Manufacturers and industrial processors with facilities located in Florida may be eligible for a utility tax exemption. Florida offers an exemption from state sales tax and some local taxes on the purchase of electricity, natural gas, and water used in qualifying production activities. This tax exemption is authorized by F.S. § 212.08(7)(ff).

Exemption Language of F.S. § 212.08(7)(ff)

Charges for electricity or steam used to operate machinery and equipment at a fixed location in this state when such machinery and equipment is used to manufacture, process, compound, produce, or prepare for shipment items of tangible personal property for sale, or to operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations are exempt" ONLY INDUSTRIES: SIC 10, 12, 13, 14, 20, 22 - 39, and 212 and NAICS 423930.

Utility Study Requirement for Exemption Qualification

A Florida utility tax study must list every piece of equipment and appliance (production and non-production) that uses the utility and the annual consumption of each. Failure to properly calculate or classify utility usage is cause for denial of the exemption.

Florida Statute of Limitations on Tax Refund

3 years

State Sales Tax Rate: 4%

Average Local Sales Tax Rate: 3.31%

Helpful Resources

Florida Utility Exemption Certificate: Florida Purchaser's Exemption Certificate for Electricity or Steam

Florida Utility Exemption Statute/Rule: F.S. § 212.08(7)(ff)

Florida Claim Form for Tax Refund: Application for Refund - DR-26S