Tax Glitch

By: Associated Press
By: Associated Press

A bill to fix a corporation income tax law glitch, which could
have cost Florida businesses millions, was the first measure to
pass both houses in this year's regular state legislative session
Thursday.

A unanimous House vote sent the bill (SB 1112), which passed the
Senate as the session opened Tuesday, to Gov. Charlie Crist. He is
expected to sign it.

The measure would correct a law the Legislature annually passes
to "piggyback'' Florida's corporate income tax to the federal tax
code. Last year's version, though, made an exception for a federal
stimulus provision that lets corporations speed up depreciation of
certain assets for the 2008 tax year.

Maintaining that link would have cost the state $146 million in
an extremely tight budget year that runs through June 30.

The exception, though, also inadvertently increases a
corporation's state tax if it takes the federal depreciation bonus.


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