TALLAHASSEE - With the looming sunset of the sales tax exemption on manufacturing equipment threatening to harm Florida’s economy, Florida TaxWatch testified before the Legislature to extend the tax exemption. The exemption on manufacturing equipment allows manufacturers to reinvest the money they would have given to the state back into their business. This promotes growth in the manufacturing industry and creates high salary jobs.
In order to remain competitive, Florida needs to ensure that this exemption remains in place. The state lags behind some of its peer southern states as its per capita manufacturing expenditures are lowest among the 12 southern states, and total less than one-third of average expenditures. Florida TaxWatch warns that by allowing the exemption to expire, the state’s manufacturing industry would be put at a severe disadvantage to other southern states, reversing the gains made under the exemption and leading to negative economic repercussions.
Florida TaxWatch has long recommended growing Florida’s manufacturing sector and extending the exemption on manufacturing equipment. Senator Dorothy Hukill, noting the impact of manufacturing for Florida’s economy, filed Senate Bill 98 in August. The bill would eliminate the expiration of the manufacturing sales tax exemption, allowing manufacturing companies to retain more money for their business.
For the full Florida TaxWatch report, click here.