businessclimate
DESCRIPTION
fter years of dynamic growth and changes recruitment of companies. Florida can no longer compete primarily as competitiveness, Florida must remain vigilant in that supports the creation, growth, retention, and adapting its business climate accordingly. Competitive, predictable business costs, a friendly business considerations are essential. Allan Bense Vice Chair, Enterprise Florida ensure that it provides an overall business climate to its economy, it has become clear that 60TRANSCRIPT
After years of dynamic growth and changes
to its economy, it has become clear that
Florida can no longer compete primarily as
a low cost state. While this is a sign of progress for
Florida, it puts increasing pressure on the state to
ensure that it provides an overall business climate
that supports the creation, growth, retention, and
recruitment of companies.
Competitive, predictable business costs, a friendly
tax and regulatory environment, and other
business considerations are essential.
In addition, as structural changes occurring in
the economy create new drivers of economic
competitiveness, Florida must remain vigilant in
adapting its business climate accordingly.
business climate For the innovation
economy
STRATEGIC PRIORITY:
60
2010 -2015 Strategic Plan for Economic Development
Florida needs to jump start its economy not just for the short-term, but for long term success in the innovation economy. We must develop policies with a renewed understanding of competitiveness that will enable Florida to succeed in changing times with a new direction.
Allan Bense Vice Chair, Enterprise Florida
According to a recent Florida TaxWatch analysis, Florida
generally fares well in state business climate rankings.
Florida’s strengths include its absence of a personal yincome tax, relatively low unemployment insurance taxes, openness in trade, and friendliness to small business and entrepreneurs.
Weaknesses include high business costs, including yproperty tax burdens, state and local taxes, and general business costs (e.g. electricity costs and rents).
Given the complexity of comparing data across states, ybusiness rankings typically do not include measures of permitting/regulatory delays or compare incentive funding levels. Nonetheless, these remain areas of critical concern for Florida’s business and economic development communities.
Forum Photo
Where We Are Today and Where We Need to Be
What You Told UsAt regional planning forums across the state, Florida’s economic development stakeholders focused on the need to make Florida friendlier to small businesses, more focused on the growth of existing companies, better align business development tools with changing business needs, address a roller coaster property insurance market, and find ways to fund the state’s priorities.
Florida’s economic development leaders expressed particular concern about the size of Florida’s incentive toolkit relative to other states and the need to reduce regulatory and permitting delays that cost businesses money and slow or derail projects.
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Where We Are Now
MAjor BusinEss CliMAtE rAnking sourCE
FloridA’s rAnk AMong stAtEs
American Legislative Exchange Council 11
Beacon Hill Institute 32
Corporation for Enterprise Development C/C/d
CNBC 17
Forbes 8
Fraser Institute 4
New Economy 23
Site Selection 13/9
Small Business and Enterprise Council 5
Tax Foundation 5
Allan Bense, Enterprise Florida Vice Chair, moderating a state roundtable discussion on business climate issues. Panelists included (left to right): Secretary of the Department of Community Affairs Thomas Pelham, Assistant Secretary of the Department of Transportation Debbie Hunt, Representative Marti Coley, President of the Florida Council of 100 Susan Pareigis, Commissioner of the Department of Education Eric Smith, and Senator Al Lawson.
94% of online survey respondents agree that ensuring a competitive business climate is still a leading priority and critical to the state’s economic future.
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Competitive Business Climate
R o A d m A p R e c o m m e N d A T i o N s
smAllBUsiNess
Small business is the backbone of
Florida’s economy.
RegUlAToRY eNviRoNmeNT
Florida needs an
efficient regulatory system relative to
its competitors.
cosT compeTiTiveNess
Florida is no longer a low cost state, but must meet bottom
line needs.
compeTiTive iNceNTive
ToolkiT
Changing economic conditions impact the
competitiveness of Florida’s economic
development toolkit.
Recommendation #1
Strengthen Florida’s incentive toolkit for
the 21st century.
