Florida – Machinery and Equipment Sales Tax Exemption

SALT Report 3883 – The sales tax exemption for machinery and equipment in Florida has become permanent for all machinery and equipment except mixer drums. This exemption was previously scheduled to expire on April 30, 2017. The exemption for mixer drums affixed to mixer trucks used in Florida to mix, agitate, and transport freshly mixed concrete is still scheduled to expire on April 30, 2017.

Effective July 1, 2016, the exemption for machinery and equipment has also been expanded to include:

  • Recycling industries classified under code 423930 of the North American Industry Classification System (NAICS) (2007). For more information on NAICS industry codes visit: http://www.census.gov/cgi-bin/sssd/naics/naicsrch
  • Postharvest machinery and equipment purchased by an eligible postharvest activity business to be used at a fixed location in Florida for postharvest activities. Included within the exemption are all labor charges for the repair of such machinery and equipment, as well as, parts and materials used in the repair and incorporated into the machinery and equipment.
    • A postharvest activity business is a business whose primary business activity, at the location where the postharvest machinery and equipment is located, is classified under code 115114 of the NAICS (2007).
    • Postharvest activities are defined as services performed on crops after harvest with the intent of preparing the crop for market or further processing. These activities include crop cleaning, sun drying, shelling, fumigating, curing, sorting, grading, packing, and cooling.

Purchasers of qualifying machinery and equipment should continue to provide the seller with a signed certificate certifying the purchaser’s entitlement to the exemption. This certificate will relieve the seller of any potential tax liability on the sale.

For further Information:

http://floridarevenue.com/dor/tips/tip16a01-07.html