Florida’s 2012 Tax Changes
(April 6, 2012)
The following highlights summarize Florida’s recently enacted tax law changes. All changes are effective Jan. 1, 2013, except for the intangible personal property tax, which became effective on March 28, 2012.
Corporate Income Tax (CIT) – Doubles the amount of corporate income exempt from the CIT from $25,000 to $50,000.
Sales and Use Tax – Industrial machinery is exempt from sales and use tax if the machinery purchased increases the facility’s productive output by at least 5 percent. Previously, the exemption was available only if productive capacity was increased by not less than 10 percent.
The legislation also expands the availability of sales tax exemptions for electricity used by agricultural businesses. The exemption has been expanded to include electricity used by packinghouses where fruits, vegetables, or meat from cattle or hogs are packed or otherwise prepared for market or shipment.
Sales and use tax exemptions for repairs made to certain types of aircraft were also expanded. Prior to the change, a nonrotary wing aircraft qualified for the exemption if its maximum certified takeoff weight was more than 15,000 pounds. The legislation reduces the maximum weight to more than 2,000 pounds, allowing many more types of business aircraft to qualify for the exemption.
In addition, new exemptions for manufacturers of aircraft engines and gas turbine engines were enacted as well as exemptions for the sale or lease of taxicabs equipped with a device designed to transport physically disabled persons.
Intangible Personal Property Tax on Governmental Leaseholds – Legislation retroactive to Jan. 1, 2011, provides an exemption from intangible personal property tax when the lessee serves or performs a governmental, municipal, or public purpose or function. However, this does not create a right to a refund for tax paid prior to March 28, 2012.
For more information on how this might affect you, please contact Gary Peric at 813.209.2403, firstname.lastname@example.org, Glenn Feldman at 954.202.8615, email@example.com, or any Crowe Horwath LLP tax professional.
Under U.S. Treasury rules issued in 2005, we must inform you that any advice in this communication to you was not intended or written to be used, and cannot be used, to avoid any government penalties that may be imposed on a taxpayer.