To help address the problem of attracting and keeping manufacturing plants in Florida, the 1996 Legislature created a sales tax exemption on electricity charges for certain Florida manufacturers.
Our analyses determined that 1,101 companies were receiving the sales tax exemption on electricity charges as of September 1, 2000, an increase of 138 companies from the number identified in OPPAGA's 1996 study. A total of 178,860 persons were employed by these companies, an increase of 16,637 employees from 1996. The value of the sales tax exemption was estimated to be $44.4 million in Fiscal Year 1999-2000.
The Legislature should continue the sales tax exemption on electricity. Discontinuing the exception would make Florida's tax environment less predictable for businesses and could induce marginally profitable plants to close or move to other states.

Report on the Sales Tax Exemption on Electricity Charges
Report 96-27 December 1996

Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.