October 21, 2020
Thursday, May 1, 2014
Law went into effect April 30, will help grow Florida’s more than 18,000 manufacturing companies
TALLAHASSEE, Fla. – Today, Governor Rick Scott celebrated the elimination of the manufacturing and equipment sales tax on Florida’s manufacturing companies. The law, which took effect April 30, was one of Governor Scott’s top priorities during the 2013 legislative session to encourage manufacturing companies to grow and locate in Florida. According to Enterprise Florida the elimination of the tax is expected to save the more than 18,000 manufacturing companies in the state approximately $141 million annually.
Governor Scott said, “For far too long Florida manufactures have been burdened by the sales tax on manufacturing equipment that many other states don’t require companies to pay. However, now this advantage for other states ends as our elimination on the sales tax of manufacturing machinery and equipment went into effect yesterday. By removing this tax Florida’s businesses will have a more competitive advantage over other states and countries, which will help Florida businesses create more jobs for families.”
The legislation fully eliminates an outdated five percent “productive output” requirement for businesses to receive a sales tax exemption on equipment. Until January 1, 2013, manufacturers were required to show proof of meeting a 10 percent productive output requirement. Governor Scott reduced this 10 percent requirement to 5 percent in the 2012 legislative session.
“The elimination of the manufacturing machinery and equipment sales tax removes a big hurdle for economic development in Florida,” said Secretary of Commerce and president and CEO of Enterprise Florida, Gray Swoope. “The removal of the tax levels the playing field as we compete with other states in the Southeast for manufacturing jobs. When you combine the elimination of the tax with our strong workforce, top-ranked infrastructure and global access, Florida makes a very compelling case as a state that businesses must look at for location and expansion opportunities.”
Florida manufacturers are a powerful economic engine for the state’s economy. In addition to removing the unnecessary tax on manufacturers, Florida’s strong workforce and top-ranked infrastructure make it the perfect state for manufacturers. Florida ranks among the top 10 states for establishments manufacturing a wide range of goods, including aerospace products, batteries, food and beverages, communications equipment, pharmaceuticals, semiconductors, boats and more.
Why Manufacturing is Important for Florida’s Economy:
More economic activity is gained for investments in manufacturing than in any other industry in Florida.
Each dollar invested in manufactured goods creates $1.43 of activity in other sectors—a multiplier that is double that of the service sector in Florida.
Florida private-sector average annual wages for manufacturing were more than $50,000 per capita, compared to slightly more than $40,000 per capita for all Florida private-sector average annual wages.
Florida manufacturers and exporters are a powerful combination for the state’s economy. Manufacturing accounts for 85 to 90 percent of Florida’s exports.
Manufacturers in Florida account for 5.1 percent of the total output in the state,employing 4.3 percent of the workforce.
Since 2000, Florida manufactured exports grew148 percent while the national average was a 90percent increase.
Florida ranks first in the nation in Manufacturing Export Intensity, the percentage of ourtotal manufactured goods that are exported.
Since 2011, the state has seen a steady increase in the number of manufacturing competitive economic development projects won. Project announcements include:
VISTAKON® Division of Johnson & Johnson Vision Care, Inc. production of the ACUVUE® brand contact lenses.
100 new jobs; $218 million in capital investment
Manned Aircraft Design Center of Excellence in Melbourne and an Aircraft Integration Center of Excellence in St. Augustine.
1,400 new jobs; $170 million in capital investment
Global producer of high-technology electronics for the aerospace industry.
300 new jobs; $7.5 million in capital investment
Manufacturer of underground enclosures to large utility providers, telecommunication companies, wireless companies, and cable television companies.
28 new jobs; $3.85 million in capital investment
Manufacturer of ambulances and rescue vehicles under the brands of Wheeled Coach, Road Rescue, McCoy Miller and Marque.
126 new jobs; $2 million in capital investment
A manufacturing facility for a world leader in liquefied natural gas
250 new jobs; $56.8 million in capital investment