The budget Governor Rick Scott is proposing eliminating sales taxes paid on new manufacturing equipment, the governor said Wednesday. Scott, who has talked about the proposal on a few occasions in the last few weeks, said many companies would rather make equipment purchases in other states.

“Our current tax policy puts the state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions,” Scott said Wednesday. “Knocking down this barrier to job creation will create more job opportunities for Florida families”

The elimination of the tax, which Scott said was a top priority in the budget, will reduce state tax collections by $115 million, but Scott said it would save companies about $140 million. There already is a sales tax exemption for new equipment, but to qualify companies must prove they’ve increased their “productive output” by 5 percent after buying the equipment.