The Florida Intangible Tax

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The Florida Intangible Tax Powered By Docstoc
					               The Florida Intangible Tax
                                   by Howard J. Jordon AAMS
    Rather than institute a state      Company Act of 1940 if the              Married/Joint           Rate
income tax, the state of Florida       assets of the trust consist             $0 - $500,000           0
raises revenues in a variety of        solely of exempt property (e.g.         Over $500,000           1 mill
other ways. Florida imposes an         Florida municipals or U.S.
“intangible property” tax on all       government bonds).                       A “mill” equals $1 for every
non-exempt property owned by               “Cash” includes not only         $1,000 of intangible property
Florida residents. The tax is          paper currency and coins but         or .001. One mill equals 10
imposed on all intangible property     certificates of deposit, checking    “basis points” (a basis point
having legal “situs” in the state      accounts, bank money market          equals .01% or .0001).
of Florida. Situs refers to the        accounts, and the cash value of          Consider this example: a
“location” of something for tax        life insurance and annuity           couple (a married couple who
purposes. Intangible property,         contracts as well. Cash also         are residents of Florida) have
generally speaking, has situs in the   includes the accrued interest on     $1,300,000 worth of non-exempt
state of residence of the owner.       cash deposits. Money market          intangible property.
    Typical examples of intangible     mutual funds are not considered          Their tax will be $800
property include common                cash. However, if the money          [(500,000 x 0) + (800,000 x
stocks, bonds, mortgages,              market mutual fund meets the         .001)]
mutual funds, and the like. The        exception number 8 above (i.e.,          New residents of Florida
tax is imposed using the value         it is properly organized and         should pay the tax enthusiasti-
of intangible assets as of             invests solely in U.S. government    cally since it only applies to
January 1 of the year. For             paper) you may be able to secure     residents (and they are trying to
publicly traded stocks, bonds,         an exemption on that ground.         establish their residence) and
mutual funds, etc. the value is            Public limited partnership       the rate is so much lower than
the closing price on the last          interests are not exempt and are     state income tax rates. Existing
business day of the previous           to be valued at the traded           residents may wish to purchase
year. The tax is imposed on all        market value when traded on an       Florida municipal bonds.
individuals who are residents of       exchange or over the counter.        However, if the yield on a
Florida on January 1 of each year.     If there is not a traded market      comparable out of state bond is
    Certain types of intangible        value, it is to be valued at the     more than 20 basis points higher
property are exempt from the           acquisition cost. If the owner       than the Florida bond, the
tax. The exempt assets include:        feels that partnership should be     better economic decision is to
1) cash; 2) franchises; 3) general     valued at a lesser value, he/she     buy the out of state bond. Note,
and private limited partnership        may submit evidence (naturally,      however, that the intangible tax
interests; 4) Florida municipal        they don’t define this term) along   is a deductible tax for federal
bonds; 5) direct U.S. Govern-          with the return to support that.     income tax purposes.
ment agency bonds; 6) property             The tax is imposed according             Howard Jordon is Vice President
held in a tax qualified retirement     to the following schedule:              Investments of Raymond James &
plan or an IRA; 7) notes secured                                                                  Associates, Inc.
by real estate outside Florida;           Single                Rate               He can be reached for comments
8 units of unit investment trusts         $0 - $250,000         0                or question at 239-389-1041 or
organized under the Investment            Over $250,000         1 mill      Howard.jordon@Raymondjames.com

                                                       - 17 -
              Advances in Back Pain Relief
                                        by Dr. Roger Sessions
    The word “pain” comes from       annually for nonsteroidal             Hinsdale, Illinois, has participated
the Latin “poena” which means        anti-inflammatory drug                in a number of medical and
punishment or torment. In            (NSAID)-related gastrointestinal      scientific studies on relieving
1931, the famous missionary Dr.      complications and at least 16,500     pain. The result of Ferris
Albert Schweitzer wrote that         related deaths occur each year        Pharmaceuticals’ research on
“Pain is a more terrible lord of     among arthritis patients alone.       back pain was the invention of
mankind than even death              T h e s e anti-inflammatory drugs     the ActiveWorks® Pain relief
itself.” Ancient civilizations       include Advil®, Aleve®,               systems for acute and chronic
recorded their thoughts on pain      Tylenol®, ibuprofen, naproxen,        back pain. Ferris Pharmaceuticals’
on stone tablets and on walls.       and Aspirin®. The New England         research led to the discovery of
The treatments they tried to         Journal of Medicine in June 1999      the NanoTech™ Pain relief
eliminate pain included heat,        reported that “If deaths from         systems for acute and chronic
water and sun, among others.         gastrointestinal toxic effects        limb pain for the shoulders,
Early men and women believed         from NSAIDS were treated              elbow, wrist, ankle, and knee.
