On Thursday, Nov. 10, the House Finance and Tax Committee voted five to three in favor of legislation that would repeal Florida’s intangible tax.

House Bill 209 sponsored by Rep. Fred Brummer, R-Apopka – the only CPA in the Florida legislature – will repeal the $.5 million annual recurring tax imposed on stocks, bonds, notes and other intangible personal property. This legislation does not change the $2 million non-recurring tax on obligations secured by liens on Florida property.

HB 209 will have a negative fiscal impact of $123.8 million on state revenues, a negative $600,000 on local revenues for FY 2006-07, a negative $156 million on state revenues and a negative $600,000 on local revenues for FY 2007–08.

If this legislation passes the House and Senate during the 2006 legislative session, it will become effective Dec. 31, 2006. There still is one more committee stop before it goes to the floor for a vote by the full House. Sen. Mike Haridopolos, R-Melbourne, has filed a similar piece of legislation in the Senate. SB 260 has been referred to four committees, but has yet to be heard.

• Click here to view HB 209.

• Click here to view SB 260.