January 1 marked the beginning of when Florida farmers can start applying for the Florida Farm Tax Exempt Agricultural Materials (TEAM) Card. The TEAM Card is a physical card that replaces paper exemption certificates.
What Does the Florida Farm TEAM Card Do
Prior to the Florida Farm TEAM Card, agricultural producers looking to take advantage of the tax-exempt status of agricultural materials would need to fill out a signed Tax Exemption Certificate and present it to the seller of the ag materials. The Tax Exemption Certificate was required to state, as a guarantee, that the items purchased were bought to be used for a specific agricultural use. Often, the entire process became so mired in paperwork that the benefits were outweighed by the requirements.
In March of last year, FDACS said, “The current process that Florida farmers are forced to participate in to receive the tax relief they are currently afforded has become so onerous that they are crossing state lines to participate in neighboring state programs that aren’t as burdensome.”
The Florida Farm TEAM Card aims to change that.
Instead of having to fill out and present a Tax Exemption Certificate for every tax-exempt ag purchase, Florida’s ag producers can apply for and receive a Florida Farm TEAM Card that they can present to sellers as proof of the cardholder’s tax-exempt status. The TEAM Card is an actual card that will fit inside a wallet like a driver’s license or credit card.
Examples of Tax-Exempt Ag Materials
The Florida Farm Team Card can be used on an array of materials that are exempt from taxes as long as they will be used for agricultural purposes. Examples of such materials include:
- Inputs like fertilizers, insecticides, fungicides, pesticides, and herbicides.
- Animal health products
- Nursery stock, seedlings, cuttings, or other propagative material for growing stock
- Fencing materials, such as lumber or steel for posts or rails, fence wire, panels, gates, nails, screws, staples, and hinges, etc.
- Fuels like liquefied petroleum gas, diesel, kerosene, butane, propane, or natural gas used for agricultural purposes in any tractor, vehicle, or other farm equipment
- Power farm equipment or irrigation equipment for exclusive use in the agricultural production of crops or products
- Feed and seed
- Find the complete list of tax-exempt materials at https://www.fdacs.gov/Agriculture-Industry/Florida-Farm-Tax-Exempt-Agricultural-Materials-TEAM-Card
There is no cost to apply for a TEAM Card. An approved card is good for five years; after five years, the Florida Department of Revenue will either issue a renewal card based on “available information” or will contact the cardholder with a request for more information. Card applicants can get up to 10 cards so they can be used by employees as well.
Florida farmers can still use Tax Exemption Certificates if desired, and they may still need to do so for online retailers. More information can be found on the FDACS website.
BIO: Mike Roberts is the Vice President of the Frostproof, Fla.-based Griffin Fertilizer Co. Roberts joined the company in November 2011. He has spent the majority of his career in the fertilizer/agchem industry. Roberts earned a Bachelor of Science degree in citrus production from Florida Southern College in Lakeland. For more information, visit griffinfertilizer.com.
This column is sponsored by Griffin Fertilizer Co., and the opinions expressed herein may not reflect those of CFAN or of its advertisers.