TAX NEWS - April 2009

Sales Tax Exemption for Electrical Energy: Rural and Urban Enterprise Zones - Florida tax

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 50% sales tax exemption is available to qualified businesses located within an Enterprise Zone on the purchase of electrical energy, if the municipality has reduced the municipal utility tax by at least 50%.


Forms

Sales Tax Exemption Form DR-15 JEZ


Purpose

A 50% sales tax exemption is available to qualified businesses located in an Enterprise Zone on the purchase of electrical energy.


Advantages

The tax exemption is available for up to 5 years.


Limitations

The tax exemption is limited to municipalities that have passed an ordinance to reduce the municipal utility tax for Enterprise Zone businesses.

 
Eligibility Requirements

- Business located in a Rural Enterprise Zone that is located in a:  newly occupied structure (no previous electrical service); or renovated structure (no electrical service for 3 months); or has received a building materials sales tax refund.
- Tax exemption is limited to municipalities that have passed an ordinance to reduce the municipal utility tax (by at least 50%) for eligible Enterprise Zone businesses.


Tax Credit Calculations

- 50% or 100% tax exemption from state sales tax on utilities and the abatement of municipality utility tax (based on local ordinance).
- If 20% or more of the business's permanent, full time employees are residents of an Enterprise zone, the business will receive a 100% exemption from sales tax
- If less than 20% of the business's permanent full time employees are residents of an Enterprise Zone, the business will receive a 50% exemption from the sales tax.