Taxation

Question 1

The state may not levy taxes on:

Answer 1

real or tangible property (ex: ad valorem taxes). That is reserved for counties

Question 2

Motor vehicles, boats, airplanes, trailers, trailer coaches, and mobile homes are subject to:

Answer 2

a license tax, but not ad valorem taxes

Question 3

An intangibles tax is assessed on:

Answer 3

stocks, bonds, mutual funds, money market funds, shares of business trusts, and unsecured notes

Question 4

The tax on intangible property cannot exceed:

Answer 4

2 mills per dollar of assessed value.

A mill unit is equal to one-tenth of $.01 or $.001 used to levy taxes.

Question 5

Ten mills =

Answer 5

a penny.

20 mills is 2 cents

25 mills is two-and-one-half cents

Question 6

The intangibles tax is repealed for:

Answer 6

individuals and businesses. The only current application is for leases of government-owned real property and the one-time intangible tax on notes secured by a mortgage on Florida real property

Question 7

There is no income tax:

Answer 7

on state residents who are natural citizens

Question 8

Local governments are only permitted to impose:

Answer 8

property (ad valorem) taxes

They may be authorized by general law to levy other taxes

Question 9

All non-state taxes must be at a uniform rate within:

Answer 9

each taxing unit.

The rate does not have to be uniform between each taxing unit.

Exception: Taxes on intangible personal property may be at different rates within a taxing unit.

Question 10

Because of the limitations on impositions of taxes, local governments often:

Answer 10

try to classify such action as fees instead.

Question 11

In imposing a licensing fee, the rate must:

Answer 11

1) be reasonable; and

2) have a reasonable rational nexus between the amount imposed and the cost of imposing it

Question 12

User fees are charged:

Answer 12

only to the person using the service, and the amount of the charge generally is related to the actual governmental goods or services provided.

Usually a monthly charge (electric, water, sewer, etc)

Question 13

For impact fees not to be considered an unlawful ta, the needs and burdens must be weighed:

Answer 13

in proportion to the charge

Ex: A new homeowner pays an impact fee as a part of closing costs

Question 14

Impact fees are distinguishable from user fees because:

Answer 14

impact fees will only be charged once

Question 15

What is a special assessment?

Answer 15

A specific levy designed to recover the costs of improvements that confer local and peculiar benefits upon property within a defined area

Question 16

Property owned and used exclusively by a municaplity for public purposes is:

Answer 16

exempt from taxation.

The use of property can include vacant unimproved land, as long as it is not being used for a private purpose

Exception: If a municipality owns property outside its own boundaries, it may be required to pay taxes unless it is used for educational, literary, religious, scientific, or charitable purposes

Question 17

A county or municipality may choose to grant property tax exemptions to new businesses and expansions of old businesses for:

Answer 17

community and economic development reasons

The exemption must be granted only by county ordinance or municipal provision and approved by the electors.

Question 18

A property tax exemption may be granted for a renewable energy source device and the real property on which it is located. The value of the tax exemption:

Answer 18

cannot exceed the cost of the device.

Also, the time of the tax exemption must be 10 years or less

Question 19

Historic properties may get:

Answer 19

tax exemption from a county or municipality

Question 20

By general law, what value of tangible personal property is exempt from taxation?

Answer 20

$25,000

Question 21

Homestead Exemption for purposes of taxation:

Answer 21

Up to $25,000 is exempt from taxation except for assessments and special benefits. (Special benefits are improvements or services that benefit property owners, such as fire services, garbage collection, etc)

As of Jan. 1, 2008, there is an additional $25,000 exemption on nonschool taxes for valuations between $50,000 and $75,000.

Question 22

Persons aged 65 or older are entitled:

Answer 22

to an additional homestead exemption of up to $50,000 for any person who has the legal or equitable title to real estate and maintains on such property his permanent residence, provided the household income is $20k or less.

Question 23

Homestead exemptions are limited:

Answer 23

to only one family per residential unit.

The exemption cannot exceed the assessed value of the real estate

Question 24

Homestead qualifications:

Answer 24

1) Owner must be a natural person
2) Exemption applies to Florida residents who are U.S. citizens or permanent resident aliens or those who have the intent to remain legally under U.S. Immigration laws.
3) Eliminating the “head of household” requirement in 1984 allowed single people to claim the exemption
4) To have the property qualify as a primary residence, the owner must establish that he or his family made, or intend to make, the homestead into their permanent residence
5) The homestead protection attaches the day one first occupies the property with the intent to make it his permanent residence.
6) If title is held by the husband alone, a wife may file for him, and vice versa
7) If property is held by the entirety, one spouse may file as agent for the other

Question 25

Portability of Homestead exemption:

Answer 25

A homeowner can transfer the homestead exemption cap from one homestead to another. This prevents elderly homeowners from being “locked in” to a house because they cannot afford to lose the homestead exemption

Question 26

Counties, school districts, municipalities, special districts and any local government body with taxing powers can issue a:

Answer 26

bond or certificate of indebtedness

Question 27

Two types of bonds the state can issue:

Answer 27

1) General Obligation Bonds

2) Revenue Bonds

Question 28

General Obligation Bonds:

Answer 28

Guaranteed by the full faith and credit of the state. Paid from the general revenue collected by the state. Voters must pass this.

Question 29

State Revenue Bonds:

Answer 29

For a capital project - but whatever is being built will generate income (ex: Turnpike expansion - state will get money from that w. the tolls).

No vote required because it pays for itself.