On May 1, 2013 the Florida Legislature passed a new sales tax exemption law for manufacturers purchasing machinery and equipment that becomes effective April 2014 and will sunset in April 2017.
Start planning your purchases, the political drama is over!!!!
The legislation, amended to HB 7007, provides for a three-year sales tax exemption for industrial machinery and manufacturing equipment purchased by eligible manufacturing businesses that is used at a fixed location within Florida for the manufacture, processing, compounding, or production of items of tangible personal property for sale. “Eligible manufacturing business” would be defined, for these purposes, as any business whose primary business activity at the location where the industrial machinery and equipment is located is within the industries classified under NAICS codes 31, 32, and 33. There would be no productivity showing required during that period. The purchaser would have to provide an affidavit of eligibility to the seller at the time of purchase. It expands the machinery and equipment exemption to all manufacturing businesses in the state, not just those that will be increasing capacity or employment. In short, it exempts manufacturers from paying the 6% state sales tax on new equipment purchases.
Should you have any questions about how your overall tax planning will be affected by this legislation, please contact Teri Kaye, CPA, Partner at 561-367-1040, or firstname.lastname@example.org. Teri is a Board Member and the Treasurer of the South Florida Manufacturer’s Association.