Recommendation #2
Provide a business climate conducive
to entrepreneurship and small business
development.
Recommendation #3
Improve the state and local regulatory
environment.
Recommendation #4
Provide predictable, competitive business
costs
r e s p o n s i v e t o a d y n a m i c e c o n o m y
BuSInESS ClImATE
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Florida’s incentive toolkit is used both to help
stimulate job creation in the near term and support
long-term economic growth in Florida’s targeted
industries and areas of special need. It has a
long and successful track record of generating
significant returns in the form of business
investment, high wage job creation, tax base
growth, and more. The current downturn, however,
has brought to the fore several competitive
weaknesses in Florida’s existing toolkit. Structural
changes taking place at
the macroeconomic level
nationally have caused
competitor states to adopt a
more aggressive posture with
incentives. This environment,
coupled with changes in
Florida’s own economic
structure, make it both a
necessary and ideal time to
re-evaluate Florida’s existing
incentive programs to make
adjustments and fill gaps.
ACTIOn ITEmS
Accelerate job creation for economic recovery
Promote productivity gains through capital investment
Expand corporate r&d
Expand the number of corporate head-quarters in Florida
Accelerate Job creation for economic Recovery Florida is struggling to emerge from a two year recession that has
significantly impacted businesses and led to an unemployment
rate approaching 11%. Florida must focus on creating economic
opportunities today and into the future through programs that
help businesses of all sizes retain and build operations and provide
access to needed capital. Business retention and expansion must be
a core focus for near term job creation, particularly in a slow growth
environment.
Specific measures that can be taken in this regard include:
modify the Qualified Targeted Industry (QTI) program to X
jump start job creation and encourage business retention
and expansion.
Increase per job award for projects in high impact ysectors (corporate HQ, clean energy, transportation equipment manufacturing, life sciences, financial services, information technology and semiconductors).
Offer additional QTI state incentive dollars for higher ythan required local financial contribution.
Remove QTI $5 million lifetime business unit cap, as ythis is a disincentive for existing Florida businesses contemplating additional growth in this State.
Explore incorporating existing, underutilized rural yand urban incentives into QTI in an effort to enhance the ability of these programs to drive economic diversification in Florida’s target opportunity areas.
lower the investment threshold for High Impact X
Performance Incentives (HIPI) in order to enhance
availability of this attractive, yet fiscally conservative
incentive. Lowering the new job creation and capital
investment requirements for HIPI to 50 new jobs and $50 million
investment (25 jobs and $25 million for R&D projects) can help
to spur activity in high impact sectors. The performance-based
HIPI grants would provide critical cash infusion at strategic
points in a project’s timeline.
Fund the Quick Action Closing Fund. X The Quick Action
Closing Fund appropriation was reduced from $46.4 million in
FY 2008-09 to $13.46 million in FY 2009-10. While the precise
impacts of this decline will not be known for several months,
this change drastically inhibits Florida’s ability to compete
BUsiNess climATe RecommeNdATioN #1
Strengthen Florida’s Incentive Toolkit for the 21st Century
Adjustments should be made to Florida’s incentive toolkit following 3 broad principles:
• MaintainthevalueofFlorida’sincentivetoolkit—especially in light of significantly higher investment by national and regional competitors.
• Fine-tunesomeexistingincentivessothatthey can be more effectively deployed for immediate and emerging needs.
• Developnewtoolstoaddressgaps/respond to changing economic drivers.
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for important economic development projects—all at
a time when other states are increasing their economic
development efforts. For example, the Texas Enterprise
Fund discretionary cash grant was initially funded at $290
million in 2003 and has been maintained at a balance of $190
million as of August 2009. Georgia, North Carolina, New York,
Pennsylvania and Virginia also have similar discretionary deal
closing funds ranging from $15 million to $45 million.
promote productivity gains Through capital investmentCapital investment in new facilities and equipment is crucial to
manufacturers who must continually improve their products
and manufacturing processes to keep costs down and remain
competitive in global markets, and is key to increased productivity
and efficiency. In today’s environment of business consolidation
and the need to redistribute production volumes, Florida has
an opportunity to capture new capital investment, which leads
to preservation of existing jobs as well as downstream new job
creation.
