FTC5- Relating to Taxation
On Tuesday, March 31st, FTC5, relating to Taxation by the House Finance & Tax Committee, passed through the House Finance & Tax Committee with 16 yeas and 1 nay.

FTC5 is a tax package bill that will encompass a wide variety of issues, from tax exemptions including agricultural items; like feed for aquatic organisms, irrigation equipment, costs of maintenance and repairs of irrigation and power farm equipment, stakes, and certain trailers, the reduction of taxes on state communications services tax (CST), to extending dates for tax credit in certain community contribution donations.

After the committee hearing, FTC5 has since been filed as HB 7141. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this bill.

AIF supports tax cuts for Florida’s consumers and businesses.  

SB 980- Relating to Defense Contracting
On Monday, March 30th, SB 980, relating to Defense Contracting, by Senator Darren Soto (D-Kissimmee) unanimously passed through the Senate Finance and Tax Committee with 7 yeas and 0 nays.

SB 980 authorizes a defense industry prime contractor to reduce its net income that is subject to tax in Florida by an amount equal to four percent of payments made under certain subcontracts awarded to Florida small business subcontractors. Each prime contractor is limited to $125 million in subcontract awards per calendar year and the entire program is limited to $1.25 billion in subcontract awards per calendar year. The Revenue Estimating Conference has not reviewed the impact of the bill. Staff estimates that the bill will reduce General Revenue receipts by $2.25 million annually. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this bill.

AIF supports the reduction of taxes for defense contractors in the state of Florida and growing this important industry in our state.

SB 544- Relating to Exemption from the Sales and Use Tax for Certain Machinery and Equipment
On Monday, March 30th, SB 544, relating to Exemption from the Sales and Use Tax for Certain Machinery and Equipment, by Senator Dorothy Hukill (R-Port Orange) unanimously passed through the Senate Finance and Tax Committee  with 8 yeas and 0 nays.

SB 544 removes the expiration date for the exemption from sales and use tax for certain industrial machinery and equipment. The current exemption for industrial machinery and equipment continues through April 2017. Therefore, the bill does not have a cash impact in Fiscal Years 2015-2016 or 2016-2017. The Revenue Estimating Conference has determined that the bill will reduce General Revenue receipts by $122.4 million in Fiscal Year 2017-2018, with a $122.4 million recurring impact. The bill will reduce local government revenue by $27.4 million in Fiscal Year 2017-2018, with a $27.4 million recurring impact.

SB 544 will now head to its last stop in the Senate Appropriations Committee. AIF’s Senior Vice President, Brewster Bevis, stood in support of this bill.

AIF supports the removal of the three year sunset on the complete elimination of sales tax imposed on the purchase of manufacturing equipment and machinery. Doing so would lead to expanded manufacturing here in Florida.