Table 6.7  MACHINERY AND EQUIPMENT TAXES

Machinery and Equipment Taxes*

Defense and Space Technology

Manufacturing. Effective May 30, 2006, certified defense and space technology facilities became fully exempt from tax on qualifying purchases or leases of industrial machinery and equipment that is used to design, manufacture, assemble, process, compound, or produce defense technology products or space technology products for sale or use by these facilities.

Research and Development. Effective May 30, 2006, certified defense and space technology facilities became fully exempt from tax on qualifying purchases or leases of machinery and equipment that will be used predominantly in defense or space technology research and development.

Effective Date. Purchase transactions completed, or lease payments required to be made, prior to May 30, 2006, remain subject to the limitation of a 25% exemption from tax on qualifying machinery and equipment.

Expanding Manufacturers

Effective July 1, 2006, expanding manufacturing businesses are no longer required to meet a $50,000 tax threshold. Purchase transactions, completed, or lease payments required to be made, prior to July 1, 2006, remain subject to the $50,000 tax threshold.

Qualifications

Must be registered for sales and use tax purposes with the Department of Revenue;

Must file Form DR-1214, an Application for Temporary Tax Exemption Permit, with the Department of Revenue;

Must purchase or lease qualifying machinery and equipment to manufacture, process, compound, or produce tangible personal property for sale at a fixed location; and

Must show an increase in productive output of not less than 10 percent to qualify for the exemption.

Contact information

Telephone 800-352-3671 or 850-488-6800 or www.myflorida.com/dor

* For information only, consult your tax adviser

Source: Florida Department of Revenue

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