Unfortunately, Florida ranks poorly—36th among states and 16%
below the national average—in average investment per employee
in manufacturing machinery and equipment. Florida also trails
the national average in worker productivity.1 As a result, Florida
needs incentives to more aggressively promote the adoption of
innovative technologies and production methods, or at the very
least, to remove disincentives for such investment.
In addition to enhancing productivity and competitiveness,
additional capital investment also leads to new direct and indirect
revenue streams at both the State and local levels. The additional
investment, much of which is taxable will enhance State sales and
use tax as well as corporate income tax. This investment will also
increase local ad valorem tax revenue by increasing the value of
personal property on the tax rolls.
Specific measures that can be taken in this regard include:
Eliminate the 10% expansion requirement for Florida’s X
manufacturing machinery and Equipment (mmE)
exemption. Florida’s MME exemption is available for new
and expanding businesses increasing productive output
by at least 10%, but is not available for replacing existing
equipment if the expansion threshold is not met. In contrast,
many of Florida’s key competitors—including Georgia,
Virginia, New York, North Carolina, and Texas—offer
complete exemptions (including replacement equipment).
Florida’s partial exemption presents a long-term
competitiveness weakness in promoting productivity growth,
as well as an immediate challenge. In the current economic
climate Florida’s 10% output expansion requirement climate
serves as a disincentive for capital investment decisions.
Some Florida manufacturers are deferring investment in
capital equipment because the market cannot presently
bear a 10% output expansion and sales tax exemptions are
important to the investment decision. This disincentive keeps
companies from making investment now that will improve
their competitiveness through economic recovery and into
the future.
Elimination of the 10% expansion requirement could also
mean the removal of the Semiconductor, Defense and
Space Technology (SDST) sales tax exemption, which
already exempts replacement equipment from sales tax for
businesses in these sectors.
Adjust the Capital Investment Tax Credit (CITC) program X
to expand its impact in encouraging capital investment
and effectiveness in supporting the growth of companies
in Florida. CITC is designed to attract and grow capital
intensive industries in Florida. However, its large thresholds
and industry restrictions often limits its applicability to
projects. Expanding eligibility and providing more flexible is
important to promoting greater capital investment.
Reduce the job creation requirement to 50 new jobs yin order to encourage investment in new technology and ensure Florida businesses remain competitive.
Expand CITC to all target industries. y
Allow the transferability of tax credits, providing ya revenue stream to innovative businesses. Small businesses that do not have State corporate income tax liability can still be induced to invest capital and create jobs. The transferability of tax credits will provide essential, predictable cash flow, which can be reinvested in the business to further advance productivity enhancements and new job creation.
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expand corporate R&dR&D is the source of the discoveries and ideas that fuel innovation
and technological change—and is thus ultimately a key driver of
economic growth, competitiveness, and prosperity. As a result,
expanding Florida’s R&D base is vital for Florida’s long term
economic diversification and growth in an increasingly knowledge-
based and innovation-driven global economy. In particular, Florida
must ensure that it has a robust R&D base that is aligned with
industry needs.
According to the most recent data, Florida—the nation’s 4th most
populous state—ranks 16th among states in total R&D spending,
17th in total corporate R&D performed, 36th in terms of overall
corporate R&D intensity (R&D as a share of GDP). This poor/
under-performance in corporate R&D is a long standing strategic
challenge that has yet to be sufficiently addressed through the
state’s incentive toolkit.
