Florida Governor Wants Tax Exemption for Manufacturing Equipment
- Mar 6, 2013 | Gail Cole
Florida Governor Rick Scott (R) gave his State of the State Address yesterday. In it, he noted the progress Florida has made during the past two years: the state debt has decreased, unemployment is down, and there is “a projected budget surplus for the first time in six years.” In sum, he said, “it’s working.”
In order to keep it working, Governor Scott wants to do the following:
- Remove the sales tax on manufacturing equipment; and
- Invest in education by giving teachers “a well-deserved pay raise.”
He notes that “now is not the time to turn back to the legacy of taxing and borrowing that crippled the economy we inherited two years ago.” Rather, he proposes job creation and economic growth.
The governor contends that a sales tax exemption for manufacturing equipment will help “level the playing field to compete for manufacturing jobs.” He notes that “Florida is one of only a few states with [a manufacturing equipment] tax,” and that the Sunshine State “lag[s] behind the nation in per capita manufacturing jobs.” Coincidence? He thinks not.
Gov. Scott says, “As long as even one Florida family needs a job, our work is not done. That is why we are committed to removing the sales tax on manufacturing equipment.”
Florida lawmakers are currently considering two bills regarding the manufacturing sales tax exemption:
SB 518, sponsored by Senator Dorothy Hukill (R), seeks to revise” the sales tax exemption from the sales tax for certain business purchases of industrial machinery and equipment and spaceport activities… .”
HB 391, sponsored by Rep. MaryLynn Magar (R), seeks to revise “limitations, conditions, criteria, and definitions relating to exempting certain business purchases of industrial machinery and equipment from sales tax; exempts from sales tax industrial machinery purchased for exclusive use in spaceport activities or use in business that manufacture, process, compound, or produce for sales items of tangible personal property at fixed locations….”
The Manufacturers Association of Florida supports both of these bills.
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