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Miami Mayor Francis Suarez Trying To Lure California Companies, Workers To Magic City

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Miami Mayor Francis Suarez is making a pitch for California companies to relocate to South Florida. Read more: https://cbsloc.al/3qEjafR

Video Transcript

KEITH JONES: All knew at 6:00 now, California companies are being pitched to relocate to Florida. And Miami Mayor Francis Suarez, he's making this a crusade. CBS 4's Hank Tester reports it's more than just better a year-round whether. There's a serious dollars and cents consideration.

HANK TESTER: Come on down. Miami open for business. Mayor Francis Suarez promoting the Magic City as a new national tech center. A sunbathed haven for startups and investment firms, hedge funds. But who's interested? Apparently a lot of folks from California. And why?

STACI PARRISH: It has to be the lower taxes. It has to be. I mean, California weather is good. Florida weather is better. But the tax rate for a corporation is half in Florida than it is in California. California is over 8%, where Florida is over 4%. That's a huge tax savings.

HANK TESTER: That's why the Walt Disney organization has floated the idea of moving some of their operations out of the Golden State. Where to? Central Florida.

STACI PARRISH: In Florida, we don't have a state income tax. In California, that tax rate is up to over 12%. And it's scheduled to go higher.

HANK TESTER: Staci Parrish is the managing director of tax and accounting at Plantation-based Fisk & Company. When clients considering the cross-country move see the tax numbers?

STACI PARRISH: When we start laying out the tax savings, they really start to think about it.

HANK TESTER: The California exodus is for individuals, that's been going on for some time. Housing costs, state income tax, crime. The California dream gone sour. Nearly 170,000 people left LA and San Francisco in 2020.

Some show up here. When compared to California, the cost of living and housing more reasonable than what they're used to. And there is that 13% California state income tax.

STACI PARRISH: By moving your employees to Florida, they're getting a raise by not having to pay a state income tax.

HANK TESTER: Miami is known as the Wall Street of Latin America. And these California high-tech companies, well, they like the location of Miami because it's close to the emerging markets in Latin America. I'm Hank Tester, CBS 4 News.