Targeted Tax Reforms Will Make Florida More Competitive
Florida Chamber Tax Cut Recommendations Include Business Rent Tax,
Manufacturing Machinery and Equipment And Corporate Income Tax
TALLAHASSEE (November 5, 2015) – In an ongoing effort to make Florida more competitive, the Florida Chamber of Commerce today announces support of targeted tax reforms that will further strengthen Florida’s economy and families, including reducing the business rent tax, reducing the sales tax on manufacturing machinery and equipment and continuing to support a reduction of the corporate income tax.
“For Florida, this is a competitiveness issue,” said David Hart, Florida Chamber of Commerce Executive Vice President. “Creating a fair and equitable tax system is key to growing high-wage, innovative and diverse jobs in Florida. While Florida already has one of the best tax climates in the nation, enacting smart and targeted tax reforms will produce greater economic growth and more opportunities for Florida’s families.”
Governor Rick Scott today released his $1 billion tax cut plan. For a more competitive Florida, the Florida Chamber supports the following targeted tax reforms:
A Reduction in Florida’s Business Rent Tax:
Florida is currently the only state in the nation that charges a Business Rent Tax. That means in Florida, businesses pay a six percent tax on the space they lease, including added costs to that lease, such as property taxes, maintenance and the cost of insurance— meaning some businesses are subject to double taxation. This tax costs Florida businesses $1.7 billion every single year. A one percent reduction this year advocated by the Florida Chamber would keep $287 million in the hands of Florida’s job creators, allowing them to hire additional employees, make improvements and reinvest back into their businesses.
Permanently Eliminating the Sales Tax on Manufacturing Machinery and Equipment:
In 2013, the Florida Chamber, thanks to efforts by Governor Scott and the Florida Legislature, led the charge with the Manufacturers Association of Florida to help create a program that would reduce the Sales Tax on Manufacturing Machinery and Equipment for three years. But Florida’s manufacturers need a more permanent solution. In order to provide Florida manufacturers with predictability and certainty and help continue growing Florida’s manufacturing industry, the Florida Chamber has long supported permanently eliminating the Sales Tax on Manufacturing Machinery and Equipment.
A Reduction of the Corporate Income Tax:
The Florida Chamber will continue to support reducing Florida’s corporate income tax. Since Governor Scott and the Florida Chamber started championing increasing the corporate income tax exemption in 2011, 79 percent of qualifying Florida businesses are fully exempt from paying corporate income tax under the current $50,000 exemption. This helps businesses focus on creating jobs and hiring Floridians.
Sales Tax Holidays:
Sales tax holidays such as Back-to-School and Hurricane Preparedness are a win for Florida’s families and Florida’s small businesses. Florida’s families are encouraged to invest back into their communities as well as effectively prepare themselves and Florida’s small businesses are able to drive traffic to their stores.
The Florida Chamber looks forward to working with Governor Rick Scott to help pass these targeted tax reforms.
The Florida Chamber of Commerce is the voice of business and the state’s largest federation of employers, chambers of commerce and associations, aggressively representing small and large businesses from every industry and every region. The Florida Chamber works within all branches of government to affect those changes set forth in the annual Florida Business Agenda, and which are seen as critical to secure Florida’s future. The Florida Chamber works closely with its Political Operations and the Florida Chamber Foundation. Visit www.FloridaChamber.com for more information.