Florida Tax System (Essay Sample)

Florida Tax System Name Institution Affiliation Florida Tax System Governments constitute tax authorities to collect revenue from their citizens to run the affairs of their nations. In such taxation systems, various types of taxes are imposed. Most states impose personal income taxes on the citizens which become the major source of income for the governments. Payment of levies and taxes is an obligation with the lack of compliance leading to prosecution. The paper presents an analysis of the various types of taxes in Florida and the challenges facing the taxation authority in carrying out their mandate. In Florida State, the citizens are not expected to pay personal income taxes (Bradley, 2012). The primary source of government taxes amassed in Florida comprises sales and use tax, corporate income taxes and intangible tax. The prohibition on the collection of income taxes puts much pressure on sales tax. The sales and use tax were instituted in 1987 (Bradley, 2012). The sales tax rate is slotted at six percent while the corporate taxes are paid by corporations operating in Florida. There are also property taxes based on the market value of an asset. According to Bradley (2012), the property tax of the ad valorem provides resources for funding the local government in Florida. The physically challenged and elderly citizens are exempted from property tax. Also, the widows and widowers, senior citizens, blind persons and veterans are also exempted from the levy. Additionally, there is the tourist development tax rated at 13% as well as the discretionary sales surtax" on all real estate facilities used as rentals (Bradley, 2012). In the 1980s, the sales tax base was expanded to include other services. Florida State also levies taxes on fuel taxes, lead-acid battery fee, option transient rental taxes, communications services tax, new tire fee, rental car surcharge as well as motor vehicle tax (Bradley, 2012). The use tax is imposed on merchandises purchased from outside Florida state and utilized in the state within the first six months of acquisition. The taxation system in Florida is complicated. There exists a complex filing system regarding individual sales returns (Bradley, 2012). The sales tax is mostly affected since the various vendors are charged based on the diverse locations from which they make their sales. The approach led to massive storms with the challengers criticizing it for being unwise, unfair, and unconstitutional (Bradley, 2012). The complications also arise from the lack of streamlined tax system due to increased costs of ensuring compliance. Also, the imposition of the property taxes ca...