Fortunately, proven policy options are available:
Enact a state R&D tax credit. X Research convincingly
shows that the federal R&D tax credit is an effective tool
for stimulating corporate R&D investment, which in turn
stimulates faster economic growth. Building on this success,
more than 30 states have created state-level R&D tax credit
programs. These state-level programs have also been shown
to increase corporate R&D investment and the number of
high technology establishments within a state.2
Include transferability of credits to provide a revenue ystream for innovative young companies that often cannot secure traditional financing and face capital gaps
Expand the Innovation Fund. X To date, the Innovation
Fund has played a leading role in attracting leading research
institutes and companies that have expanded innovation-
based economic activity both in their own right and through
spin-off generation. In addition, these high profile projects
have improved the state’s standing as an innovation state.
Over a cumulative 20 years, this investment is expected to
create an estimated $22.1 billion impact.
The Innovation Fund should be funded again at a significant
level and expanded to include the three initiatives to make
Florida’s innovation toolkit more robust:
Retain the Fund’s original use as an incentive for ythe attraction of corporate R&D facilities and non-profit research institutes with capital investments (example: threshold of $25 million) and the creation of high wage jobs (example: at least 25 jobs at 150 percent of the state average).
Consider adding a matching fund component to be yused by Florida universities to attract federal R&D centers and labs. The Fund would subsidize half the match required to compete nationally. (Note: R&D funding is increasing at the federal level. At the same time, most federal agencies are now requiring mandatory matches).
Add an equity partnership investment component yfor use in recruiting major corporate and non-profit R&D facilities, helping to fund start-up costs in return for a portion of royalties. The potential revenue stream generated would be returned to the Fund and/or used to help subsidize technology commercialization grants to continue to enhance Florida’s innovation economy.
Retain and promote the university match component X
of the Semiconductor, Defense, and Space Technology
(SDST) exemption, and broaden it to all manufacturers
under mmE. The SDST sales tax exemption currently
allows applicants to contribute the exempted value of the
sales tax to specific University research and development
efforts, if matched by the University. This program leads to
a unique partnership between businesses and educational
institutions for the advancement of collaborative research
efforts. Retaining this match component and broadening
it for all manufacturers will expand business and university
cooperation statewide in sectors beyond semiconductor,
defense and space.
expand the Number of corporate Headquarters in FloridaCorporate headquarters are valuable from an economic
development standpoint thanks to their high wage and high-skill
employment, visibility/prestige, corporate citizenship, stability,
spin-off potential, and more. Regrettably, Florida is currently
home to a disproportionately low share of the nation’s corporate
headquarters given its size.
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North Central Regional Forum, Gainesville
Global Commerce Forum, Miami Gardens
Adjustments to Florida’s existing incentives are needed to
improve their competitiveness relative to other states—including
Tennessee, Georgia, Texas, and more—that have been especially
aggressive in this area.3
Reduce investment and job creation threshold for HIPI X
and the job creation threshold for CITC to encourage
corporate headquarters relocations. The prevalence of
existing, high-quality, low-cost office space makes the current
economic climate a good opportunity to recruit corporate
headquarters.
Increase the per job award for high impact sectors, X
including corporate headquarters under QTI. A higher
per job award places additional emphasis on the importance
of generating job creation in the sectors that provide the
greatest economic impacts.
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Small business is the backbone of the Florida
economy—the state’s more than 426,000 small
businesses (with fewer than 500 employees)
represent 99% of all employers and 44% of private
sector employment. Florida is
also a highly entrepreneurial
state, generating significant
numbers of new business
births each year. Florida must
work to reduce small business
deaths by creating the
right environment for small
business development and
growth, and to retain its high
growth young businesses.
Roadmap forum participants
across the state called for a
greater focus on economic
gardening and small business development
assistance programs that provide services specific
to companies’ stages of development—including
market intelligence, technical assistance, and
leadership development—and outlined a range of
business climate issues hindering small business
growth and entrepreneurship.
expand Florida’s Financial Toolkit for small and medium BusinessesNew programs are needed to address a lack of available capital
hindering the day-to-day operation of Florida’s small and medium
sized businesses stemming from the global credit crunch, and that
has long challenged the state’s high growth, innovative, young
companies.
