Sales tax refund for building materials used in an Enterprise Zone

A refund is available for sales taxes paid on the purchase of building materials used to rehabilitate real property located in an Enterprise Zone. This incentive is limited to owners, lessors, lessees of the real property that is rehabilitated within an Enterprise Zone.

FORMS

• Business Equipment Sales Tax Refund Form DR-26S
• Building Materials Sales Tax Refund Application for Eligibility Form EZ-M

PURPOSE

• A refund is available for sales taxes paid on the purchase of building materials used to rehabilitate real property located in an Enterprise Zone.

ADVANTAGES

• Reduces the cost of rehabilitating real property.

LIMITATIONS

• The total amount of the sales tax refund must be at least $500, but no more than the lesser of $5,000 or 97% of the tax paid per parcel of property.
• 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 per parcel.

ELIGIBILITY REQUIREMENTS

• Property being renovated must be located within an Enterprise Zone.
• Businesses and residents are eligible for sales tax refund.
• Sales Tax Refund is available only one time per parcel of real estate.
• Incentive limited to owners, lessors, lessees or the real property that is rehabilitated within an Enterprise Zone.

CALCULATIONS

• 97% of the state sales tax paid on Building Materials.

For additional information the Economic Development Council of Tallahassee/Leon County, Inc. (850) 521-3111