SB 98- Relating to the Exemption from the Sales and Use Tax for Certain Machinery and Equipment
On Monday, January 11th, SB 98, relating to the Exemption from the Sales and Use Tax for Certain Machinery and Equipment by Senator Dorothy Hukill (R-Port Orange) was heard in the Senate Commerce and Tourism Committee and passed with a vote of 6 yeas to 1 nay. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this bill.
Since April 30, 2014, the state has provided an exemption for certain manufacturing equipment from the 6% sales and use tax that is set to expire on April 30, 2017. To qualify for this exemption machinery or equipment must be used at a fixed location in the state and eligible businesses include only those classified in the North American Industry Classification System (NAICS) under codes 31, 32, or 33. Manufacturing establishments classified under these codes include food, apparel, wood, paper, printing, chemical, pharmaceutical, plastic, rubber, metal, transportation, and furniture manufacturing. SB 98 aims to remove the 2017 expiration date and make the exemption permanent.
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.
SB 98 will now head to the Senate Finance and Tax Committee,
Below is a statement from our President and CEO Tom Feeney released on Monday, January 11th:
AIF Statement on Passage of SB 98 in Senate Committee on Commerce & Tourism Committee
Tallahassee, Fla. – The Associated Industries of Florida (AIF) today released the following statement attributed to its President & CEO Tom Feeney regarding the passage of Senate Bill 98 in the Committee on Commerce and Tourism.
“As one of our top priorities this legislative session, we applaud the Commerce and Tourism Committee for passing Senate Bill 98, which revolves around Governor Scott’s $79.3 billion budget proposal for FY 2016-17. The budget, which includes $1 billion in tax cuts, will have a positive impact on Florida’s employees and employers by accelerating job growth, and will help make Florida the top destination for businesses.
“As the Florida affiliate for the National Association of Manufacturers, AIF is proud to work on behalf of Floridians to foster a pro-business environment by joining the Governor in calling for the permanent elimination of income tax on manufacturing and retail businesses, permanently eliminating sales tax on manufacturing machinery and equipment, and calling for a reduction in business rent and commercial lease tax.
“As the bill heads to Finance and Tax Committee and is then considered by the full Appropriations Committee, we look forward to continuing to work with the Legislature to adopt a budget that includes a pro-growth, pro-jobs tax cut agenda. And, as the voice of Florida business, we will continue to work toward increased job growth and economic prosperity to create a business-friendly environment in the Sunshine State.”
For more information on AIF, please visit AIF.com and follow @VoiceofFLBiz.
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SB 802- Relating to Use Tax for Asphalt
On Thursday, January 14th, SB 802, relating to Use Tax for Asphalt, sponsored by Senator Lizbeth Benacquisto (R-Fort Myers) was heard in the Senate Transportation Committee and unanimously passed with 6 yeas and 0 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this bill.
SB 802 will phase out the tax on manufactured asphalt used for any federal, state, or local government public works project, which under current law this tax is reduced by 40 percent.
SB 802 will further reduce the tax on manufactured asphalt by 60 percent beginning July 1, 2016; by 80 percent beginning July 1, 2017; and by 100 percent beginning July 1, 2018.
The next committee stop for this SB 802 will be in the Senate Finance and Tax Committee.
AIF supports phasing out tax on road projects used for federal, state, or local government work.
