Are Manufacturing and Machinery subject to sales tax?
While Florida's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Florida, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Florida.
In the state of Florida, as of April 30, 2014, an exemption will be provided for industrial machinery and equipment which has been purchased by eligible manufacturing businesses. This will be repealed on April 30, 2017. In addition, there are also exemptions created for an industrial M&E which will be used only for spaceport activities or to manufacture, process, compound, or produce tangible personal property which will be put up for sale (although this will be limited to any new or expanding businesses), industrial M&E used under federal procurement contracts, and industrial M&E used in semiconductor, defense, or space technology production.
In the state of Florida, to be considered exempt, the materials must be intended to become an ingredient or component of the completed product.
Utilities & Fuel
Sales of utilities & fuel are exempt from the sales tax in Florida.
Back to Florida Sales Tax Handbook