The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: SB 2-C
INTRODUCER: Senator Simon
SUBJECT: Disaster Relief
DATE: November 2, 2023 REVISED: 11/3/23
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Parsons Yeatman FP Favorable
I. Summary:
To mitigate the impacts of recent disasters affecting the state, SB 2-C does the following:
Provides that certain agricultural equipment that was unable to be used for 60 days due to
Hurricane Idalia would be assessed at salvage value on the 2024 property tax roll.
Grants refunds of sales tax paid on fencing materials used to repair or replace farm fences on
lands classified as agriculture and were damaged due to Hurricane Idalia.
Grants refunds of sales tax paid on building materials used to repair or replace nonresidential
farm buildings damaged as a result of Hurricane Idalia
Grants refunds of motor fuel taxes used for agricultural shipments and debris removal after
Hurricane Idalia.
Funds applications current as of October 15 for the My Safe Florida Home program and
directs the Department of Financial Services to stop taking applications when available
funding is exhausted.
Authorizes the Division of Emergency Management (DEM) to enter into agreements with
eligible local governments impacted by Hurricane Idalia to provide funds for the non-federal
share of the FEMA reimbursement program.
Authorizes the Department of Commerce to extend loans made under the Local Government
Emergency Revolving Bridge Loan program from 24 months to 5 years.
Directs the Florida Housing Finance Corporation to use appropriated funds for the Hurricane
Housing Recovery Program within eligible counties impacted by Hurricane Idalia and
provides the activities for which funds may be used.
Directs the DEM to provide grants and loans for hurricane repair and recovery projects
within certain counties designated under the FEMA disaster declaration for Hurricane Idalia.
Directs the Department of Transportation to fund transportation projects within fiscally
constrained counties designated under the FEMA disaster declaration for Hurricane Idalia.
Extends the prohibition on burdensome or restrictive local building processes enacted in the
2023 session in response to Hurricanes Ian and Nicole to October 1, 2026, and specifies that
such restrictions apply to certain counties and the municipalities therein.
BILL: SB 2-C Page 2
Directs the DEM to provide planning and design grants to fiscally constrained counties
designated in the FEMA disaster declaration for Hurricane Idalia for new facilities for
emergency operations.
Authorizes the Department of Commerce to award grants to fiscally constrained counties
impacted by Hurricane Idalia under the Rural Infrastructure Fund.
Creates the Agriculture and Aquaculture Producers Natural Disaster Recovery Loan Program
within the Department of Agriculture and Consumer Services (DACS) to provide
low-interest or interest-free loans to agricultural producers that have experienced damage or
destruction from a declared natural disaster.
Authorizes the DACS to award cost sharing grants to assist timber landowners with site
preparation and tree replanting in counties impacted by Hurricane Idalia.
For the 2023-2024 fiscal year, the bill appropriates:
$176,170,000 in nonrecurring funds from the General Revenue Fund to the DFS provide
mitigation grants under the My Florida Safe Home Program for applications submitted on or
before October 15, 2023, and $5,280,100 in nonrecurring funds from the General Revenue
fund for administrative costs for implementation of the mitigation grants.
$30 million in nonrecurring funds from the General Revenue Fund to the DEM to provide the
required matching funds for Federal Emergency Management Agency (FEMA) Public
Assistance grants related to Hurricane Idalia.
$25 million in nonrecurring funds from the Local Government Housing Trust Fund to the
Florida Housing Finance Corporation for hurricane recovery purposes related to Hurricane
Idalia.
$50 million in nonrecurring funds from the General Revenue Fund to the DEM to provide
grants or loans for hurricane repair and recovery projects related to Hurricane Idalia.
$10 million in nonrecurring funds from the State Transportation Trust Fund to the
Department of Transportation for transportation projects under the Small County Outreach
Program for projects related to related to Hurricane Idalia.
$3 million in nonrecurring funds from the General Revenue Fund to the DEM to provide
planning and design grants for new emergency operations facilities in fiscally constrained
counties impacted by Hurricane Idalia.
$5 million in nonrecurring funds from the General Revenue Fund to the Department of
Commerce for the Rural Infrastructure Fund for projects in fiscally constrained counties
impacted by Hurricane Idalia.
$75 million in nonrecurring funds from the General Inspection Trust Fund within the DACS
as fixed capital outlay for the Agriculture and Aquaculture Producers Natural Disaster
Recovery Loan Program after the sum is transferred from the General Revenue Fund into the
General Inspection Trust Fund.
$37.5 million in nonrecurring funds from the General Revenue Fund to the DACS as fixed
capital outlay to administer a cost-sharing grant program to assist timber landowners in
eligible counties impacted by Hurricane Idalia.
