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.
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.
