Taxation & Budget

Online Travel Companies | E-Fairness | Unemployment Compensation Taxes
Sales Tax Exemption on Manufacturing Machinery and Equipment | Session Priorities Index

Print Section

Sales Tax Exemption on Manufacturing Machinery and Equipment

AIF SUPPORTS the complete elimination of sales tax imposed on the purchase of manufacturing equipment and machinery. 

Current Florida law provides a sales tax exemption on industrial machinery and equipment purchased for use in expanding manufacturing facilities or plants only if the manufacturer can show a growth in productive output of at least 10 percent. During periods of economic downturn or post-natural disaster, when a manufacturer is less likely to achieve a 10 percent or more growth in productivity, the statute actually creates a disincentive for capital investment, which is necessary to stimulate growth. Providing viable incentives to manufacturers to make capital investments in plant facilities during the economic downturn and following natural disasters will mitigate job loss and encourage continued production.