Jan 9, 2024
Florida legislators introduce ag tax exemptions

Florida’s Commissioner of Agriculture and state lawmakers are proposing to eliminate multiple taxation of agricultural production by annual local property taxes.

Florida Commissioner of Agriculture Wilton Simpson, Senator Jay Collins, and Representative Danny Alvarez announced the filing of a joint resolution, HJR 1251 and SJR 1560, to amend the Florida Constitution to eliminate multiple taxation of agricultural production by annual local property taxes.

The proposed constitutional amendment creates a total tax exemption of tangible personal property — such as farm machinery, equipment, and implements — on property classified as agricultural.

Florida Department of Agriculture FDACS If adopted, the constitutional amendment will help alleviate the financial burden on Florida’s agriculture producers, help incentivize the growth of agricultural production in the state, and ease increasing food costs to consumers by lowering the cost of production.

The proposal is being filed as a joint resolution in both the Florida House of Representatives and Florida Senate and requires support by three-fifths of the membership of each chamber. If adopted by 60% of the electors voting on the measure in the 2024 general election, the amendment will go into effect.

Currently, Article VII, Section 3(e)(1) provides an exemption from ad valorem taxation of up to $25,000 on all property subject to tangible personal property taxes. Tangible personal property is defined as all goods, property other than real estate, and other articles of value that the owner can physically possess and have intrinsic value.

Examples of what is included when filing a tangible personal property tax return include:

  • Goods, chattels, and other articles of value, except certain vehicles
  • Inventory held for lease
  • Equipment on some vehicles
  • Personally owned property used in the business
  • Fully depreciated items

Florida agriculture — and its over 47,000 farms and ranches — produces more than 300 commodities, contributes more than $180 billion to the state’s economy, and helps employ more than 2.5 million people, according to the Florida Department of Agriculture.

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