Establish a low interest loan fund. X Build upon the pilot
Economic Gardening Business Loan program by establishing
a low interest loan fund coordinated at the state level but
implemented though a bank consortium. A pool of loan
capital should be established from individual banks willing to
commit funds and share risk with the State. The monies would
be deployed in support of growth businesses and innovation
based companies with the full expectation of repayment.
Bank underwriting standards would be used, and the state
would help build reserves for losses and underwrite the cost
to maintain the lending consortium as a means of supporting
innovation-based business in Florida.
The Florida Office of Small Business Advocate and similarly
intended programs in other states provide a number of specific
terms and requirements for consideration.
Provide the Florida Development Finance Corporation X
with statewide authority. The Florida Development Finance
Corporation operates through inter-local agreements with
counties and cities. There is no statewide lending authority for
business and industrial finance, and borrowers must navigate
applications and procedures that are different in every locality.
Multi-jurisdictional bond issues have unnecessary complexity.
Providing the Florida Development Finance Corporation with
statewide authority will allow economic development projects
to have clear, timely responses on bond financing needs
regardless of where the project is located.4
Allow the transferability of tax credits for programs X
including the Capital Investment Tax Credit (CITC), and, if
enacted, the R&D tax credit. The transferability of tax credits
will provide essential, predictable cash flow to innovative small
businesses that do not have State corporate income tax liability,
while supporting job creation and capital investment. Tax credit
transferability is used to benefit innovation businesses in a
variety of competitor states.
BUsiNess climATe RecommeNdATioN #2
Provide a Business Climate Conducive to Small Business Development and Entrepreneurship
ACTIOn ITEmS
Expand Florida’s financial toolkit for small and medium businesses
Expand technical assistance and business support services for small business and second stage growth companies
Address regulatory issues and policies that disproportionately impact small business
“Economic gardening programs succeed by creating an environment that nurtures entrepreneurs … The public sector plays a much more direct role in assisting local businesses in an economic gardening program than in a traditional economic development plan.”
—Federal reserve Bank of Atlanta, “Economic gardening Helps Communities grow their own jobs”
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Northwest Forum, Pensacola
expand Technical Assistance and Business support services Available to small Businesses and second stage growth companiesTechnical assistance is at the core of economic gardening and
small business development. By providing critical resources
not otherwise available to or feasible for small firms—including
market intelligence, tax/legal counsel, business plan development,
strategic planning, technology training, grant assistance, financial
analysis, human resources development, and export training—
technical assistance helps small businesses identify and find
solutions to address obstacles to growth. For example:
Florida Small Business Development Center network y . Florida’s 35 Small Business Development Centers (SBDCs) provide one-on-one counseling to small business owners and entrepreneurs at no cost, covering topics such as business start up, advertising/sales, tax issues, and license regulations. SBDCs also offer training workshops, seminars, and conferences to cover beginner and advanced business management skills.
Economic Gardening Technical Assistance Pilot y – Economic gardening programs address the needs of second stage growth companies, providing resources and tools needed to create strategies to penetrate new markets, refine business models, and develop leadership teams. Florida recently launched a pilot state economic gardening technical assistance program via the Florida Economic Gardening Institute. The Institute will use a hub-and-spoke arrangement, with Orlando as the center and nodes across the state managed by partners, including local economic development organizations
workforce development agencies, and others.
