SALT Report 2027 – In an effort to attract manufacturing businesses and jobs to Florida, Governor Rick Scott announced that he plans to push legislation that will eliminate Florida sales and use taxes on purchases of certain manufacturing equipment.
The Governor said, “Florida’s current policy puts our state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions. In order to build up our manufacturing jobs in Florida, we must remove these barriers to investment. We want more manufacturers to move to Florida, and our existing manufacturing companies to buy the equipment they need to grow and create more jobs to support Florida families.”
Currently, the state offers an exemption for industrial machinery and equipment purchased for use in an expanding manufacturing facility or plant that manufactures, processes, compounds, or produces for sale items of tangible personal property in Florida. The Governor proposes to eliminate the exemption’s requirement that a taxpayer show that the items purchased will be used to increase the productive output of the business by no less than 5%. The 5% rate was recently decreased from 10% on January 1, 2013.
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