Intangibles exemption grows, but so do investments
By HELEN HUNTLEY
Published March 1, 2004
Investors get a big break on the Florida intangibles tax this year, but they aren't all as happy about it as you might expect. Some of the wealthiest are discovering, much to their dismay, that they have a bigger tax bill than they did last year.
Blame the stock market - and their multimillion-dollar portfolios.
The annual tax is $1 on each $1,000 of stocks, bonds and mutual funds held outside retirement accounts. In the past, the first $20,000 was exempt, or $40,000 for a couple. This year, the first $250,000 is exempt, or a whopping $500,000 for a couple. But with the stock market's recovery, some people's portfolios have gone up far more than that in value.
"People say "This tax is supposed to go down,' " Clearwater CPA William Tapp said. "But if they're in equities, they've had a real good spike in values in the last year. Often the increase in value has dwarfed the $500,000 exemption amount."