Address Regulatory issues and policies That disproportionately impact small BusinessSpecial attention should be paid to regulations and policies that
unnecessarily burden and disproportionately impact Florida’s
small businesses. The Office of Small Business Advocate and
Small Business Regulatory Advisory Council were created in 2008
to advocate for small business in Florida and provide agencies
with recommendations on proposed and existing rules that
may adversely impact small businesses, respectively.5 In line
with this charge, the OSBA has conducted extensive outreach
to identify and provide input on a number of regulatory and
other business climate issues. The OSBA has offered a number of
recommendations to address small and medium sized business
concerns, including:
Reducing regulatory overlap y
State tax rebates on telecom and utility yexpenses as an incentive for expansion
Capping maximum annual real estate tax yincreases on commercial property occupied by SMEs
Procurement assistance programs for small ybusinesses across the state
Elimination of state contract “bundling” y
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Recognizing that Florida competes against regional,
national, and global competitors and that delays
impact businesses’ bottom lines, Florida must
ensure that its regulatory systems are as efficient as
possible. Florida’s business community understands
the vital role that regulations, licensing, and
permitting processes can play in protecting public
safety and the environment—especially in a state
where natural amenities are so critical to supporting
economic activity.
Concerns arise over unnecessary duplication and
delays that significantly lengthen project timeliness
in Florida relative to other states. Regulatory
streamlining is needed at both the state and local
levels.
BUsiNess climATe RecommeNdATioN #3
Improve State and Local Regulatory Environment
ACTIOn ITEmS
improve and streamline permitting processes
Amendment 4 concerns
Address industry-specific regulatory issues impacting targeted industries
improve and streamline permitting processes
Improve awareness of state expedited permitting program. X
Florida has an expedited permitting process in place that may
not be widely known. Expedited permitting under 403.973, F.S.
allows significant economic development projects and projects
located within designated Brownfield areas to obtain expedited
review of all needed state and regional permit applications,
and, at the option of participating local governments, local
development permits or orders and comprehensive plan
amendments.6
Encourage local governments to review permitting X
processes to find opportunities to speed review and align
policies with economic development priorities. Regulatory
and permitting delays are not confined to the state level. Local
processes can sometimes add redundant, time consuming,
and conflicting requirements that slow projects. To help
address the issue, some cities and local economic development
organizations provide staff to guide companies through local
regulatory processes.
Amendment 4 concernsThe need to defeat Amendment 4 (the “Vote on Everything”
amendment) came up at every Roadmap regional planning forum
held across the state. If passed by voters, Amendment 4 would
require that tens of thousands of local land use changes be decided
by referendum. Florida’s business community, led by the Florida
Chamber of Commerce, is calling for the defeat of this proposal—
which could significantly slow major economic development projects,
hinder communities’ ability to respond to job creating opportunities,
and permanently damage our state’s business climate.
Address industry-specific Regulatory issues impacting Targeted industriesIn addition to addressing broad regulatory processes that
unnecessarily burden companies regardless of industry, Florida
should develop a mechanism for identifying and addressing industry-
specific regulatory activities that detract from its competitiveness as a
location for major and targeted industries.
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Tampa Bay Regional Forum, Tampa Bay
cASe IN PoINt: Florida Medical Device Facility Regulation
Florida boasts one of the nation’s largest medical device industries—composed of roughly 400 companies and more than 200,000 workers.
under federal law, establishments involved in the production and distribution of medical devices intended for market in the u.s. are required to register with FdA and submit to biennial inspection. Florida is currently one of only two states that requires an additional level of inspection by
state authorities. this requirement is not only duplicative, but sometimes conflicts with stringent national standards.
the Florida Medical Manufacturers’ Consortium and site selection consultants have indicated that this added layer of unnecessary regulation places the state’s medical manufacturers at a competitive disadvantage vis-à-vis other states.*
Footnotes for Business Climate for the Innovation Economy Section
1 Reference: U.S. Census Bureau Annual Survey of Manufacturers, and Florida TaxWatch http://www.floridataxwatch.org/resources/pdf/03172009EconomicImpactAnalysisFloridasManufacturingSector.pdf
2 Wu, Yonghong, The effects of state R&D tax credits in stimulating private R&D expenditure: a cross-state empirical analysis, Journal of Policy Analysis and Management, 24(4), 785-802, 2005; and Wu, Yonghong, State R&D tax credits and high-technology establishments, Economic Development Quarterly, 22(2), 136-48, 2008
3 For example, Tennessee offers refundable tax credits to offset qualified relocation expenses incurred in the establishment of a headquarters facility, addressing one of the most significant hurdles in recruiting a new company—the costs associated with relocating the business and certain employees to a new state. States such as Georgia and Texas not only aggressively market their incentives, but also have other attractive characteristics such as major international airports, strategic location making it easy to access to any point in the country, and an existing base of corporate headquarters.
