Bill Text: FL S0312 | 2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Agriculture

Spectrum: Bipartisan Bill

Status: (Failed) 2014-05-02 - Died in Messages, companion bill(s) passed, see CS/HB 7091 (Ch. 2014-150) [S0312 Detail]

Download: Florida-2014-S0312-Introduced.html

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       Florida Senate - 2014                                     SB 312
       
       
        
       By Senator Simpson
       
       
       
       
       
       18-00108A-14                                           2014312__
    1                        A bill to be entitled                      
    2         An act relating to agriculture; amending s. 193.461,
    3         F.S.; providing that participation in a water
    4         retention program may be considered a nonincome
    5         producing use under certain circumstances; providing a
    6         date by which such classification is repealed;
    7         amending s. 212.02, F.S.; revising and providing
    8         definitions; amending s. 212.0501, F.S.; providing
    9         that certain uses of diesel fuel by a qualified
   10         agricultural producer are exempt from the sales and
   11         use tax imposed under ch. 212, F.S.; deleting a
   12         requirement that a purchaser or lessee sign an
   13         exclusive use certificate; amending s. 212.08, F.S.;
   14         providing that the use of certain farm equipment by a
   15         qualified agricultural producer is exempt from the
   16         sales and use tax imposed under ch. 212, F.S.;
   17         deleting a requirement that a purchaser, renter, or
   18         lessee sign an exclusive use certificate; providing
   19         that certain items in agricultural use, certain nets,
   20         gas or electricity used for agricultural purposes, and
   21         growth enhancers or performance enhancers used by a
   22         qualified agricultural producer for cattle are exempt
   23         from the sales and use tax imposed under ch. 212,
   24         F.S.; deleting a requirement that a purchaser or
   25         lessee of certain items in agricultural use or certain
   26         nets sign an exclusive use certificate; providing that
   27         a qualified agricultural producer is exempt from sales
   28         and use tax imposed on feeds for poultry, ostriches,
   29         and livestock; providing that certain products are
   30         exempt for use in home vegetable gardens; requiring a
   31         purchaser or lessee to sign an exclusive use
   32         certificate; creating s. 212.0802, F.S.; providing
   33         criteria for a qualified agricultural producer;
   34         requiring a qualified agricultural producer to apply
   35         for an agricultural sales and use tax exemption
   36         certificate from the Department of Revenue; requiring
   37         the department to issue a wallet-sized card containing
   38         the information provided on the tax exemption
   39         certificate; authorizing the department to adopt
   40         rules, establish an oversight board, direct staff, and
   41         charge annual fees; providing criteria for the
   42         department to determine eligibility for designation as
   43         a qualified agricultural producer; providing that
   44         possession by a seller, lessor, or other dealer of a
   45         written exemption certification by the purchaser,
   46         renter, or lessee relieves the seller, lessor, or
   47         dealer from the responsibility of collecting tax on
   48         nontaxable amounts; providing an effective date.
   49  
   50  Be It Enacted by the Legislature of the State of Florida:
   51  
   52         Section 1. Subsection (7) of section 193.461, Florida
   53  Statutes, is amended to read:
   54         193.461 Agricultural lands; classification and assessment;
   55  mandated eradication or quarantine program.—
   56         (7)(a) Lands classified for assessment purposes as
   57  agricultural lands which are taken out of production by a any
   58  state or federal eradication or quarantine program shall
   59  continue to be classified as agricultural lands for the duration
   60  of such program or successor programs. Lands under these
   61  programs which are converted to fallow, or otherwise nonincome
   62  producing uses shall continue to be classified as agricultural
   63  lands and shall be assessed at a de minimis value of up to no
   64  more than $50 per acre, on a single year assessment methodology;
   65  however, lands converted to other income-producing agricultural
   66  uses permissible under such programs shall be assessed pursuant
   67  to this section. Land under a mandated eradication or quarantine
   68  program which is diverted from an agricultural to a
   69  nonagricultural use shall be assessed under s. 193.011.
   70         (b) Participation in a water retention program sponsored by
   71  a water management district which requires flooding of land that
