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Will Help Make Florida More Competitive
TALLAHASSEE, FL (April 28, 2014) – Florida will take a major step toward becoming more competitive this week, April 30, when the sales tax on manufacturing and equipment is eliminated, the Florida Chamber of Commerce announced today. The Florida Legislature voted to eliminate the manufacturing equipment sales tax during the 2013 Legislative Session – a top priority of the Florida Chamber and its partners at the Manufacturers Association of Florida, as well as Governor Rick Scott.
“It’s long overdue and we’re so excited to finally be at this point and applaud the Governor, the Florida Legislature and friends like the Florida Chamber for rallying around this manufacturing sales tax exemption which will really move Florida forward in the eyes of the whole nation and the world in manufacturing,” said Nancy Stephens, Executive Director of the Manufacturers Association of Florida, during an interview on The Florida Chamber’s Bottom Line.
More than 95 percent of Florida’s exporters are small businesses,
Florida is home to more than 18,000 manufacturers,
The industry’s average annual compensation in Florida is $63,853, and
While the rest of the state’s economy grew .5 percent from 2010-2011, Florida’s manufacturing industry grew 3.3 percent in that time.
“Florida has been at a competitive disadvantage by being the only state on the Atlantic seaboard and on the Gulf Coast to charge sales taxes on manufacturing equipment,” said Mark Wilson, President and CEO of the Florida Chamber. “As Florida’s trade and logistics industry grows and prepares to take advantage of the expansion of the Panama Canal, removing the manufacturing and equipment sales tax will help ensure Florida can take advantage of these new opportunities to double Florida-origin exports and create more high-skill, high-wage manufacturing jobs.”
The Florida Department of Revenue has issued a Tip Sheet providing details on which manufacturers are eligible as well as how to take advantage of the sales tax holiday on parts and accessories for machinery and equipment, Stephens explains on The Bottom Line.
Florida’s has a once-in-a-generation opportunity to transform the state’s economy to become a global hub for trade, logistics and export-oriented manufacturing activities, with the potential of creating 150,000 new jobs, according to the Florida Chamber Foundation’s Trade and Logistics Study 2.0.
“Manufacturers in Florida are in a perfect position to excel in international trade, and we want to fill up all of those cargo containers so that every one of them leaving Florida is full,” Stephens added.
The Florida Chamber thanks Governor Scott, the Florida Legislature and our Manufacturers Association partners for their support in making Florida more competitive.
Established in 1916 as Florida’s first statewide business advocacy organization, the Florida Chamber of Commerce is the voice of business and the state’s largest federation of employers, chambers of commerce and associations, aggressively representing small and large businesses from every industry and every region. The Florida Chamber works within all branches of government to affect those changes set forth in the annual Florida Business Agenda, and which are seen as critical to secure Florida’s future. The Florida Chamber works closely with its Political Operations and the Florida Chamber Foundation. Visit www.FloridaChamber.com for more information.