With a decline in state revenue, resulting from a weakened economy and the federal government reducing state government funds, many states are looking for ways to replenish their states’ revenue. Specially falling upon revenue from high-income earners. Another area states are focusing attention is to the residency status of taxpayers who are no longer filing in the state or those who have changed their tax reporting to either non-resident or part-year resident. When deciding a taxpayer’s residency, there is a two-tier guideline in which States follow. The first guideline is the number of days a person is physically located in the state. If it’s more than six months, the taxpayer will be taxed as a resident. The second guideline a state follows is if the taxpayer is in the state for less than six months but is considered to be “domiciled” in the state, then they will be taxed as a resident. Domicile is decided by many different facts and circumstances, such as: schools of any dependents, doctors used, activities and clubs the tax payers involved in, any religious factors, where other close friends and family live, as well as the location of the taxpayer’s personal residence. The taxpayer needs to make Florida their home, in order to receive the “no tax” benefits of Florida.  

As more and more of these private equality firms and hedge funds relocate to Florida their employees will benefit greatly from the low cost of living and personal tax credits and advantages. Seeing as many of these companies work all over the world and a certain location of their business is not necessary. The additional income of these employees is a great benefactor to decide to relocate. The infrastructure of Florida’s lifestyle is such that it can acclimate to the suburban families, the millennial’s, and the high-end city individuals. There is a community and lifestyle that will meet everyone’s needs when moving an entire company to this amazing tax-free state. Both business owners and employees will benefit greatly from all Florida has to offer.

Many businesses have and continue to be successful operating in Florida. When you combine all the other business advantages along with the excellent tax advantages and the excellent quality of life it is easy to see how the cost competitive environment of Florida is unbeatable.

Readers should note that this article is only intended to convey general information on these issues and that FAS CPA & Consultants (FAS) in no way intends for the contents of this article to be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services.  This article cannot serve as a substitute for such professional services or advice.  Any decision or action that may affect the reader’s business should not rely solely on the contents of this article, but should rather be consulted on with a qualified professional adviser. FAS shall not be responsible for any loss sustained by any person who relies on this presentation.  This article is subject to change at any time and for any reason.