that pain was caused by evil         separately in the National Vital          In the January 2003 issue of
demons or spirits. Thus, people      Statistics reports, these effects     Orthopedics by Dr. Brian Cole,
turned to sorcerers, shamans,        would constitute the 15th most        M.D. (Department of Orthopedic
priests or priestesses for pain      common cause of death in the          Surgery, Division of Sports
relief and used various herbs,       United States. Yet these toxic        Medicine, Rush Presbyterian-St.
potions, rituals and ceremonies      effects remain mainly a ‘silent       Luke’s Medical Center, Chicago,
to treat their pain.                 epidemic,’ with many physicians       Illinois), Dr. Cole found that
    An estimated 90 million          and most patients unaware of the      patients had significant reduction
Americans suffer from chronic        magnitude of the problem.             in postoperative pain and lower
pain or continuous pain which        Furthermore, the mortality            skin temperatures after knee
lasts more than 6 months, with       statistics do not include deaths      surgery when using the Ferris
the resulting disability and lost    ascribed to the use of over-the-      Pharmaceuticals NanoTech™
productivity amounting to more       counter NSAIDS.” Doctors              Pain Pad. In his study Dr. Cole
than $100 billion a year.            frequently prescribe prescription     found “statistically significant
According to the American            narcotics, which dull the patient’s   reduction of postoperative pain”
Academy of Orthopedic Surgeons,      perception of pain by preventing      and “less postoperative swelling.”
80 percent of Americans will         pain messages from reaching the           In the February 2004 Journal
experience back pain some time       brain. But many of the most           of Pain of the American Pain
in their life. And, in a September   heavily prescribed narcotics,         Society, it was reported in a
2004 survey it was found that        such as morphine, have serious        clinical study by Alvin J. Beitz,
one in three Connecticut adults      negative side effects such as         PhD and Alan R. Kahn, M.D.,
are experiencing pain on a daily     sedation and the potential for        that the Ferris Pharmaceuticals
basis while as many as 60 percent    addiction.                            NanoTech™ Pain Pad was
of Connecticut adults experi-            Over the past few decades         “useful for reducing pain,” there
ence pain on a monthly basis.        many doctors, scientists and          was “a significant reduction in
    A doctor’s solution for pain     companies have been studying          Fos expression,” and that the
management typically consists        the causes and mechanisms of          pad “significantly reduced both
solely of the use of drugs.          pain in hopes of finding out          the number of inflammatory cells
However, according to                how to manage and relieve this        and the spread of inflammation.”
conservative estimates in the        worldwide crisis. One company         Dr. Beitz and Dr. Kahn also found
American Journal of Medicine,        specializing in nanotechnology,       that the tested Ferris Pharmaceuti-
107,000 patients are hospitalized    Ferris Pharmaceuticals Inc. of        cals NanoTech™ Pain Pad

                                                  - 18 -
“produces a local analgesic effect    single reported adverse reaction         In the thousands of years
when applied to the skin.”            (no MDR’s or Medical Device          since mankind first suffered with
    Two important back pain           Repor ts). The Fer ris               pain and the accompanying
studies have been performed           Pharmaceuticals NanoTech™            anxiety and depression, science
with the Ferris Pharmaceuticals       pain relief system is comfortable    and physicians have provided us
NanoTech™ back pain relief            to wear and causes no discomfort     with dramatic improvements in
system. In each of these studies,     upon application and removal         pain management. In 1869
the patients were treated for 10      during the recommended 10-day        Friedrich Bayer founded a small
days. The patients had back           treatment process.                   company in Barmen, Germany,
pain for at least six months prior        Dr. Alvin Beitz, an eminent      to produce dyes. In 1887, a Bayer
to enrolling in the study.            neurophysiologist, suggests that     chemist developed a “wonder
    In the most recent study of       the NanoTech™ pain relief            drug” called the aspirin which
patients with untreatable chronic     systems relieve pain by disrupting   has been used ever since to
lower back pain by Dr. Alan           the signals sent through the pain    relieve pain. And, now in the 21st
Kahn, M.D. and Dr. Hans               circuitry and by simultaneously      century scientists have again
Ersgaard, M.D., 87 percent of         activating the pain relief           developed another “breakthrough”
the patients responded well           mechanisms which exist in the        medical device- the drug-free
within the 10-day treatment           spinal cord. Dr. Beitz also          ActiveWorks® back pain relief
period with 73 percent of the         speculates that the NanoTech™        system.
