Tax Policy

Taxes should fund things we share. Think about your library, school, or favorite park. These are places where we learn about the world or reconnect with nature; places that catalyze opportunity, tie us together as a community, and where people can get what they need to build a successful future. For too long, the responsibility of sustaining these public goods has fallen disproportionately on those who are struggling the most to make ends meet—people with low incomes, rural communities, and people of color.

Introduction

By and large, Southern state tax systems are regressive, which means that people who are living below the poverty level pay the largest share of their household income in taxes. Florida has the most regressive tax system in the South. This is due to a history of decisions that have shifted and solidified an outsized tax responsibility onto households with low to moderate income, who are disproportionately Floridians of color. Early 20th-century public decisions to turn away from tax policy based on a person’s ability to pay and toward a tax code that benefits wealthy and predominantly white residents have inhibited Floridians’ prosperity and exacerbated income and race inequity well into the 21st century.

Image Description: Florida State Capitol

1917 1917 – Adoption of Driver’s Licenses and Vehicle Registration Fees As cars became more accessible in the early 20th century, policymakers realized the need to develop more public infrastructure. Automobile-related taxes and fees exemplify ... Learn More

1921 1921 – Adoption of Gasoline/Motor Fuel Tax Then-Governor Gary A. Hardee and the Legislature acknowledged the need to finance Florida’s infrastructure to accommodate the state’s booming population and tourism industr... Learn More

1924 1924 – Prohibition of Personal Income and Inheritance Taxes The state Legislature passed, and voters approved, a constitutional amendment to prohibit personal income and inheritance (or estate) taxes in Florida. The thinking was tha... Learn More

1924 1924/1931 – Passage of Intangibles Tax Amendment and Postponed Implementation In 1924, voters had to make a crucial decision: whether the state should distinguish between intangible property (e.g., an item of value that cannot be touched or physicall... Learn More

1931 1931 – Major Increase of Motor Fuel Tax Florida policymakers increased the gasoline penny tax to 7 cents per gallon in 1931. It was not until 40 years later, in 1971, that legislators raised it to 8 cents per gal... Learn More

1931 1931 – Adoption of Inheritance Taxes In 1930, 85 percent of Florida voters approved a constitutional amendment to institute an inheritance tax, or a tax imposed on an estate for the privilege of transferring p... Learn More

1934 1934 – Approval of Homestead Exemption In 1934, Florida voters approved a homestead exemption on the first $5,000 of a property’s value to help homeowners by lowering their property tax bill. Although the 1940 C... Learn More

1949 1949 – Adoption of Sales Tax During a special session, policymakers adopted a 3 percent general sales tax, alongside exemptions like groceries purchased for human consumption and prescription drugs ava... Learn More

1971 1971 – Passage of Corporate Income Tax The state Legislature passed and placed on the ballot a measure to authorize the levy of a state corporate income tax (CIT). Florida voters overwhelmingly approved the amen... Learn More

1980 1980/2006 – Increases in Homestead Exemption (For information on the approval of the homestead exemption in 1934, click here.) In 1980, Florida voters increased the homestead exemption to $25,000, and in 2006, voters... Learn More

2005 2005 – Termination of Inheritance Taxes As of 2005, the inheritance tax is no longer active in Florida — this is because the federal government stopped offering a credit for paying the state tax. Subsequently, F... Learn More

2006 2006 – Repeal of Intangibles Tax Wealth taxes are crucial tools for addressing generations of systemic injustices that have made it harder for Black and brown communities, as well as Floridians of all race... Learn More

2023 2023 – Today: Shaping Our Future in Tax Policy We must advocate for a right-side up tax system that addresses racial inequities and collectively funds our future — schools, hospitals, transit — to create a Florida where... Learn More