4 Further, Bonds authorized by federal stimulus likely will have better utilization with a statewide bond issuing entity, and borrowers will not have financing delayed due to land use issues which are correctly handled through zoning and site plan reviews, not financing approvals. Providing statewide authority to Florida Development Finance Corporation does not curtail any bond issuance powers of local government and does better assure competitive pricing for bond issuance projects.
5 Florida Chapter 2008-149.
6 Details and eligibility requirements can be found in Enterprise Florida’s “Permit Streamlining Initiatives” Incentive Information Sheet.
7 The Florida Council of 100 and Florida Chamber of Commerce, Into the Storm: Framing Florida’s Looming Property Insurance Crisis, April 2009
8 Florida TaxWatch, Economic Impact Analysis of Florida’s Manufacturing Sector, March 2009
* For additional information, please refer to the Florida Medical Manufacturers’ Consortium white paper, “Florida Medical Device Facility Regulation”
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Florida is no longer a low cost state. A high level of
amenities, quality of life, talent, and other factors
have drawn new businesses and residents to the
state for decades—resulting in higher costs of
living and doing business.
While rising costs are a tribute to Florida’s
successful development, they must be kept to a
minimum. Florida must ensure that its business
costs remain competitive and predictable.
Bottom line factors such as taxes, labor costs,
insurance costs, and site and housing affordability
impact businesses’ location and expansion
decisions, as well as the state’s continued ability to
attract and retain talent.
BUsiNess climATe RecommeNdATioN #4
Provide Predictable, Competitive Business Costs
ACTIOn ITEmS
Address commercial and residential property insurance issues
support sales and use tax exemptions for Florida manufacturers
Address commercial and Residential property insurance issuesFlorida’s location, coastline, and warm weather mean it will always
face the threat of hurricanes. A healthy property insurance market
is therefore an important component of the state’s overall business
climate. Issues regarding the availability and cost of property
insurance, as well as the overexposure of the Florida Hurricane
Catastrophe (CAT) Fund, have remained leading business concerns
since the 2005 hurricane season and were mentioned at all Roadmap
regional planning forums. Businesses need predictable insurance
costs to allow for successful planning.
Adopt an approach to property insurance reform based X
on the following 4 principles: (1) risk determined rates,
(2) competitive markets, (3) increased mitigation, and (4)
exploring appropriate federal involvement.7 This approach
has been advocated by the Florida Chamber of Commerce
and Florida Council of 100—two of the state’s leading
business organizations.
support sales and Use Tax exemptions for Florida manufacturers The maintenance of Florida’s fifteen existing sales and use tax
exemptions for manufacturing inputs is crucial to the long-term
growth and competitiveness of manufacturers across all industry
clusters. According to a recent Florida TaxWatch study, “ … if the
identified manufacturing tax incentives are eliminated, it would result
in a net loss (after controlling for changes in government spending) of
more than 3,300 Florida jobs, $980 million in GSP, $2.3 billion in state
output, and $200 million in exported goods by 2018.”8 In addition,
according to the Manufacturers Association Florida, Florida is already
noncompetitive with sister states on tax policy for manufacturers
and the elimination of these exemptions would further tilt the tables
against us. In fact, the Manufacturers Association of Florida has
advocated for the expansion of sales and use tax exemptions for
manufacturing inputs.
(Please note that water and energy needs are discussed in the Growth
Leadership section of this plan.)
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