Sales tax refund for business machinery and equipment used in an Enterprise Zone

A refund is available for sales taxes paid on the purchase of certain business property, (e.g. tangible personal property such as office equipment, warehouse equipment, and some industrial machinery and equipment), which is used exclusively in an Enterprise Zone for at least three years.

FORMS

• Business Equipment Sales Tax Refund Form DR-26S
• Business Equipment Sales Tax Refund Application for Eligibility Form EZ-E

PURPOSE

• A refund is available for sales taxes paid on the purchase of certain business property, which is used exclusively in an Enterprise Zone for at least 3 years.

ADVANTAGES

• Reduces the cost of purchasing new and used qualified tangible personal property.

LIMITATIONS

• Business equipment must have a sales price of at least $5,000 per unit.
• The maximum refund per application will be no more than $5,000 or 97% of the tax paid.
• 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.

ELIGIBILITY REQUIREMENTS

BUSINESS

• Must be located within an Enterprise Zone.
• Business equipment purchased must have a sales price of at least $5,000 per unit.
• Equipment purchased must be used exclusively in an Enterprise Zone for at least 3 years.

CALCULATIONS

• 97% of the state sales tax paid on Business Equipment.

For additional information contact the Economic Development Council of Tallahassee/Leon County, Inc. (850) 521-3106.