Unlike most other states in the nation, Florida doesn’t provide any relief from the state’s onerous business tangible personal property (TPP) tax on heavy equipment rentals. Nearly all other states in the region provide relief, have adopted reforms, or don’t levy the tax at all. Alabama, Georgia, North Carolina, and South Carolina all levy industry-supported replacement taxes or surcharges that have lessened the administrative and compliance burdens of the tangible personal property taxes they replaced. Mississippi offers a 100% income tax credit for taxes paid on inventory (and rental equipment is defined as inventory for purposes of the credit). 

To make Florida more competitive, it should treat mobile heavy equipment rental property (that is ultimately sold at retail) as inventory, similar to other states. This will reduce overall tax burdens and compliance costs for job creators in the state. 

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