   72  is assessed at a de minimis value under paragraph (a) is
   73  considered a nonincome-producing use if payments to the owner
   74  under the program do not exceed the reasonable expenses
   75  associated with program participation. This paragraph expires on
   76  December 31, 2020.
   77         Section 2. Subsections (30) and (32) of section 212.02,
   78  Florida Statutes, are amended, and subsection (35) is added to
   79  that section, to read:
   80         212.02 Definitions.—The following terms and phrases when
   81  used in this chapter have the meanings ascribed to them in this
   82  section, except where the context clearly indicates a different
   83  meaning:
   84         (30) “Power farm equipment” means moving or stationary
   85  equipment involved in agricultural production which that
   86  contains within itself the means for its own propulsion or power
   87  and moving or stationary equipment that is dependent upon an
   88  external power source to perform its functions.
   89         (32) “Agricultural production” means the production of
   90  plants and animals useful to humans, including the preparation,
   91  planting, cultivating, irrigating, or harvesting, transporting,
   92  or storing of these products or any other practices necessary to
   93  accomplish production through the first point of sale harvest
   94  phase, and includes aquaculture, horticulture, floriculture,
   95  viticulture, forestry, dairy, livestock, poultry, bees, and any
   96  and all forms of farm products and farm production.
   97         (35) “Qualified agricultural producer” means a producer of
   98  agricultural commodities that meets one of the criteria
   99  specified in s. 212.0802(1).
  100         Section 3. Subsections (3) and (5) of section 212.0501,
  101  Florida Statutes, are amended to read:
  102         212.0501 Tax on diesel fuel for business purposes;
  103  purchase, storage, and use.—
  104         (3) For purposes of this section, “consumption, use, or
  105  storage by a trade or business” does not include those uses of
  106  diesel fuel specifically exempt on account of residential
  107  purposes; diesel fuel used or in a any tractor, a vehicle, or
  108  other equipment used by a qualified agricultural producer
  109  exclusively on a farm or for processing farm products on the
  110  farm, no part of which diesel fuel is used in any licensed motor
  111  vehicle on the public highways of this state; or the purchase or
  112  storage of diesel fuel held for resale.
  113         (5) Diesel fuel upon which the fuel taxes pursuant to
  114  chapter 206 have been paid is exempt from the tax imposed by
  115  this chapter. Liquefied petroleum gas or other fuel used by a
  116  qualified agricultural producer to heat a structure in which
  117  started pullets or broilers are raised is exempt from the tax
  118  imposed by this chapter; however, such exemption shall not be
  119  allowed unless the purchaser or lessee signs a certificate
  120  stating that the fuel to be exempted is for the exclusive use
  121  designated herein.
  122         Section 4. Subsection (3), paragraphs (a), (e), and (l) of
  123  subsection (5), and paragraph (d) of subsection (7) of section
  124  212.08, Florida Statutes, are amended, and paragraph (kkk) is
  125  added to subsection (7) of that section, to read:
  126         212.08 Sales, rental, use, consumption, distribution, and
  127  storage tax; specified exemptions.—The sale at retail, the
  128  rental, the use, the consumption, the distribution, and the
  129  storage to be used or consumed in this state of the following
  130  are hereby specifically exempt from the tax imposed by this
  131  chapter.
  132         (3) EXEMPTIONS; CERTAIN FARM EQUIPMENT.—A qualified
  133  agricultural producer is exempt from There shall be no tax on
  134  the sale, rental, lease, use, consumption, or storage for use in
  135  this state of power farm equipment, irrigation equipment,
  136  repairs to farm equipment, and replacement parts for farm
  137  equipment used exclusively on a farm or in a forest in the
  138  agricultural production of crops or products as produced by
  139  those agricultural industries included in the definition of the
  140  term agriculture in s. 570.02(1), or such equipment used for
  141  fire prevention and suppression work with respect to such crops
  142  or products. Harvesting may not be construed to include
  143  processing activities. This exemption is not forfeited if a
  144  qualified agricultural producer moves by moving farm equipment
  145  between farms or forests. However, this exemption shall not be
  146  allowed unless the purchaser, renter, or lessee signs a
  147  certificate stating that the farm equipment is to be used
  148  exclusively on a farm or in a forest for agricultural production
  149  or for fire prevention and suppression, as required by this
  150  subsection. Possession by a seller, lessor, or other dealer of a
