Florida’s tangible tax proves to be a nuisance

This time a year we get a LOT of complaints about the tangible tax. If you don't own a busines or rental properties you may have never heard of this little gem, but each March and November it is a proverbial thorn in the side of small business. The tangible tax is an ad valorem tax on tangible personal property. Most people associate ad valorem taxes with real property (houses, land, office buildings), but it can also apply to tangible personal property such as desks, computers, leasehold improvements, machinery, equipment and so on.

Each spring businesses must report their tangible personal property to the property appraiser in their county. These records are then used to assess an additional property tax in November based on the millage rates set by the county. Complying with the law in this case often costs as much or more than the tax itself. However, in some cases the tangible tax can be substantial (think Tropicana or Bealls Department Stores). At least one group is arguing that the tax even pushes businesses out of the state.

Relief may be in sight. Governor Crist has proposed a $25,000 exemption for tangible personal property. In Manatee County where my business is located that amounts to about a $500 break. Not a huge amount of money and certainly not enough for me to consider moving to Georgia and a state income tax. I guess my biggest problem with the tangible tax is that it feels like the government is double dipping. After all, I paid sales tax on those items when I purchased them. Not only did I pay 6% to the state but my local county tacked on an additional .5%. Now I get hit with an additional 2% of the assets assessed value EVERY year. It's a tough pill to swallow but small enough that I only think about it twice per year when it is assessed and collected.

I think Governor Bush did a great thing by pushing for and accomplishing a repeal of the intangible tax. It would be nice if his successor tackled its ugly cousin and left a similar smile on the faces of business owners.

Home office deductions for business owners

We've been getting a lot of questions regarding the availability of home office deductions lately. The rules are pretty simple. Your home must be used...

1. Exclusively and regularly as their principal place of business


2. A place where you meet exclusively and regularly with clients or patients in the normal course of business


3. You have a serperate structure that is used in your business, or


4. As a storage facility of your business on a regular basis

Employees must also use their home for the convenience of their employer to qualify for the deduction. For more information see IRS Tax Tip 2007-53 here. Many other resources are provided in the Tax Tip including a link to Publication 587.

Getting the Most out of Tax Season

For business owners, CFO's and controllers tax season can be a drain on productivity and a distraction. For most the time between February and March 15th means responding to CPA firm requests and adding one more deadline to an already hectic schedule. But it doesn't have to be that way. With a little insight you can transform tax season into a value added experience for your organization. In this web cast I'll tell you how.




Best Practices for Beginners

We consult with larger companies on best practices for their financial and accounting departments. CFO's and Controllers have little difficulty understanding what we mean by "best practices" but that is not always the case. Small business owners who oversee the books themselves may not understand why best practices are important or if best practices are even relevant for a business their size. In this web cast Axiom founder Joey Brannon gives examples of three "best practices" that apply to any size business.





Setting Goals

In this video blog Axiom founder Joey Brannon talks about the importance of setting goals and how the process should work. We're often asked to help clients set their goals and milestones critical to success. Often this is easier said than done. However, there are a few key criteria for goal setting that will give you a much better chance of accomplishing what you set out to do.