Florida: Department of Revenue Announces Corporate Income Tax Rate Reduction

Recently, the Florida Department of Revenue announced that the corporate income tax rate is reduced from 5.5 percent to 4.458 percent for taxable years beginning on or after January 1, 2019 but before January 1, 2022. The announcement notes that further reductions in the tax rate are possible for taxable years beginning on or after January 1, 2020 and January 1, 2021. Recall, when the Florida Legislature updated the state’s conformity to the Internal Revenue Code after the enactment of federal tax reform, the Legislature adopted certain provisions allowing for an automatic downward adjustment of the corporate income tax rate if the actual net collections for fiscal years ending June 30 of 2019, 2020, and 2021 exceeded “adjusted forecasted collections” for that year.  Please contact Jeremy Dukes at 954-847-3971 with questions on the rate reduction.