November 30, 2004
Source: Governor's Office
Announcing support of regular session legislation to create a sales tax exemption for all machinery and equipment purchased for use predominantly in research and development activities.
Principles of these Actions
Research and Development Activities in Florida:
Generally, Florida currently levies a 6% sales tax on machinery and equipment used primarily for research and development activities, but allows the following limited exemptions:
Because 24 other states either do not tax research and development equipment or do so at reduced tax rates, Florida’s current tax poses a distinct competitive disadvantage for Florida to attract new R&D activity.
Proposal: Eliminate the sales tax on machinery and equipment used predominantly for research and development activities
The annual cost savings to businesses conducting research and development activities in Florida are estimated to be $33.7 million. This reflects a reduction in both state and local sales taxes.
The proposal also contemplates allowing a recipient of the exemption to enter into an agreement with one or more state universities or community colleges to receive up to 100% of the tax savings, to be matched on a one-to-one basis, in pursuit of research and development projects.