SB 98- Relating to the Exemption from the Sales and Use Tax for Certain Machinery and Equipment
On Monday, January 25th, 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 before the Senate Finance and Tax Committee and unanimously passed with 6 yeas and 0 nays. AIF 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.
SB 98 will now head to the Senate floor for consideration.
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.
Below is a statement from our President and CEO, Tom Feeney, released Monday, January 25th, regarding the passage of SB 98:
AIF Statement on Manufacturing Equipment &
Machinery Tax Exemption Advancing in the Senate
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, relating to the exemption from the sales and use tax for certain machinery and equipment, by the Senate Finance and Tax Committee.
“As Florida’s leader in manufacturing and Florida’s affiliate for the National Association of Manufacturers, AIF applauds the Senate Finance and Tax Committee today for passing Senate Bill 98. AIF supports permanently eliminating the sales tax imposed on the purchase of manufacturing equipment and machinery.
“This tax exemption, which is part of Governor Scott’s $79.3 billion budget proposal for FY 2016-17, is good for Florida’s employees and employers, and would help advance Florida’s manufacturing footprint, diversify the economy and create jobs.
“With SB 98 now heading to its last committee stop in the Senate, the full Appropriations Committee, we look forward to working with lawmakers to advance this pro-business tax cut that will lead to growing the manufacturing sector in the Sunshine State.”
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