Changes Form To Specified Sales Tax Exemptions On Purchases Of Machinery And Equipment (Page 2 of 4) in pdf

Changes Form To Specified Sales Tax Exemptions On Purchases Of Machinery And Equipment Page 2

Revenue; and

Must purchase or lease qualifying machinery and equipment for use at a fixed location.

In response to a properly filed Form DR-1214, the Department will issue a temporary tax exemption permit to

qualified mining businesses or provide instructions on how to apply for a refund of previously paid taxes on

qualifying machinery and equipment.

Machinery and Equipment Purchased Under Federal Procurement

Effective July 1, 2006, expanding manufacturing businesses that purchase or lease qualifying machinery and

equipment for use under a federal procurement contract are no longer required to meet a $100,000 tax threshold.

Purchase transactions completed, or lease payments required to be made, prior to July 1, 2006, remain subject to th

$100,000 tax threshold.

Machinery and Equipment Purchased for Research and Development

Effective July 1, 2006, purchases or leases of machinery and equipment that will be used predominantly in research

and development activities are exempt from tax. The term "predominantly" means at least 50 percent of the time.

To purchase qualifying machinery and equipment for use in research and development tax exempt, the purchaser m

issue an exemption certificate or a direct pay permit to the selling dealer. A suggested format of an exemption

certificate is attached. For purposes of this exemption, "research and development" means research that has one of

following as its ultimate goal:

Basic research in a scientific field of endeavor;

Advancing knowledge or technology in a scientific or technical field of endeavor;

The development of a new product, whether or not the new product is offered for sale;

The improvement of an existing product, whether or not the improved product is offered for sale;

The development of new uses of an existing product, whether or not a new use is offered as a rationale to

purchase the product; or

The design and development of prototypes, whether or not a resulting product is offered for sale.

How to Register with the Department

Registration with the Department can be accomplished by using one of the following methods:

Accessing the Department’s Internet site at

and using the Department’s "e

No fee is required for this method of registration; or

Filing Form DR-1, an Application to Collect and/or Report Tax in Florida, with the Department. This method

requires payment of a $5 registration fee.

References: Ch. 2006-56 and 57, L.O.F. s. 212.08(5)(b) and (18), F.S.

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Changes Form To Specified Sales Tax Exemptions On Purchases Of Machinery And Equipment Page 2