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Florida Governor Wants Tax Exemption for Manufacturing Equipment

  • Mar 6, 2013 | Gail Cole

 Manufacturing Equipment at Florida Spaceports Would Be Exempt If Governor Scott Has His Way.

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.

How does your business handle exemption certificates?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.