Here are the details on Governor Scott's proposed tax cuts
TALLAHASSEE, Fla. – Today, Governor Rick Scott announced that he is proposing $1 billion in tax cuts to grow the manufacturing industry and Florida’s small businesses to further diversify the economy and guard Florida against another economic downturn.
Governor Scott’s $1 billion tax cut package includes:
- Permanently Eliminating Income Tax on Manufacturing and Retail Businesses - The elimination of this tax will reduce the cost for businesses in Florida by about $770 million annually, attract more businesses to the state, and diversify Florida’s economy by helping more businesses succeed.
- Permanently Eliminating the Tax on Manufacturing Machinery and Equipment - This tax cut is estimated to reduce the tax liability of Florida’s manufacturing businesses by $76.9 million annually beginning in 2017. By permanently eliminating this tax, Florida will be more competitive for manufacturing businesses to start or expand. If no action is taken during the upcoming legislative session, there will be a substantial tax increase on Florida manufacturers.
- Cutting the Tax on Commercial Leases - Florida is the only state that has a tax on commercial leases which unfairly targets small businesses. Governor Scott is proposing to reduce the tax on commercial leases by 1 percent in 2017 through the use of both recurring and non-recurring funds. This will save Florida businesses $339 million over the next two fiscal years.
- Extending the Sales Tax Exemption on College Textbooks – Governor Scott is proposing to extend the sales tax exemption on the purchase of college textbooks for an additional year. The prices of college textbooks have increased significantly over the years, often exceeding $100 per book. Exempting college textbooks from the state sales tax is expected to save Florida students $46 million.
- Saving for Families with Sales Tax Holidays - The budget includes funding for a 10-day back-to-school sales tax holiday and 9-day hurricane preparedness sales tax holiday. These two tax holidays will save Florida families an estimated $72.8 million in the upcoming fiscal year.
Governor Scott said, “By eliminating the tax on business income for Florida manufacturers - big and small, and all Florida retailers, which include many small businesses all across the state, we are putting job creators on the road to success for years to come. I want Florida to be the small business capital of the world. Our state is already home to 500,000 small businesses. The more we can cut taxes – like the one on commercial lease – the more we can grow our small businesses in Florida and further diversify our economy to invest in our future.
“Florida is on a roll. Our businesses have added almost one million new jobs over the last four years, but we have more work to do. We can’t only create jobs when the national economy is good. We must cut taxes and diversify our economy so Florida can grow even when the national economy is bad. Florida must compete with Texas, and diversify our economy to guard against another recession.”