News
MAF - February 14, 2008ALERT on Sales Tax Exemption Proposal
February 13, 2008
Dear Manufacturing Community:
The Finance & Tax Committee of the Tax and Budget Reform Commission (TBRC) passed two proposals on February 12 that threaten manufacturing in Florida. These proposals now go to the Governmental Procedures and Structures Committee of the TBRC on February 25 or 26 (date not noticed yet).
CP 0007 Constitutional Amendment for a Mandatory Legislative Review of Sales Tax Exemptions
CP 0029 Statutory Recommendation relating to a Mandatory Legislative Review of Sales Tax Exemptions
The Legislature can review sales tax exemptions any time it desires and in fact, the Senate Finance & Tax Committee is reviewing them now. These proposals are unnecessary.
While manufacturing sales tax exemptions are defensible from a public policy standpoint and we believe would pass the “public good” tests, there are too many dangers along the way. These proposals send the wrong signal to manufacturers looking to locate in Florida or considering relocation; they would have a chilling effect on economic activity; they have the potential to put Florida manufacturers at an economic disadvantage with competing states; and it could mean the loss of jobs. Couple these messages with things that could go awry in the legislative process and we have the potential for the demise of our exemptions.
We will be crafting a sample letter for you to modify and send to the members of the next committee of reference. Al Stimac, President, MAF will be attending the next meeting where this proposal is heard. Some of the Business Journals have taken an interest and will be publishing articles. We encourage you to call them about this as well. Please help us spread the word that we need a huge response from the business community on this issue.
We do not oppose the legislature reviewing the exemptions at will, but we do oppose mandates to the Legislature or in the Constitution that will lead to a chilling of economic activity.
Nancy D. Stephens, CAE, IOM
Executive Director
1625 Summit Lake Drive, Suite 300
Tallahassee, FL 32317
850.402.2954 Phone
850.402.0139 Fax
www.mafmfg.com
