 2007.

Florida’s Tax Growth ( $ in Billions) Total Growth State Taxes: Florida 82.6% U.S. 62.4% Local Taxes: Florida 94.7% U.S. 71.5%

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