Proposed Committee Bill WMC 19-03 – Relating to Corporate Income Tax

On Wednesday, April 17, PCB WMC 19-03, sponsored and heard by the House Ways and Means Committee, was reported favorably with 11 yeas and 6 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this legislation.

Florida imposes a 5.5 percent tax on certain income of corporations doing business in Florida. Florida uses federal taxable income from federal tax returns as a beginning point to calculate corporate income tax owed to Florida. Florida updates its utilization of the Federal Internal Revenue Code (IRC) by adopting the code as it exists on January 1 in any given year. Adopting the code on an annual basis ensures the Florida tax code reflects any relevant changes to the IRC that were made during the prior year. The bill:

• Updates the Florida corporate Income Tax Code by adopting the Internal Revenue Code as in effect on January 1, 2019;
• For Florida corporate income tax purposes, provides for a subtraction of global intangible low-taxed income (GILTI) from taxpayers’ federal taxable income;
• Extends the current automatic tax rate adjustment and refund mechanism two years;
• Requires corporate income taxpayers with taxable years beginning during 2018 or 2019 calendar years to submit certain information from their federal tax returns to the Department of Revenue and to certify the accuracy and truthfulness of the information; and
• Requires the Department to create a secure online application for the taxpayers to submit the required information beginning September 3, 2019, and to impose a penalty upon taxpayers who fail to timely provide the information.

AIF supports a reduced corporate income tax on businesses to encourage corporate growth and the expansion of employment opportunities in Florida.