On May 17, 2013, Governor Rick Scott signed legislation that will eliminate the sales tax that manufacturers pay when purchasing equipment in Florida. The bill provides that industrial machinery and equipment, purchased by a manufacturing business that is used at a fixed location within Florida will be exempt from sales and use tax.
The equipment must be used for the manufacture, processing, compounding, or production of items of tangible personal property for sale.
If at the time of purchase the purchaser furnishes the seller with a signed certificate certifying the purchaser's entitlement to this exemption, the seller is relieved of the responsibility for collecting the tax on the sale of such items, and the Department will look solely to the purchaser for recovery of the tax if it determines that the purchaser was not entitled to the exemption.
This exemption is effective immediately, and is set to be repealed on April 30, 2017.
Please contact one of our Tax Planning & Preparation professionals if you have any questions or need assistance in determining how this new law impacts your business by leaving a message below or by calling 440-449-6800.