Florida: New Law Provides for Temporary Expansion of Manufacturing Exemption

Florida: New Law Provides for Temporary Expansion of Manufacturing Exemption

Governor signed HB into law on May 17, 2013. The new law, Fla. Stat. § 212.08(7)(kkk) which expands Florida’s sales/use tax exemption for manufacturers is effective April 30, 2014. Under current law, only new or expanding businesses are eligible for this manufacturing exemption.

Under this new exemption, industrial machinery and equipment is exempt from state sales/use tax when purchased by eligible manufacturing businesses for use at a fixed location within Florida for the manufacture, processing, compounding, or production of items of tangible personal property for sale.

An eligible manufacturing business under these new provisions is defined as a business whose primary business activity (activity representing greater than 50% of all activities) at the location where the industrial machinery and equipment is located is within the industries classified under 2007 NAICS codes 31, 32, and 33. This new temporary sales/use tax manufacturing exemption is part of a broad economic development accountability bill and is set to expire April 30, 2017.

Please contact me if you have any questions on expanded exemption or if you are interested in learning about economic development accountability bill. My telephone number is 305.960.1202 and my email address is klake@bpbcpa.com.