See Section V., Fiscal Impact Statement, for Revenue Estimating Conference analyses on
individual components of the bill.
The bill takes effect upon becoming a law.
BILL: SB 2-C Page 3
II. Present Situation:
Hurricane Idalia
Hurricane Idalia made landfall on August 30, 2023, along the Florida Big Bend coast at Keaton
Beach as a category 3 hurricane with maximum wind speeds of 125 mph.1 The system remained
a hurricane as it impacted a large swath of north Florida before crossing into Georgia as a
category 2 hurricane.2 Idalia was only the third major hurricane on record to make landfall in the
Big Bend region and the strongest to make landfall since the Cedar Key hurricane in 1896.3
Hurricane Idalia brought significant storm surge and riverine flooding on Florida’s west coast,
including a peak storm surge level of 8 feet at Steinhatchee and a 6.9 foot storm surge that
devastated Cedar Key.4 Other areas generally experienced flooding of 3 to 4 feet. Preliminary
insured losses in Florida are estimated to be at least $9.6 billion.5
Prior to landfall, on August 26, 2023, Governor DeSantis issued Executive Order 23-171,
declaring a state of emergency for several counties due to the continuing recovery efforts from
Hurricanes Ian and Nicole and the dangers of Invest 93L, which was predicted to develop and
organize into a tropical storm as it moved over the Caribbean Sea and Gulf of Mexico.6
Governor DeSantis requested a major disaster declaration for Hurricane Idalia on August 30,
2023, which was approved on August 31, 2023, making federal disaster assistance available for
impacted Florida counties.7
Agricultural Losses Related to Hurricane Idalia
Hurricane Idalia also had a significant impact on the agricultural production in the region. More
than 3.3 million acres of Florida’s agricultural lands were affected, of which almost 74 percent
was grazing land.8 The commodity groups most affected by the hurricane were animals and
animal products and field and row crops. The University of Florida’s Institute of Food and
Agricultural Sciences (UF/IFAS) predicts that agricultural losses from Hurricane Idalia will
likely be between $78.8 million and $370.9 million.9 Although UF/IFAS has attempted to
provide a rapid assessment of agricultural production losses in the state, it notes that other losses
may have been incurred by impacted agricultural producers and are not included in its
assessment, including:
1
Emily Powell, Florida Climate Center, Hurricane Idalia Preliminary Post-Storm Summary, Sept. 7, 2023, (last visited Oct.
26, 2023).
2
Christa D. Court, Xiaohui Qiao, Mengming Li, Kelsey McDaid, Food and Resource Economics Department, University of
Florida, Institute of Food and Agricultural Sciences (UF/IFAS), Preliminary Assessment of Agricultural Losses and Damages
3
Supra note 1.
4
Id.
5
Id.
6
State of Florida Executive Order 23-175, available at https://www.flgov.com/wp-content/uploads/2023/08/EO-23-175-1.pdf
(last visited Oct. 26, 2023).
7
Executive Office of the Governor, Governor Ron DeSantis Announces Approval of Florida’s Major Disaster Declaration,
Aug. 31, 2023, available at https://www.flgov.com/2023/08/31/governor-ron-desantis-announces-approval-of-floridas-major-
disaster-declaration-2/ (last visited on Oct. 26, 2023). See also, Federal Emergency Management Administration, President
Joseph R. Biden, Jr. Approves Major Disaster Declaration for Florida, Aug. 31, 2023, available at
https://www.fema.gov/press-release/20230831/president-joseph-r-biden-jr-approves-major-disaster-declaration-florida (last
visited on Oct. 26, 2023).
8
Supra note 2.
9
Id.
BILL: SB 2-C Page 4
Damage to agricultural-related infrastructure that will need to be repaired or replaced;
Stored inputs, such as seeds and fertilizer, or stored harvested products that were damaged or
destroyed;
Expenses related to Hurricane Idalia-specific preparations ahead of the storm and clean-up
after the storm;
Production losses that may carry over to 2024 and beyond due to damages to infrastructure or
other effects of the storm;
Production losses for agricultural operations that specialize in post-harvest processing,
packing, or distribution;
Value of timber or forestry losses, which are being assessed by the Florida Forest Service;
and
Value of production losses to capture fisheries.
Counties Designated for FEMA Assistance
Below is the FEMA Florida Disaster Declaration map designating eligible counties for individual
and public assistance.
The present situation for each issue in the bill is described below in Section III, Effect of
Proposed Changes.
BILL: SB 2-C Page 5
III. Effect of Proposed Changes:
Present Situation:
Taxation of Agricultural Property in Florida
Counties, municipalities, school districts, and some special districts have the authority to levy ad
valorem (“property”) taxes.10 Property tax applies to real property and tangible personal
property.