  151  written certification by the purchaser, renter, or lessee
  152  certifying the purchaser’s, renter’s, or lessee’s entitlement to
  153  an exemption permitted by this subsection relieves the seller
  154  from the responsibility of collecting the tax on the nontaxable
  155  amounts, and the department shall look solely to the purchaser
  156  for recovery of such tax if it determines that the purchaser was
  157  not entitled to the exemption.
  158         (5) EXEMPTIONS; ACCOUNT OF USE.—
  159         (a) Items in agricultural use and certain nets.—A qualified
  160  agricultural producer is exempt There are exempt from the tax
  161  imposed by this chapter on nets designed and used exclusively by
  162  commercial fisheries; disinfectants, fertilizers, insecticides,
  163  pesticides, herbicides, fungicides, and weed killers used for
  164  application on crops or groves, including commercial nurseries
  165  and home vegetable gardens, used in dairy barns or on poultry
  166  farms for the purpose of protecting poultry or livestock, or
  167  used directly on poultry or livestock; portable containers, or
  168  movable receptacles in which portable containers are placed,
  169  used for processing farm products; field and garden seeds,
  170  including flower seeds; nursery stock, seedlings, cuttings, or
  171  other propagative material purchased for growing stock; seeds,
  172  seedlings, cuttings, and plants used to produce food for human
  173  consumption; cloth, plastic, and other similar materials used on
  174  a farm for shade, mulch, or protection from frost or insects on
  175  a farm; generators used on poultry farms; and liquefied
  176  petroleum gas or other fuel used to heat a structure in which
  177  started pullets or broilers are raised; however, such exemption
  178  shall not be allowed unless the purchaser or lessee signs a
  179  certificate stating that the item to be exempted is for the
  180  exclusive use designated herein. Also exempt are and cellophane
  181  wrappers, glue for tin and glass used by (apiarists), mailing
  182  cases for honey, shipping cases, window cartons, and baling wire
  183  and twine used for baling hay, when used by a qualified
  184  agricultural producer farmer to contain, produce, or process an
  185  agricultural commodity.
  186         (e) Gas or electricity used for certain agricultural
  187  purposes.—
  188         1. A qualified agricultural producer is exempt from the tax
  189  imposed by this chapter on butane gas, propane gas, natural gas,
  190  and all other forms of liquefied petroleum gases are exempt from
  191  the tax imposed by this chapter if such gas is used in any
  192  tractor, vehicle, or other farm equipment that which is used
  193  exclusively on a farm or for processing farm products on the
  194  farm. Such and no part of which gas may not be is used in any
  195  vehicle or equipment driven or operated on the public highways
  196  of this state; however,. this restriction does not apply to the
  197  movement of farm vehicles or farm equipment between farms. The
  198  transporting of bees by water and the operating of equipment
  199  used in the apiary of a beekeeper is also deemed an exempt use.
  200         2. Electricity used by a qualified agricultural producer
  201  directly or indirectly for production, packing, or processing of
  202  agricultural products on the farm, or used directly or
  203  indirectly in a packinghouse, is exempt from the tax imposed by
  204  this chapter. As used in this subsection, the term
  205  “packinghouse” means any building or structure where fruits,
  206  vegetables, or meat from cattle or hogs is packed or otherwise
  207  prepared for market or shipment in fresh form for wholesale
  208  distribution. The exemption does not apply to electricity used
  209  in buildings or structures where agricultural products are sold
  210  at retail. This exemption applies only if the electricity used
  211  for the exempt purposes is separately metered. If the
  212  electricity is not separately metered, it is conclusively
  213  presumed that some portion of the electricity is used for a
  214  nonexempt purpose, and all of the electricity used for such
  215  purposes is taxable.
  216         (l) Growth enhancers or performance enhancers for cattle.—A
  217  qualified agricultural producer is There is exempt from the tax
  218  imposed by this chapter on the sale of performance-enhancing or
  219  growth-enhancing products for cattle.
  220         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
  221  entity by this chapter do not inure to any transaction that is
  222  otherwise taxable under this chapter when payment is made by a
  223  representative or employee of the entity by any means,
  224  including, but not limited to, cash, check, or credit card, even
  225  when that representative or employee is subsequently reimbursed
  226  by the entity. In addition, exemptions provided to any entity by
