Florida Exemptions for Manufacturers!

It might as well be Christmas in July for manufacturers in Florida this year because exemptions are being extended left and right! The sales tax exemption for machinery and equipment found in section 212.08(7)(kkk), Florida Statutes, has become permanent for all machinery and equipment except mixer drums. This means that any industrial machinery and equipment with a permanent use in the state for the manufacture, processing, compounding, or production of items of TPP (tangible personal property) will continue to be exempt instead of expiring on April 30, 2017 as previously scheduled.

This is offered to any “eligible manufacturing business” as described in the North American Industry Classification System (NAICS) found here http://www.census.gov/cgi-bin/sssd/naics/naicsrch.

But not only is this exemption being extended temporally, but the actual exemption is also being extended to include recycling industries classified under code 423930 of the (NAICS) and post-harvest activities as well. Savings all around!

Included within the exemption are all labor charges for the repair of such machinery and equipment, as well as, parts and materials used in the repair and incorporated into the machinery and equipment. A postharvest activity business is a business whose primary business activity, at the location where the postharvest machinery and equipment is located, is classified under code 115114 of the NAICS (2007). Postharvest activities are defined as services performed on crops after harvest with the intent of preparing the crop for market or further processing. These activities include crop cleaning, sun drying, shelling, fumigating, curing, sorting, grading, packing, and cooling.

Purchasers will still need to present their signed certificate to their sellers certifying the purchaser’s entitlement to the exemption. If you want to see the form, follow the link below:

http://dor.myflorida.com/dor/tips/tip16a01-07.html

If you want to stay updated on this exemption as well as others in Florida and around the United States, come check out our blog! Sales Tax DataLINK is dedicated to keeping you informed on the latest sales and use tax changes, and you’re sure to be impressed.

Latest Articles

Sales Tax Software

Sales Tax Software

Sales tax calculations and filing can be done by hand. When you make a sale, you figure out whether the goods and services are taxable and whether you have nexus in the buyer's tax jurisdiction. More on that later. Once you've determined that you need...

read more
Customer Service and Your Sales Tax Solution

Customer Service and Your Sales Tax Solution

Sales tax is complicated. We've just gone through the annual flurry of back to school tax holidays, for example. If you're a remote seller of clothing, you probably sell mostly through retail. But you might have some direct to consumer sales. In some...

read more
Sales Tax Holidays for E-commerce

Sales Tax Holidays for E-commerce

A lot of our clients are manufacturers, contractors, or in some other industry that doesn't usually have to think much about sales tax. Retailers know they have to collect sales tax, and usually plan for it. We often hear from people who had no idea...

read more