Time will soon be up for a temporary break from a tax on manufacturing equipment, but Gov. Rick Scott wants the Legislature to make the suspension permanent.
Florida businesses first enjoyed a limited exemption on the state's sales tax on manufacturing machinery purchases starting in 2012. The Legislature the following year suspended the tax entirely for three years, beginning in 2014 and lasting through April 30, 2017.
Now Scott is again trying to eliminate the tax for good as part of $1 billion in cuts outlined in his 2016-17 budget proposal.
He predicts in his budget recommendation that making the cuts forever would cost the state $76.9 million in revenue per year, starting in 2017. Florida TaxWatch, which has continuously recommended making the suspension permanent, predicts the change would save businesses $73.1 million in taxes per year.
Scott had suggested the same thing in his 2015-16 budget proposal, with bills filed to enact the change. The issue was lost amid a protracted budget fight over health care costs during the 2016 session.
There are now bills in the Senate (SB 98) and the House (HB 115) to eliminate the tax after the three-year suspension ends in mid-2017. It's possible that even if those don't pass this year, the subject could come up again later. The tax is not in effect for 2016.
Lawmakers will decide whether those bills pass when the legislative session begins Jan. 12. Scott still wants to get rid of the tax, but until the suspension is permanent, we rate this promise In The Works.