ATLANTA--A bill recently signed into law by Florida Gov. Rick Scott (R) to eliminate sales tax on manufacturing equipment purchases could face legal challenges because although it did receive approval by a majority, it did not meet the required two-thirds House vote, House Minority Leader Perry Thurston Jr. (D) said May 21.
Scott signed H.B. 7007 into law May 17 to eliminate sales tax on the purchase of manufacturing equipment, a move in which the sales tax cuts are expected to be offset by their anticipated economic development benefits.
But Thurston maintained that organizations representing cities and counties--the groups most likely to be impacted by a sales tax cut--would also be most likely to challenge the new law.
Thurston expressed concern that there would be no accountability for those receiving the tax incentive to demonstrate an increase in economic development, such as the number of new jobs created.
Additional information on H.B. 7007 is at http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49814.
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