Taxes

Nassau County and Florida State Tax Information

FLORIDA TAX ANALYSIS
Personal Tax Income = None
State-Levied Property Tax = None
Business Inventory Tax = None
Corporate Franchise Tax = None on capital stock.
State Corporate Income Tax = 5.5% of Federal Adjustment / $5,000 of Net Income Exempted
Occupational License Tax = A local tax for the privilege of engaging in certain specified types of businesses may be required by county governments and incorporated municipalities.
Sales and Use Tax = 6% imposed upon the following:

6% sales and use tax applies to:

- Purchases of tangible personal property made in other states by persons or
business entities for use in Florida.
- Manufacturers on the cost price of products removed from inventory for their own use.
- Sale of farm equipment is taxed at 3%.

Exemptions apply to:

- New and expanding manufacturers. Purchases of machinery and equipment used by a new Florida
business to manufacture, produce or process tangible personal property for sale.
- Certain printing and publishing firms, silicon technology and for maintenance or repair of aircraft.
- Pollution control equipment.
- Electricity and steam used by manufacturers if 75% or more is used in the manufacturing process.
- Goods manufactured or produced in the state for export outside the state.
- Purchases of raw materials incorporated in a final product for resale,
including nonreusable containers or packaging.
- Boiler fuels.
- Co-generation of electricity.
- Aircraft modification, maintenance and repair.
- Commercial space activity.
- Labor component of research and development expenditures.
- Entertainment industry.

Intangible Personal Property Tax = Intangible personal property tax is taxed at 1.5 mills.
Gross Receipts Tax = A tax levied upon utility providers.
Foreign Trade Zones = Duty Delayed or Exempt.

NORTHEAST FLORIDA TAX ANALYSIS 

Real Estate Taxes (Land and Constructed Improvements)
The State of Florida does not levy taxes on land or buildings

Nassau County The property tax rate is comprised as follows:

City/County: 5.3115
School: 7.4540
Other: 4.6330
Total millage: 17.3985

Tangible Personal Property Used in Business (Machinery and Equipment)
Personal property used in business is not taxed at the state level.

City/County Tax is based on assessed value of depreciated property, and taxed at effective mileage rate. (Depreciation varies with equipment, however, typical non-high-tech equipment will be initially assessed at 94% of value with an annual (12-year) depreciation to a base of 29% of value.)

Inventory Tax
None – There is no state tax on raw materials, work in progress, or finished goods.
City/County = None

Sales and Use Tax
State 6% on sales in Florida.

6% on sales in Florida exceptions:

– Goods in transit, i.e., products made in Florida but intended for use outside of the state are not subject to sales tax even though the sale and/or delivery may take place in Florida, e.g. aircraft or yachts manufactured and sold in FL but based elsewhere.
- The acquisition of machinery and equipment used in manufacturing is not subject to sales tax.
- Research and development – the labor component of the cost of developing a prototype product is exempt from Sales and Use Tax.

Nassau County = 1% local option.

Personal Income Tax
State = None
City/County = None

State Corporate Income Tax
State Rate is 5.5% of Florida’s portion of Federal taxable income, less an exemption of $5,000.
City/County = None

Intangible Tax
Government Unit Tax Description
State Rate is $1.00 per $1,000 of value on stocks, bonds, accounts receivable, and other taxable securities. Accounts receivable are 100% exempt from inclusion.
City/County = None

Occupational License Tax
State = None
City/County = Nominal, based on SIC and number of employees.

Unemployment Compensation Tax
State = This tax is 2.7% of gross payroll up to $7,000 per employee per year. After ten consecutive quarters, the company is rated between 0.2% – 5.4%.
City/County = None

Unitary Tax / Tax on Foreign Source Dividends
State = None
City/County = None

Foreign Trade Zone Availability
State = None Applicable
City/County = In place at Jacksonville International Trade Port and available as a sub-zone for other sites.