Florida Offers Pallet Tax Break

Shippers who rent or lease pallets in Florida may qualify for an exemption from the state’s sales tax.

The Florida Department of Revenue said manufacturers do not pay a sales tax on the pallets they purchase and that those who lease pallets should not be unfairly singled out.

The exemption applies to pallets leased for one-time movements.

Florida’s ruling comes after lobbying from CHEP America, an international pallet and container pooling company that has its headquarters in Orlando, Fla.

“Simply put, the elimination of the sales and usage taxes on pallet and container leasing will take additional costs out of the supply chain,” said Mike Helm, CHEP America’s senior vice president for government relations.

CHEP America leases plastic pallets, which are reused. This eliminates the waste of one-time wooden pallets, Helm said.

Brian Beattie, vice president of marketing for CHEP America, said truckers usually don’t rent pallets, but that the carrier industry will see indirect benefits from the sales tax exemption.

CHEP America has vowed to use Florida’s decision as a springboard to persuade other states to get rid of their sales taxes on pallet leasing.

“We’ll keep knocking on doors one at a time and hopefully get similar rulings in other states,” said Beattie.