New Agricultural Sales Tax Exemptions Go Into Effect Today

July 2, 2015

With the dawning of the new fiscal year on July 1, Florida’s farmers and ranchers can take advantage of one of Farm Bureau’s legislative victories from the 2015 legislative session.  A broad tax cut package, HB 33A passed the legislature during last month’s special session and signed by Governor Scott on June 16.  This package included a substantial cut for agriculture.

Starting today, Florida’s farmers and ranchers can begin saving what is estimated to be more than $13 million in state and local taxes each year.

Here is a breakdown of what is now exempt from sales tax and the estimated annual state sales tax savings:

·    Irrigation parts and repairs—$2.4 million
·    Parts and repairs for power farm equipment—$6.7 million
·    Equipment used to store raw products on the farm after harvest—$0.2 million
·    Farm trailers weighing less than 12,000 pounds—$1.3 million
·    Stakes used in plant production—$0.6 million

The Department of Revenue has issued three Tax Information Publications that provide details about these new exemptions and the certificates needed to obtain the exemptions. You can access these here:

Exemption for Farm Trailers Weighing 12,000 Pounds or Less

Qualifying Power Farm Equipment Exemption Expanded to Include Replacement Parts, Accessories, Repairs, and Power Farm Equipment Used Through the Storage Phase of Production

Sales of Stakes Used to Support Plants During Agricultural Production

If you have questions please contact the State Legislative Affairs office in Tallahassee at (850) 222-2557.