Manufacturing Sales Tax Omittance Directed at Economic Growth

Published Date : Apr 16, 2015

In Chipley, the United States Governor Rick Scott asked the legislature to announce an exemption on the manufacturing sales tax, suggested in his 2015-16 account which is a perpetual measure to provide Florida businesses a legitimate convenience for growth.

The vice president of business development, named Terry Ellis said at WestPoint Home in Chipley, United States, that any time when the company has the chance to expand, the machinery purchases will become a major part of that expansion. Further he added that manufacturing is a huge industry and it employs approximately 317,000 Floridians in the United States. 

The sales tax discharge which had covered the manufacturing equipment and machinery was formerly enforced on a restricted basis in the year 2012. The Legislature protracted the discharge for consecutive three years in 2013. Ellis further said that acquiring a sales tax omittance makes it very easy to expand and reach out to the purchasing of new equipment

Through an analysis done by Florida TaxWatch which is a not for profit taxpayer institute in research and government, evaluates that the omittance would rescue qualifying businesses throughout the state via $142.5 million in taxes on equipment investments and machinery yearly.

The extent of industries that come under the bill is extensive and touches almost every conceivable service or product that is incorporated in the Florida businesses. The omittance applies to a very wide range of manufacturing segments, including tobacco, food production, textiles, footwear and clothing, wood, printing services, paper products, petroleum products, chemicals, plastics, pharmaceuticals, metal fabrication, rubber, glass, HVAC, concrete,  communications technology , medical supplies, aircraft and motor vehicles, jewelry, furniture, household goods and more.

Ellis pointed out that WestPoint has machinery operating a large number of sewing projects that amount anywhere between $150,000 and $400,000. If there was no omittance than the factory had to pay the standard sales tax exemption of about 7% sales tax exemptions.

This exemption in sales tax looks favorable and is aimed to achieve economic growth and will actually prove to be quite beneficial to a wide range of industries and segments and will enhance their expansion globally.