“Tangible personal property” means all goods, chattels, and other articles of value (not including
vehicles) capable of manual possession and whose chief value is intrinsic to the article itself.11
All tangible personal property is subject to ad valorem taxation unless expressly exempted.12
Household goods and personal effects,13 items of inventory,14 and up to $25,000 of assessed
value for each tangible personal property tax return15 are exempt from ad valorem taxation.
For purposes of ad valorem property taxation, agricultural equipment that is located on property
classified as agricultural under s. 193.461, F.S., and is obsolete and no longer usable for its
intended purpose is deemed to have a market value no greater than its value for salvage.16
Effect of Proposed Changes:
Section 1 creates s. 193.4518, F.S., providing that tangible personal property owned and
operated by a farm, farm operation, or agricultural processing facility in certain counties shall be
deemed to have a market value no greater than its salvage value, provided the tangible personal
property was unable to be used in the operation of the facility for at least 60 days due to the
effects of Hurricane Idalia. This valuation will be effective only for the 2024 tax year and is
limited to properties in Charlotte, Citrus, Columbia, Dixie, Gilchrist, Hamilton, Hernando,
Jefferson, Lafayette, Levy, Madison, Manatee, Pasco, Pinellas, Sarasota, Suwannee, or Taylor
Counties.
The deadline to apply for this assessment is March 1, 2024. If the application is denied by the
property appraiser, a petition may be filed with the value adjustment board to request the
property be assessed according to this provision. The petition must be filed on or before the 25th
day after the property appraiser mails the 2024 notice of assessment.
10
FLA. CONST. art VII, s. 9.
11
Section 192.001(11)(d), F.S.
12
Section 196.001(1), F.S.
13
Section 196.181, F.S.
14
Section 196.185, F.S.
15
Section 196.183, F.S.
16
Section 193.4615, F.S.
BILL: SB 2-C Page 6
Present Situation:
Sales Tax
Florida Sales Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,17 admissions,18 transient rentals,19 and a limited number of services. In addition to the
6 percent sales tax, Florida law authorizes counties to levy discretionary sales surtaxes.20 Sales
tax is added to the price of the taxable good or service and collected from the purchaser at the
time of sale. The sales and use tax accounted for approximately 75 percent of the state’s General
Revenue Fund in Fiscal Year 2022-2023.21
Chapter 212, F.S., contains provisions authorizing the levy and collection of Florida’s sales and
use tax, as well as the exemptions and credits applicable to certain items or uses under specified
circumstances. There are currently more than 280 exemptions, exclusions, deduction, and credits
from sales and use tax.22
Building Materials for Nonresidential Farm Buildings
A “nonresidential farm building” is defined as any temporary or permanent building or support
structure that is classified as a nonresidential farm building on a farm under
s. 553.73(10)(c), F.S., or that is used primarily for agricultural purposes, is located on land that is
an integral part of a farm operation or is classified as agricultural land under s. 193.461, F.S., and
is not intended to be used as a residential dwelling.23 The term includes barns, greenhouses,
shade houses, farm offices, storage buildings, and poultry houses.
The sale of building materials used in the construction or repair of buildings and other projects is
generally subject to the sales and use tax; however, a sale might be exempt depending upon how
or where the materials are used or who makes the purchase.24
Fencing Materials used in Agriculture
Current law exempts from the sales and use tax hog wire and barbed wire fencing, including
gates and materials used to construct or repair such fencing, and materials used to construct or
repair permanent or temporary fencing used to contain, confine, or process cattle, including gates
and energized fencing systems if such fencing is used in agricultural operations on lands
classified as agricultural lands under s. 193.461.25 The purchaser or lessee must sign a certificate
17
Section 212.05(1)(a)1.a., F.S.
18
Section 212.04(b), F.S.
19
Section 212.03(1)(a), F.S.
20
Section 212.055, F.S.
21
Office of Economic and Demographic Research, Revenue Estimating Conference Long-Term Revenue Analysis Volume 39,
Table 1.3, available at http://edr.state.fl.us/Content/conferences/longtermrevenue/index.cfm/ (last visited Nov. 1, 2023).
22
Office of Economic and Demographic Research, Florida Tax Handbook (2023), at 171-176, available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2023.pdf (last visited Nov. 1, 2023).
23
Section 604.50(d), F.S.
24
See s. 212.08, F.S..
25
Section 212.08(5)(a), F.S.
BILL: SB 2-C Page 7
stating that the item to be exempted is for the exclusive use which would qualify the purchaser
for the exemption.
Effect of Proposed Changes:
Section 2 exempts the purchase of fencing materials used in the repair or replacement of
agricultural fencing that was damaged as a direct result of Hurricane Idalia fro