patients experiencing total relief    Pain Pad somehow activates a             For more information on the
from lower back pain with the         different type of new neuron.        Ferris Pharmaceuticals
Ferris Pharmaceuticals                    Evidence presented by Dr.        ActiveWorks® back pain relief
NanoTech™ back pain relief            Brian Cole suggests that this pain   system for your chronic or acute
system.                               relief effect is accomplished by     pain or the other PolyMem®
    In an earlier study that          the selective absorption of          family of products, call toll-free
examined 47 participants suffering    very small (nano) quantities of      1-800-POLYMEM. Or, please
from chronic back pain, 72            sodium ions from the skin into       visit and speak with Elizabeth
percent of the participants           the NanoTech™ Pain Pad. The          LaLonde, a Registered Nurse with
treated with the ActiveWorks™         absorption of the sodium disrupts    over 25 years experience
back pain relief system obtained      the pain signal transmission so      specializing in patient pain,
relief and 90 percent of those        the pain receptor and                ostomy and wound care.
discontinued the use of their back    transmission systems are not         Elizabeth LaLonde is at the
pain medications. Of those who        activated, therefore the pain is     Medical Shoppe of Marco at the
received back pain relief, 27         “short-circuited.”                   Shops of Marco, 135 S. Barfield
percent had pain relief within four       According to Dr. Beitz, the      Drive, Marco Island. Hours are
hours or less of beginning to use     NanoTech™ pain relief system         9 a.m. to 5 p.m. Monday
the product. And more than two        uses spinal cord pathways similar    through Friday and Saturday
weeks after completing treatment,     to those seen with acupuncture.      10:00am to 2:00 p.m. Her office
the participants in the study         However, the NanoTech™ pain          can be reached at 239-389-4890.
reported that the ActiveWorks®        relief system provides added
provided significant lasting relief   advantages over acupuncture.                Dr. Roger Sessions is a Staff
when compared to their regular        First, it eliminates the use of          Physician at the Baylor Regional
treatment methods.                    needles in order to get the            Medical Center, Grapevine, Texas;
     NanoTech™ Pain Pads              beneficial effects, and second,        Diplomat of the American College
contain no drugs or harmful           the treatment can be delivered                  of Emergency Physicians;
chemicals. Over 100 million           continuously rather than just               Asstistant Director of Baylor
tons (of 4x4 inch pads of the         during the limited time that a           Regional EMS; Director of the
material) have been used in           person is able to be treated at            North Texas Medical Center;
healthcare facilities worldwide       the office, which speeds up the          and, a member of the American
over the past 12 years without a      healing process.                              College of Sports Medicine.

                                                      - 19 -
 The Marco Island Coast Guard Auxiliary
                                     by Randy Weimer FSO - PA
    The United States Coast           most popular course, Boating         These identification cards will
Guard Auxiliary was created by        Skills and Seamanship. All of our    be processed at no charge upon
an act of Congress on June 23,        classes are taught by certified      completing the courses offered by
1939. It was originally called the    Coast Guard instructors. These       the Marco Island Coast Guard
Coast Guard Reserve. The              programs are designed for            Auxiliary.
name was changed to the Coast         individuals who either own a             Free Vessel Safety Checks
Guard Auxiliary on Feb 19,            boat or are thinking of buying a     (inspections) are available from
1941. The Coast Guard and             boat. They provide valuable          certified Coast Guard Auxiliary
Auxiliary were at first organized     information to help make us all      members here on Marco Island.
