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Good News for Florida Investors

Klotz on Bonds

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<h3>James A. Klotz</h3>

James A. Klotz

Good news for Florida muni bond investors: Significant changes in the Florida Intangible Personal Property Tax regulations for 2004 increase the exemptions for individual taxpayers.

The state has increased the exemption from $20,000.00 to $250,000.00 and from $40,000.00 to $500,000.00 for joint filers. All assets above these exemption levels are subject to taxes of $1.00 per $1,000.00 of value

If you file between January 1 and May 31, discounts range from 1% to 4%, depending on when they are received.

The increase in the exemption is important to Florida tax-free bondholders because it will allow them to own more municipal bonds issued by other states. This will give “in state” buyers an opportunity to enhance the diversification of their bond portfolios.

James A. Klotz is the President of FMSbonds, Inc.
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Nov 21, 2003

Please note that all investing entails risk. Fixed income securities are subject to risks that will affect their value prior to maturity. Some of these risks can be related to changes in market conditions, issuer creditworthiness, and interest rates. This commentary is not a recommendation to buy or sell a specific security. All references to tax-free income refer to U.S. federal income tax. Income earned by certain investors may be subject to the Alternative Minimum Tax (AMT), and or taxation by state and local authorities. Please consult with your tax professional prior to investing. For more information on these topics please click on the “Bond Basics” link below or search by keyword at the top of this page.