Florida – Guidance Regarding the Exemption for Industrial Machinery and Equipment

SALT Report 2566 – The Florida Department of Revenue issued guidance regarding the sales and use tax exemption for purchases of industrial machinery and equipment used at a fixed location in Florida by a qualified manufacturing business.

The exemption is available to eligible businesses that manufacture, process, compound, or produce tangible personal property for sale. The exemption also applies to parts and accessories for qualified industrial machinery and equipment so long as they are purchased before the date the machinery and equipment are placed in to service.

For purposes of the exemption, eligible manufacturing businesses are defined as any business whose primary business activity is included in the 2007 version of the manufacturing NAICS codes 31, 32, or 33. Examples of qualified manufacturing businesses include, but are not limited to, food, apparel, wood, paper, printing, chemical, pharmaceutical, plastic, rubber, metal, transportation, and furniture.

Additionally, if a vendor obtains a signed certificate from the purchaser certifying that they are entitled to the exemption, the signed certificate will relieve the vendor of any potential tax liabilities for non-qualifying purchases. The Department has created a suggested certificate that the vendor can use to document the exempt sales transaction.

The exemption is effective April 30, 2014 and qualified purchases made after the effective date are eligible for a refund of any tax paid under the refund provisions in section 215.26, Florida Statutes and Rule 12A-1.014 F.A.C.

For Further Information

Florida Department of Revenue – Tax Information Publication, No. 13A01-06