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FLORIDA INTANGIBLE TAX
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A person who makes Florida his or her principal residence or domicile may have a duty to file an intangible tax return with the Florida Department of Revenue no later than June 30 of each year. The return must report all intangible personal property owned as of January 1 of that year which is not exempt.

Cash, savings accounts, certificates of deposit, individual retirement accounts, the cash equivalent of annuities and life insurance policies are exempt from the Florida intangible tax. Promissory notes, bonds, and other obligations issued by the state of Florida or its municipalities, counties and other taxing districts, or by the United States government and its agencies are exempt from the Florida intangible tax. However, notes, bonds, and other obligations issued by states other than Florida or municipalities outside Florida or issued by other nations are subject to the Florida intangible tax. Promissory notes secured by a mortgage, deed of trust, or other lien on real property located either in Florida or outside the state of Florida are not subject to the annual intangible tax.

Shares of stock of corporations regularly listed on any public stock exchange or regularly traded over-the-counter are subject to this intangible tax at the value as of the closing price on the last business day of the previous calendar year. Bonds regularly listed on any public stock exchange or regularly traded over-the-counter are subject to this intangible tax at the value of their closing bid prices on the last business day of the previous calendar year.

The annual intangible tax is 1 mill or $1.00 per $1,000 of value. Every natural person is entitled each year to an exemption for the first $20,000 of the value of property subject to this annual tax. A husband and wife filing jointly are entitled to an exemption of $40,000 of the value of property subject to this annual tax. Every natural person who is a widow or widower, or who is blind, or who is totally and permanently disabled, is entitled to an additional exemption of $500 of property otherwise subject to this tax. In addition, no person is required to pay this annual tax in any year when the aggregate annual tax upon the person's intangible personal property, after exemptions, would be less than $60. In such case, an individual is not required to file an annual return.

A taxpayer may claim a discount for the early payment of the intangible tax. The discount is 4 percent if the return is filed and the tax is paid before the last day of February,3 percent if paid by the last day of March, 2 percent if paid by the last day of April and 1 percent if paid by the last day of May. The penalty for not timely paying the intangible tax by June 30 is 10 percent of the tax for each calendar month or portion thereof from the due date until paid. The penalty for not timely filing the annual tax return by the due date is 10 percent of the delinquent tax for each calendar month or portion thereof during which the return remains unfiled. However, the combined total for all penalties assessed will not exceed 10 percent per calendar month, up to a limit of 50 percent of the total tax due. If an annual tax return is filed and property is either omitted from it or undervalued, then a specific penalty is charged. This specific penalty is 10 percent of the tax attributable to each omitted item or to each undervaluation. No delinquency or late filing penalty is charged with respect to any undervaluation.

A recent change to the Florida statutes states that the trustee of a trust is not responsible for reporting the trust's intangible personal property and paying the annual tax on it. The Florida statutes now state that each Florida resident with a beneficial interest in a trust is responsible for returning the resident's equitable share of the trust's intangible personal property and paying the annual tax on it. This is important because only individuals are entitled to the personal exemptions from intangible taxation. However, the trustee of a trust may file a return and pay the tax on the equitable trust shares of all Florida residents having beneficial interests.

The custodian of a Florida minor under a Florida gifts to minors or similar act is required to file the intangible tax return for the minor's intangible personal property which is subject to the custodian and to pay the annual tax on it.

This page is excerpted from the Florida Senior Legal Guide. Disclaimer.