Florida Manufacturers May Qualify for New Tax Exemption by Karen A. Lake, CPA

Posted on October 02, 2014 by Karen Lake

Effective April 30, 2014, eligible Florida businesses may claim an exemption from sales and use tax on the purchases of certain industrial equipment and machinery used for manufacturing, processing, compounding and production of tangible personal property that is intended for future sale. The exemption, which expires on April 30, 2017, also covers the parts and accessories businesses purchase for manufacturing equipment before the businesses puts the machinery into service.


Under the new exemption, eligible businesses include those whose primary activities where the equipment is located are classified as manufacturers under Codes 31, 32 or 33 of the North American Industry Classification System (NAICS.) This includes manufacturers of foods and beverages, textiles and apparel, computers and electronics, chemicals and transportation equipment.


To claim the exemption, businesses must provide equipment and machinery sellers with signed certificates claiming their right to the statutory exemption. However, if it is later determined that the business is ineligible for the exemption, the state will seek to collect taxes from the business rather than the seller.


States offer a variety of sales and use tax exemptions to help them maintain and attract new businesses and support the creation of higher-paying jobs in their region. For example, in Florida, if a business is not considered eligible for the new manufacturing exemption, it may still qualify for an exemption under the “new and expanding business exemption” already in effect.


The advisors and accountants with Berkowitz Pollack Brant maintain a watchful eye on state and local tax issues that affect clients in a range of industries, both in Florida and throughout the country.

About the Author: Karen A. Lake, CPA, is associate director of Tax Services with Berkowitz Pollack Brant. She can be reached at the Miami CPA firm’s office at (305) 379-7000 or via email