TAX NEWS - April 2009

Business Equipment Sales Tax Refund: Florida Rural and Urban Enterprise Zones

The Florida Enterprise Zone Program offers various tax incentives to businesses located within the designated enterprise zones. In addition, local governments may also offer their own tax incentives.

A refund is available for sales taxes paid on the purchase of certain business property in Florida, which is used exclusively in an Enterprise Zone for at least 3 years.


Forms

- Equipment Sales Tax Refund Form   EZ-E


Purpose

- A refund is available for sales taxes paid on the purchase of certain business property, which is used exclusively in an Enterprise Zone for at least 3 years.


Advantages

- Reduces the cost of purchasing new and used qualified tangible personal property.


Limitations

- Business equipment must have a sales price of at least $5,000 per unit.
- The maximum refund per application will be no more than $5,000 or 97% of the tax paid. 
- If 20% or more of the permanent, full-time employees of the business are residents of an Enterprise zone, the refund will be no more than the lesser of $10,000 or 97% of the tax paid. 


Eligibility Requirements

Business

- Must be located within an Enterprise Zone.
- Business equipment purchased must have a sales price of at least $5,000 per unit.
- Equipment purchased must be used exclusively in an Enterprise Zone for at least 3 years.


Calculations

- 97% of the state sales tax paid on Business Equipment.