under the direction of the            safe boaters. Other courses          They can be done right at your
Department of Transportation.         include GPS, Advanced Coastal        dock. The goal of these
However, today both are               Navigation, Weather, How to          inspections is to assure that you
administered by the Department        Read a Chart, Hurricanes and         have all of the required safety
of Homeland Security.                 Your Boat, and many water            equipment on your boat. The
    The Marco Auxiliary is            safety programs aimed at school      Auxiliary will work with you until
entering its 38th year of service     age children.                        your boat meets all of the Coast
to Marco Island and the Ten              Unfortunately, Florida leads      Guard safety requirements. You
Thousand Islands. Fifty years         the nation in boating fatalities,    will then be awarded a Vessel
ago the Naples Auxiliary was the      injuries and accidents. Courses      Safety Check Certificate to affix
only Coast Guard Auxiliary in         such as the ones we offer are a      to your boat.
the area. Then, as the area grew,     key to a safer boating public.           In addition to an elected
Naples started the Marco              We encourage all boaters to          Flotilla Commander and Vice
Auxiliary. Today the Marco            expand their knowledge base by       Commander, we have twelve
Island Auxiliary is assigned an       looking into the various Auxiliary   appointed Staff Officers in our
AOR (area of responsibility)          courses that are offered. Many       Flotilla that have separate
that is 220 square miles and          insurance companies give             assigned responsibilities, including
takes in the Ten Thousand             discounts on boat insurance if       a certified Marine Safety Officer
Islands. The Auxiliary on Marco       you successfully complete these      who responds to water pollution
Island has over 60 members, 18        classes and present them with        investigations.
authorized vessels 18 ft to 44        the appropriate certificates.            Although our vessel facilities
feet, 1 base radio station and        Current Florida Law requires that    (boats) are privately owned,
seven home based land radio           anyone born after September 30,      they must be inspected to meet
stations. The auxiliary is not a      1980, and operating a vessel         USCG standards. The required
law enforcement agency but            powered by a 10 horsepower or        equipment on board costs the
serves as a support team for          more motor, must pass an             member an average of twelve
and operates under orders from,       approved boater safety education     hundred dollars. The coxswains
the Coast Guard. All of our           course. They must also have in       and crews on all of our boats
members are required to undergo       their possession, photographic       must be certified as well as
strict Homeland Security              identification and a boater          undergo annual requalifications.
clearance checks.                     safety identification card issued    A coxswain undergoes 4 months
    We offer a wide variety of        by the Florida Fish and Wildlife     of training and then must be
boating programs including our        Conservation Commission.             tested on the water in the
                                                   - 20 -
daytime and nighttime by a QE           For information on boating        at which you can still maintain
(Qualified Coast Guard Examiner).    classes, vessel inspections,         control).
Crewmembers undergo similar          seminars and availability of         From this point up to within
training and testing.                speakers please call the station     300 feet either side of the
    Anytime an auxiliary vessel      at 394-5911 and leave a message.     Jolley Bridge- 30 miles per hour
is on the water flying the Patrol    If you would like information        within the channel.
Ensign and the Coast Guard           on joining this fine family of       Within 300 feet either side of
Patrol Sign, that vessel is under    volunteers and have eight hours      the Jolley Bridge- Slow speed
US Coast Guard orders. It is         a month to give, please call also.   (minimum wake and boat in an
assigned as Coast Guard Property,    Information on the Auxiliary         off-plane position, riding level in
as is the radio equipment            membership requirements, class       the water with the bow down).
supporting it. The Marco             dates, and course descriptions is    Outside of the Marco River
Auxiliary is designated as           also available at our web site:      channel- Unless marked other-
Flotilla 5 in Division 9 and is      www.uscgaux.org/~0700905.            wise, the speed limit is slow
under the command of the                Special Note on Boating           speed.
