Manufacturing & The Economy
Yesterday Gov. Rick Scott (R-FL) announced a plan to eliminate taxes on the purchase of equipment to manufacturing companies in Florida. Scott said building up the state’s manufacturing sector is critical to strengthening the state’s economy because it creates stable jobs in the state.
The governor will propose legislation this session to fully eliminate an outdated “productive output” requirement, currently at 5%, required for businesses to receive a sales tax exemption on equipment. Until January 1, 2013, manufacturers were required to show proof of meeting a “productive output” requirement of 10%. Scott reduced this 10% requirement down to 5% in the 2012 legislative session.