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Florida Steps Closer to Sales Tax Exemption for Manufacturing Equipment


 Florida manufacturing sales tax exemption still has a way to go to become law.

UPDATE, 5.21.13: HB 391 and SB 518 died on the calendar. However, HB 7007 was passed by both the Senate and the House and signed into law as Chapter 2013-39. The act establishing the Economic Development Programs Evaluation , which took effect May 17, 2013, grants an exemption from sales tax for “certain machinery and equipment.” The exemptions take effect on April 30, 2014. See 212.08, Section 7 (Miscellaneous Exemptions) for a complete description of the exempt machinery and equipment.

The governor of Florida wants lawmakers to provide an exemption from sales tax for manufacturing equipment. Doing so, he argues, would “level the playing field to compete for manufacturing jobs.” Governor Scott (R) may get his wish. HB 391, which “revises [the] sales tax exemption for certain business purchases of industrial machinery & equipment” was approved by the House Economic Development and Tourism Subcommittee on April 10, and is now pending review by the Economic Affairs Committee.

A manufacturing sales tax exemption also has support in the Senate. Earlier this month, the Senate Commerce and Tourism Committee passed SB 518, an economic business incentives bill that includes a sales tax exemption for “certain purchases of industrial machinery and equipment.”

Politics being politics, nothing is certain. The Florida Current notes that “Senate leaders… want to tie any new tax breaks for manufacturers to the amount of jobs created.” According to Sherry Reeves, executive director of the Manufacturer’s Association of Central Florida, an exemption does “create a level playing field for Florida manufacturers by stimulating investments that can help add new jobs.”

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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.