United States Coast Guard                      Speed Zones                Marco Island bays and
Seventh District. Flotilla 5 has        We get many questions             canals- Idle speed. This includes
supported the Coast Guard with       about local boating speed zones.     all bays* and canals on Marco
well over twenty thousand            Therefore, in conjunction with       Island. Also included in this
hours in 2004 including many         local authorities, the following     speed limit is the area along the
search & rescue missions and         information was prepared to          seawalls east of the Jolley Bridge.
boater distress calls.               briefly cover some examples of       Special speed zones- areas
    The importance of the            common boating speed zones           such as Rookery Bay and some
Auxiliary became very evident        found around Marco Island.           areas around Goodland are marked
after 9/11 when it was called           Boat speed limits are posted      with 20 miles per hour signs.
upon to fill vacant USCG             throughout our waterways, just            * Barfield Bay speed limits
positions in stations that had       be alert for the white signs and     are under evaluation by the City
deployed staff to meet the           markers while on the water.          of Marco Island.
demands of national security.        Remember that PWC’s (per-                 Boating authorities can
Today our trained members are        sonal watercraft) are class A        suspend speed limits at any time
utilized to staff positions at the   motorboats and must follow the       if unsafe conditions exist.
Fort Myers Coast Guard Station.      same rules as other boats. Boat      Monitor channel 16 on your
    Our Auxiliary station on         speed limits do not give anyone      VHF radio at all times for safety
Marco Island (located at             the option to operate in an          alerts and emergencies.
Caxambas Park) has received          unsafe manner. There is no                Please remember, safety is everyone’s
many awards from the USCG.           “right-of-way” on the water!         responsibility. We cannot possibly cover
Its accomplishments include          Some speed zone examples are         all of the specific speed zones on Marco;
leadership in establishing new       shown below.                         so we have included some here for
seminars on boating safety,          On the Gulf- Boats must be           clarification purposes. Water speed zones
installing updated radio             operated in a safe manner, at a      are clearly marked! It is the boater’s
communications, providing            safe speed.                          responsibility to operate his/her
docking for emergency re-            From the entrance of Capri           watercraft in a safe manner; this includes
sponse vessels and for com-          Pass to speed marker just            operation at no more than the posted
pleting a 24-month re-charting       past the Snook Inn- Idle speed       and safe speed. Courtesy goes a long way
of the Ten Thousand Island.          (no wake and a minimum speed         on the water, if in doubt, give-way.
                                                     - 21 -
                   United Way of Collier County
                                                      by Shannon Anderson
    Isn’t it great to have Marco                     has been a generous supporter,      The Child Protection Team
Island as your place in the sun?                     helping to pay for supervised,      (CPT) is one such agency.
Whether you are here year                            after-school care. The United       Their mission is to provide
‘round, a few months or few                          Way also helps to fund Marco’s      medical and social diagnosis of
weeks, very few will argue that                      scouting activities, with           child abuse and neglect. This
Marco has the best of so much                        approximately 115 children          past year, CPT was involved
for so many. It’s easy to                            benefiting.                         with 64 children from Marco.
understand why the residents are                         Marco residents can count          The list of agencies that
justly proud of their community.                     on all United Way-funded            serve Marco residents continues:
    Residents and civic groups                       agencies including those off the    Sunrise/Tech of Collier County,
seek to improve life on the                          island to give support in times     providing the developmentally
island for all residents through                     of crisis. Unfortunately, Marco     disabled opportunities to live
hard work and generosity and                         Island shares some of the same      productively in the community;
donations to the United Way                          serious issues that exist           Step by Step, delivering
assist with that task.                               throughout Collier County.          intervention programs for
    From the beginning of the                        Project Help provides 24 hour-a-    preschoolers with development
Marco YMCA’s existence, the                          day counseling for survivors of     delays; the Care Club, caring for
United Way of Collier County                         rape, crimes and suicide and        Alzheimer’s sufferers in Collier’s
                                                     offers support groups as well.      only licensed adult day program.
                                                     Typically, 60 individuals from      These are a few of the 29 local
                  Offering....
            Daily Offshore Fishing                   Marco are served by Project         agencies that are supported by
             Back Country Fishing                    Help annually.                      the United Way.
              Island Shelling and                        Some agencies hope the             Although many businesses
        also taking reservations for the             need for their services declines.   support the United Way
                                                                                         generously, Collier County
      MARCO ISLAND                                                                       doesn’t have as many large
        PRINCESS                                           MICA’s Architectural          businesses from which to draw
    149 Passenger Luxury Cruise Vessel                     Review Committee              support as other communities do.
     * Air Conditioned Salon * Open-Air Upper Deck
              * Quiet, Smooth Operation                 (ARC) meets the second           In addition, local government does
        * Professional Crew * Full Service Bar            and fourth Monday of           not fund charitable organizations.