  227  this subsection do not inure to any transaction that is
  228  otherwise taxable under this chapter unless the entity has
  229  obtained a sales tax exemption certificate from the department
  230  or the entity obtains or provides other documentation as
  231  required by the department. Eligible purchases or leases made
  232  with such a certificate must be in strict compliance with this
  233  subsection and departmental rules, and any person who makes an
  234  exempt purchase with a certificate that is not in strict
  235  compliance with this subsection and the rules is liable for and
  236  shall pay the tax. The department may adopt rules to administer
  237  this subsection.
  238         (d) Feeds.—For a qualified agricultural producer, feeds for
  239  poultry, ostriches, and livestock, including racehorses and
  240  dairy cows, are exempt.
  241         (kkk) Home vegetable gardens.—Disinfectants, fertilizers,
  242  insecticides, pesticides, herbicides, fungicides, and weed
  243  killers used for application on home vegetable gardens are
  244  exempt; however, such exemption is not allowed unless the
  245  purchaser or lessee signs a certificate stating that the item to
  246  be exempted is for the exclusive use designated herein.
  247         Section 5. Section 212.0802, Florida Statutes, is created
  248  to read:
  249         212.0802 Qualified agricultural producer certification.—
  250         (1) A qualified agricultural producer is a person or entity
  251  that meets one of the following criteria:
  252         (a) The person or entity is the owner or lessee of
  253  agricultural land or other real property from which at least
  254  $2,500 of agricultural commodities are produced and sold during
  255  the year.
  256         (b) The person or entity is in the business of providing
  257  for-hire custom agricultural services, including, but not
  258  limited to, plowing, planting, harvesting, growing, animal
  259  husbandry or the maintenance of livestock, raising or
  260  substantially modifying agricultural commodities, or the
  261  maintenance of agricultural land from which at least $2,500 of
  262  such services are provided during the year.
  263         (c) The person or entity is the owner of land assessed as
  264  agricultural property under s. 193.461.
  265         (d) The person or entity is in the business of producing
  266  long-term agricultural commodities, including, but not limited
  267  to, timber, pulpwood, citrus, and horticultural or other
  268  multiyear agricultural or farm products, from which there might
  269  not be annual income. The applicant must demonstrate that
  270  sufficient volumes of such multiyear agricultural products will
  271  be produced to generate at least $2,500 in sales annually in the
  272  future.
  273         (e) The person or entity is actively engaged in the
  274  production of agricultural commodities and has created, or will
  275  have created, sufficient volumes to generate at least $2,500 in
  276  annual sales. The applicant must establish such production to
  277  the satisfaction of the Department of Revenue.
  278         (2) A qualified agricultural producer that meets the
  279  criteria under subsection (1) may apply to the Department of
  280  Revenue to request an agricultural sales and use tax exemption
  281  certificate. Such certificate must contain an exemption number.
  282  To facilitate the use of the exemption certificate, the
  283  Department of Revenue shall also issue a wallet-sized card
  284  containing the same information provided on the exemption
  285  certificate.
  286         (3) The Department of Revenue may adopt rules governing the
  287  issuance of agricultural exemption certificates and the
  288  administration of this section. The Department of Revenue may
  289  establish an oversight board, direct staff, and charge annual
  290  fees of at least $15 but not more than $25 per year.
  291         (4) The Department of Revenue may use any of the following
  292  criteria as a tool to determine eligibility under this section:
  293         (a) Business activity on IRS Schedule F (Form 1040), Profit
  294  or Loss From Farming.
  295         (b) Farm rental activity on IRS Form 4835, Farm Rental
  296  Income and Expenses, or Schedule E (Form 1040), Supplemental
  297  Income and Loss.
  298         (c) Proof of ownership of land assessed as agricultural
  299  property under s. 193.461.
  300         (5) Possession by a seller, lessor, or other dealer of a
  301  written certification by the purchaser, renter, or lessee
  302  certifying the purchaser’s, renter’s, or lessee’s entitlement to
  303  an exemption permitted by this section relieves the seller from
  304  the responsibility of collecting the tax on the nontaxable
  305  amounts, and the department shall look solely to the purchaser
  306  for recovery of such tax if it determines that the purchaser was
  307  not entitled to the exemption.
  308         Section 6. This act shall take effect July 1, 2014.