Ditchmen • NUCA of Florida Ditchmen • February 2018 | Page 10

TAX LAW
NEW
RAISES QUESTIONS
via News Service Florida
Florida lawmakers are dealing
with the consequences of the
new federal tax law, which
sharply cuts the amount of
taxes paid by corporations.
Lawmakers are trying to
understand the impact of the
Tax Cuts and Jobs Act of 2017,
which took effect Jan. 1 and
cut the federal tax rate paid
by major corporations and
businesses from 35 percent
to 21 percent. It also changed
deductions and other
accounting methods that can
alter business’ tax liabilities.
Since Florida’s corporate
income tax, which is 5.5
percent, is based on federal
tax liability, changes in federal
law can affect the amount of
tax revenue the state collects
from businesses. Last year,
10
DITCHMEN • FEBRUARY 2018
Florida collected nearly $2.2
billion in corporate taxes,
making it one of the state’s
most significant revenue
sources, outside of the sales
tax.
Senate Finance and Tax
Appropriations Chairwoman
Kelli Stargel, R-Lakeland,
is sponsoring an annual
bill (SB 502) that conforms
or “piggybacks” Florida’s
corporate tax law with the
federal tax code, adopting or
modifying changes made at
the federal level.
But the piggyback bill, which
is scheduled to be heard by
the Senate Appropriations
Committee on Tuesday,
has taken on much greater
significance this year because
of the sweeping nature of the
federal tax changes. It also
must accommodate the new
Bipartisan Budget Act of 2018,
which was signed into law
this month and also includes
some changes in federal tax
law.
“This is a very complex issue
for our corporations who look
to this bill each year to try to
clarify how they’re going to
file their corporate income
tax,” Stargel said before her
subcommittee unanimously
approved the piggyback bill
last week.
“We’re trying to recognize
that right now it’s just early for
everybody, so we’re trying to
give some accommodation
to the parts that are the
most significant swings from
maybe what it was last year,”
Stargel said.
State officials, businesses
and others are waiting for