Keep
Florid’as Economy Growing
Florida’s tax code is not only the source
of revenue for state government -- it is also an important economic
development tool. There are times when exempting an item from
taxes will bring more money into the state than would be realized
if it were taxed.
A prime example of that is the existing partial sales-tax exemption
for industrial machinery and equipment purchased for use in an
expanding facility engaged in manufacturing or spaceport activities.
Currently a manufacturer must pay the first $50,000 in sales tax,
before the exemption kicks in. Rep. Matt Meadows (D-Lauderhill)
and Sen. Jeff Atwater (R-North Palm Beach) have filed legislation
that would allow for a full, rather than partial, sales-tax exemption
for industrial machinery and equipment purchases, when the business
can demonstrate that the items will be used to increase productive
output at the facility by at least 10 percent.
Manufacturing inputs are currently assessed sales tax in Florida
and the final product is taxed as well. This is not the case in
several neighboring states, including Georgia, which have these
exemptions on the books thereby creating an un-level playing field
for our manufacturers.
The intangible tax is another example of levy a that puts our
state at a competitive disadvantage. It has been called a tax
on savings because it punishes people who invest part of their
money, rather than spending it all. Florida is one of only four
states that taxes intangible personal property, such as stocks,
bonds, notes and other obligations to pay money.
In 1999, the Florida Legislature began phasing out the intangible
personal property tax. Legislation by Rep. Fred Brummer (R-Apopka)
and Sens. Mike Haridopolos (R-Melbourne) and Jeff (R-North Palm
Beach) Atwater has been filed to complete the elimination of the
half mill annual intangible personal property tax.
Legislation has also been filed that would set up three sales-tax
holidays. The first would apply to a one-week period when virtually
every item for personal use costing up to $5,000 would be exempt
from sales tax.
The second sales-tax holiday would take place at the beginning
of hurricane season when the exemption would apply to a predetermined
list of emergency items. This bill is intended to help Floridians
prepare for the possibility of a repeat of the 2004 and 2005 hurricane
seasons.
The third would establish a nine-day period during which sales-tax
would be collected on books and clothing having a selling price
of $50 or less and on school supplies valued under $110. |
