TIP # 00A01-29
DATE ISSUED: 09/20/00

Changes In Agricultural And Fill Dirt Exemptions Reduction In The Partial Exemption Rate For Self-Propelled, Power-Drawn, Or Power-Driven Farm Equipment Effective January 1, 2001,the tax rate on self-propelled, power-drawn, or power-driven farm equipment is reduced from 3 percent to 2.5 percent.

The reduced tax rate applies to the sale, rental, or lease of self-propelled, power-drawn, or power-driven farm equipment used in any stage of agricultural production. This partial exemption is not forfeited by moving qualifying equipment between farms or forests. Repairs to farm equipment or purchases of replacement parts for such equipment do not qualify for the partial exemption.

The term "agricultural production" is defined as the production of plants and animals useful to humans, including the preparation, planting, cultivating, or harvesting of these products or any other practices necessary to accomplish production through the harvest phase, and includes aquaculture, horticulture, floriculture, viticulture, forestry, dairy, livestock, poultry, bees, and any and all forms of farm products and farm production.

This partial exemption is not allowed unless the purchaser, renter, or lessee signs a certificate stating that the farm equipment is to be used exclusively on a farm or in a forest for agricultural production or for fire prevention and suppression, as required by s. 212.08(3), F.S. The dealer is relieved of the responsibility of collection of the tax on the nontaxable amounts if he or she retains a copy of this written certification. In these cases, if the Department of Revenue determines that the purchaser was not entitled to the partial exemption, the Department will look only to the purchaser for recovery of the tax.

Effective July 1, 2000, moveable receptacles in which portable containers are placed when used for processing farm products are exempt.

The exemption for moveable receptacles is not allowed unless the purchaser, renter, or lessee signs a certificate stating that the moveable receptacles are to be used exclusively for processing farm products, as required by s. 212.08(5)(a), F.S. The dealer who accepts the certificate is relieved of the responsibility of collection of the tax if he or she retains a copy of this written certification. In these cases, if the Department of Revenue determines that the purchaser was not entitled to the partial exemption, the Department will look only to the purchaser for recovery of the tax.

A person securing rock, shell, fill dirt, or similar materials from a location that he or she owns or leases for use on his or her own property is not required to pay use tax on such materials. Effective July 1, 2000, a corporation or an affiliated group is included in this exemption when it secures rock, shell, fill dirt, or similar materials secured from a location it owns to be used on property it owns.