Governor Rick Scott has announced that he will seek legislation eliminating Florida and local sales and use taxes on machinery and equipment used in manufacturing. Currently tax is imposed unless a specific exemption applies. Florida has an exemption for new and expanded businesses that acquire machinery and equipment used to manufacture a product for sale, but the exemption is limited by requirements to demonstrate certain productivity gains. The 2012 Florida Legislature reduced those productivity thresholds from 10% to 5% effective January 1, 2013. Scott’s 2013 legislative proposal would eliminate the productivity thresholds entirely. Enterprise Florida, in a recently completed Economic Development Competitiveness Study, identified the need for additional incentives to assist the manufacturing sector with capital expenditures. Many states already exempt industrial machinery and equipment from excise taxes.
For additional information contact Victoria L. Weber.