Florida Farm TEAM Card for Agriculture Sales Tax Exemption

by | Jul 14, 2023 | Ag in the News, Farm Equipment, General Agriculture, Regulations

All cattle fencing and cowpen supplies are now sales tax exempt after Senate Bill 1164 / House Bill 1279 became law on July 1, 2023.

 

On July 1, 2023, Senate Bill 1164 / House Bill 1279 became law as Florida Chapter 2023-154.  This bill covered a range of items that the Florida Department of Agriculture and Consumer Services (FDACS) will regulate.  One key part of this bill was the creation of the, “Farm Tax Exempt Agricultural Materials (TEAM) Card for use by farmers to claim applicable sales tax exemptions in lieu of certificates or affidavits.”  Florida Farm Bureau explained, “This card is meant to provide a more streamlined process for producers to receive the agricultural sales tax exemptions they are given in our state.”  Many producers in North Florida are familiar with Georgia’s “Gate Cards” that allow farmers to carry a card to provide to retail establishments proof of agricultural sales tax exemption in Georgia.  This year the Florida legislature created a similar system for Florida farmers and ranchers. The law states that “FDACS shall accept Florida Farm TEAM Card applications beginning on January 1, 2024.”

Another key component in Florida Chapter 2023-154 was the clarification of tax exemption for fencing and handling facilities.  Traditional fence supplies were included in the bill passed in 2022, but electric and temporary fences, as well as materials for handling facilities were left out of the previous law.   The tax exemption law now covers materials used to construct or repair permanent or temporary fencing used to contain, confine, or process livestock.  A more specific list is provided below.

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Florida Chapter 2023-154 states:

FLORIDA FARM TEAM CARD
(a) Notwithstanding any other law, a farmer whose property has been classified as agricultural pursuant to s. 193.461 or who has implemented agricultural best management practices adopted by the Department of Agriculture and Consumer Services pursuant to s. 403.067(7)(c)2. may apply to the department for a Florida farm tax exempt agricultural materials (TEAM) card to claim the applicable sales tax exemptions provided in this section. A farmer may present the Florida Farm TEAM card to a selling dealer in lieu of a certificate or affidavit otherwise required by this chapter…

(c) For items purchased tax exempt pursuant to this subsection, proof of acceptance by a selling dealer of a Florida farm TEAM card from a purchaser relieves the selling dealer of the responsibility of collecting the tax on the sale of such items, and the department shall look solely to the purchaser for recovery of the tax if it determines that the purchaser was not entitled to the exemption.

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What will this card cover?

  1. The primary purpose of the TEAM card will be to allow farmers to claim applicable sales tax exemptions in lieu of certificates or affidavits.  Many of these exemptions are not new, the card just makes transactions with retailers much smoother than keeping copies of documents in your glove box to educate people of the tax exempt status for each specific kind of products.
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  2. Fencing and processing facility supplies will be covered by the new Farm TEAM card.    As of July 1, 2023, specific products now included in agricultural tax exemption include:
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    • Fencing, lumber, posts, fence wire,  and panels.
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    • Electric fencing supplies were also included in the updated law:  Energizers and fence chargers, electric fence wire, tape or rope, ground rods, connector clamps, and insulators.
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    • Even premixed concrete for posts, nails, screws staples, and hinges for gates.
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  3. Older tax exemptions will also be covered by the new Farm TEAM card.  The following are examples of Florida agricultural sales tax exemptions approved by the legislature in previous years.  (Florida Farm Bureau provides a complete list, along with links to the Department of Revenue’s Exemption Certificates.)
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    • Animal and Aquaculture Health Products
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    • Off-road (dyed) diesel fuel
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    • Electricity Used for Agricultural Purposes
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    • Trailers Used in Agricultural Production
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    • Fertilizers, Insecticides, Fungicides, Pesticides and Herbicides used for Commercial Production
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    • Power Farm Equipment – Accessory Parts, Accessories, Repairs & Equipment Used Through the Storage Phase of Production
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    • Seedlings, Cuttings & Plants Used to Produce Food for Human Consumption
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All of these sales tax exemptions listed above are currently available to farmers and ranchers.   The TEAM cards, that will be issued starting in 2024, will make the transactions at supply dealers much simpler.  Until the TEAM cards are issued, farmers and ranchers will still have to provide the specific product Exemption Certificates and Tax Information Publications (TIP) to retailers for their records.

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More information can be found in the following references used for this article:
Florida Farm Bureau Agricultural Sales Tax Exemption Certificates & Tax Information Publications (TIP) provided by the Florida Department of Revenue

 

2023 Exemption for Fencing Used in Agricultural Operations Expanded – Tax Information Publication (TIP) & Tax Exemption Certificate

 

Florida Statue Chapter 212 – TAX ON SALES, USE, AND OTHER TRANSACTIONS

 

Florida Chapter 2023-154 (Florida Team Cards are only a portion of the total bill signed into law by the Governor effective July 1, 2023)
Doug Mayo
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