          WEDDINGS, ANNIVERSARIES,
                                                            each month and is            The financial support of the
         FAMILY REUNIONS, BIRTHDAYS,                                                     residents of Marco Island and
       CORPORATE FUNCTIONS AND MUCH MORE!                 looking for qualified
                                                                                         the rest of Collier County are
                    FEATURING                            individuals to serve on
            our World Famous                                                             greatly needed for the United
       Hors d’oeuvre Sunset Cruise,                           the committee.             Way to meet its goal of $2.5
          Sunset Dinner Cruise                                                           million. Thank you for your
       and our Luncheon-eco Cruise                         The ARC reviews
               Marco’s Newest                            construction plans for          support.
         Waterfront Dining Experience                                                       Please contact the United
                                                         compliance w i t h t h e
                                                                                         Way for more information at
 FOR INFORMATION & RESERVATIONS CALL 642-5415              deed restrictions.            239-261-7112. And finally, you
         www.sunshinetoursmarcoisland.com
                                                         If you are interested in        may lend your support to the
                                                         obtaining further infor-        United Way by sending your
                                                                                         tax-deductible gift to:
                                                         mation, please call the
                                                                                         The United Way of Collier County
                                                             MICA office at
                                                                                         848 1st Avenue N. Ste. 240
                                                              239-642-7778.
                                                                                         Naples, FL 34102
                                                                  - 22 -
- 23 -
   Nonprofit Collier County Animal
 League, Inc. Formed to Save Lives of
            Local Animals
                  Foster homes, volunteers and donations urgently needed
     Ronnye Randall, a health care                                           treatments needed out of her
industry consultant, couldn’t                                                own pocket. The two began
stand the idea of the stray dog                                              working together toward their
she had turned in to the county                                              common goal and, over the last
shelter being put down, so she                                               seven months, working with
decided to do something about it.                                            other individuals and rescue
     In May of 2004, Randall                                                 organizations have found homes
found “Fate,” as the little black lab                                        for over 150 animals.
came to be called, while out            Honeybear is one of the animals at      As Randall and Morris met
walking her own three dogs. He          the Collier County Animal League,    more and more animal lovers
had no identification tags, so she          Inc. looking for a new home      who wanted to get involved
took him to the county shelter.                                              with their efforts, they decided
     “He didn’t look like he had        was pretty stressful, as I knew if   to organize the process, and
been dumped or abused, so I             I didn’t find him a home quickly,    recently formed the nonprofit
assumed he had got out in the           he would be euthanized.”             organization Collier County
storms the night before and that            Fortunately, this story had a    Animal League, Inc. (CCAL).
his owners would quickly pick           happy ending, as a wonderfully          “We’ve just filed our incor-
him up,” said Randall.                  generous family agreed to adopt      poration papers and are waiting
     Unfortunately, no one claimed      Fate and treat his medical           to get our exempt status so that
little Fate, and, because he had an     conditions at their own expense.     we can accept tax deductible
injury to one of his front legs             After experiencing the           donations,” said Randall.
and also had Heartworm, a fatal         satisfaction of finding a home       “Then we can really start
parasitic condition if left un-         for Fate, Randall began to           helping some of the more
treated, the shelter prepared to        research whether it would be         desperate cases that need
euthanize him, as they do not           possible to find homes for other     expensive medical treatment,”
have the resources to treat or          animals in the county shelter        she continued.
care for dogs in such condition.        that would otherwise be                 CCAL’s stated mission is to
     The thought of this friendly,      euthanized. She quickly met          end euthanasia in Collier County
happy young pup being put down          Tammy Morris, owner of               by reducing the population of
was too much for Randall to             Amigo’s Restaurant on Marco          homeless and unwanted animals
bear, so she set about trying to        Island, who had been quietly         through low cost and no cost
find his owners or, if that failed,     rescuing dogs and cats from          spay/neuter programs and
to find him a suitable home.            shelter for over 13 years. Morris    community education; and by
     “I put up flyers in all the        had been using her network of        helping local animal shelters
nearby shops and posted them            friends, family and customers to     and rescue organizations with
in the local residential                find the animals permanent           any needs that are not covered
communities,” she said. “But it         homes, paying for any medical        by their operating budgets.
                                                     - 24 -

				
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