Florida’s tax structure makes it a desired location for businesses and an ever-growing number of Americans who wish to call the Sunshine State home. The lack of a state income tax means that the state economy is based largely on sales tax revenues, with a large boost from the tourism industry, and complemented by other major industries such as agriculture. Local governments are funded by local taxes, mostly from property taxes.
Property taxes have risen steeply in recent years and with similar increases in property insurance, the Florida real estate market has suffered. This situation has impacted the state budget and Florida’s economy.
While the average wage rose, and the unemployment rate dropped slightly, nearly 100,000 fewer jobs were created in Florida in 2006.
Citrus exports are up and increasing numbers of visitors are bringing billions of dollars into Florida’s economy.
Per capita income is up while the state budget is less than the previous year.
The average property tax burden is approximately 8 percent of per capita income.
New and existing home sales are substantially lower.
The poverty level in Florida has dropped by one percent.
Maintaining