TALLAHASSEE – Senator Dorothy L. Hukill’s (R-Port Orange), Senate Bill 98, Sales Tax Exemption for Certain Manufacturing Machinery and Equipment passed the Commerce and Tourism Committee today with strong support.  The legislation continues to stimulate the expansion of businesses and job growth throughout the state by allowing the temporary sales tax exemption, originally passed in 2013, to become a permanent sales tax exemption for manufacturers to purchase machinery and equipment.

The legislation will guarantee that Florida continues to grow as a manufacturing-friendly state, diversify the economy, produce high-wage jobs, and encourage capital investment in our state.  Manufacturing accounts for over 18,600 employers/manufacturers and more than 321,000 manufacturing employees that earn higher than average annual wages. These manufacturers produce goods in a variety of industries including food and beverages, computer and electronic components, medical equipment, boats, pharmaceuticals, and many more products we use every day.

According to Florida TaxWatch:  “Since the tax exemption went into effect, taxable sales within the manufacturing industry have averaged approximately $756 million per month, meaning that post-exemption monthly taxable sales were on average more than $76 million higher than in the months before the exemption, an 11.2 percent growth.”[1]

“Eliminating the sales tax on equipment and machinery has allowed Florida’s manufacturing companies to reinvest in their businesses and employees while continuing to help our economy recover,” said Senator Hukill.  “We can continue to encourage this economic growth through a permanent manufacturing sales tax exemption on machinery and equipment.”

# # #

[1] Florida TaxWatch, Extending the Manufacturing Machinery & Equipment Sales Tax Exemption, November 2015