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 Appropriations
BILL: CS/SJR 1560
INTRODUCER: Finance and Tax Committee and Senator Collins
SUBJECT: Ad Valorem Taxation Exemptions
DATE: February 26, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Burse Becker AG Favorable
2. Shuler Khan FT Fav/CS
3. Shuler Sadberry AP Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SJR 1560 proposes an amendment to the Florida Constitution to permit the legislature to
provide ad valorem tax relief for tangible personal property on agricultural land, used on such
property in the production of agricultural products or for agritourism activities, and owned by the
landowner or leaseholder of the land.
If adopted by the Legislature, the proposed amendment will be submitted to Florida’s electors for
approval or rejection at the next general election in November 2024.
If approved by at least 60 percent of the electors, the proposed amendment will take effect on
January 1, 2025.
II. Present Situation:
General Overview of Property Taxation
The ad valorem tax or “property tax” is an annual tax levied by counties, municipalities, school
districts, and some special districts. The tax is based on the taxable value of property as of
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January 1 of each year.1 The property appraiser annually determines the “just value”2 of property
within the taxing jurisdiction and then applies relevant exclusions, assessment limitations, and
exemptions to determine the property’s “taxable value.”3 Property tax bills are mailed in
November of each year based on the previous January 1 valuation, and payment is due by March
31 of the following year.4
The Florida Constitution prohibits the state from levying ad valorem taxes,5 and it limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
authorized.6
Ad Valorem Taxation of Tangible Personal Property
Article VII, s. 1 of the Florida Constitution grants exclusive authority to local governments to
levy ad valorem taxes on tangible personal property (“TPP”).7 Anyone who owns TPP on
January 1 and has a proprietorship, partnership, corporation; leases, lends, or rents property; or is
a self-employed agent or contractor, must file a TPP return to the property appraiser by April 1
each year.8 A single return must be filed for each site in the county where the owner of tangible
personal property transacts business.9
The Florida Constitution includes the following exemptions and authorization for exemptions for
TPP:
 Section 1 specifies that motor vehicles, boats, airplanes, trailers, trailer coaches, and mobile
homes are subject to license taxes, but may not be subject to ad valorem taxes.
 Under section 3, household goods and personal effects are granted an exemption of at least
$1,000.
 Local governments are authorized under section 3 to grant community and economic
development ad valorem tax exemptions to new businesses and expansions of existing
businesses, which may apply to TPP.
1
Both real property and tangible personal property are subject to tax. Section 192.001(12), F.S., defines “real property” as
land, buildings, fixtures, and all other improvements to land. Section 192.001(11)(d), F.S., defines “tangible personal
property” as all goods, chattels, and other articles of value capable of manual possession and whose chief value is intrinsic to
the article itself.
2
Property must be valued at “just value” for purposes of property taxation, unless the Florida Constitution provides
otherwise. FLA. CONST. art VII, s. 4. Just value has been interpreted by the courts to mean the fair market value that a willing
buyer would pay a willing seller for the property in an arm’s-length transaction. See, e.g., Walter v. Schuler, 176 So. 2d 81
(Fla. 1965); Deltona Corp. v. Bailey, 336 So. 2d 1163 (Fla. 1976); S. Bell Tel. & Tel. Co. v. Dade Cnty., 275 So. 2d 4 (Fla.
1973).
3
See s. 192.001(2) and (16), F.S.
4
Sections 197.162 and 197.322, F.S.; see also FLA. DEP’T OF REVENUE, Florida Property Tax Calendar (Dec. 2016),
available at https://floridarevenue.com/property/Documents/taxcalendar.pdf (last visited Feb. 17, 2024).
5
FLA. CONST. art. VII, s. 1(a)
6
FLA. CONST. art. VII, s. 4.
7
See also FLA. CONST. art. VII, s. 9(a).
8
FLA. DEP’T OF REVENUE, Tangible Personal Property,
https://floridarevenue.com/property/Pages/Taxpayers_TangiblePersonalProperty.aspx (last visited Feb. 12, 2024).
9
Section 196.183, F.S.
BILL: CS/SJR 1560 Page 3
 Also exempt under section 3 is $25,000 of the assessed value of tangible personal property10,
and the assessed value of solar or renewable energy devices may be exempt pursuant to
general law11.
 Under section 4, tangible personal property “held for sale as stock in trade” may be exempted
from taxation.12
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.13
Agricultural Land Valuation
The Florida Constitution provides that agricultural land may be classified by general law and
assessed solely on the basis of character of use.14 Property appraisers annually classify, for
assessment purposes, all lands within a county as either agricultural or nonagricultural.15 Only
lands that are used primarily for “bona fide agricultural purposes” shall be classified
agricultural.16 Accordingly, properties classified as bona fide agricultural operations are allowed
to be taxed according to the “use” value of the agricultural operation, rather than the
development value. Generally, tax assessments for qualifying lands are lower than tax
assessments for other uses.
In determining whether the use of the land for agricultural purposes is bona fide, the following
factors may be taken into consideration:
 The length of time the land has been so used.
 Whether the use has been continuous.
 The purchase price paid.
 Size, as it relates to specific agricultural use, but a minimum acreage may not be required for
agricultural assessment.
 Whether an indicated effort has been made to care sufficiently and adequately for the land in
accordance with accepted commercial agricultural practices, including, without limitation,
fertilizing, liming, tilling, mowing, reforesting, and other accepted agricultural practices.
 Whether the land is under lease and, if so, the effective length, terms, and conditions of the
lease.
 Such other factors as may become applicable.17
When the land is classified as agricultural, the property appraiser shall consider the following use
factors only:
 The quantity and size of the property;
10
Section 196.183, F.S., specifies the conditions for the general exemption of $25,000 of the assessed value of tangible
personal property.
11
Section 196.182, F.S., specifies the conditions for exemption of renewable energy source devices.
12
This exemption for inventory is restated at section 196.185, F.S., and inventory is defined at section 192.001(11)(c), F.S.
13
Section 193.4615, F.S.
14
FLA. CONST. art. VII, s. 4(a).
15
Section 193.461(1), F.S.
16
Section 193.461(3)(b), F.S.
17
Id.
BILL: CS/SJR 1560 Page 4
 The condition of the property;
 The present market value of the property as agricultural land;
 The income produced by the property;
 The productivity of land in its present use;
 The economic merchantability of the agricultural product.
 Such other agricultural factors as may from time to time become applicable, which are
reflective of the standard present practices of agricultural use and production.18
Agritourism Activity
Current law provides legislative intent to promote agritourism as a way to support agricultural
production by providing a stream of revenue and by educating the general public about the
agricultural industry.19 Local governments may not adopt or enforce a local ordinance,
regulation, rule, or policy that prohibits, restricts, regulates, or otherwise limits an agritourism
activity on agricultural land.20
An “agritourism activity” is defined as any agricultural related activity that is consistent with a
bona fide farm, livestock operation, or ranch or in a working forest which allows the general
public to view or enjoy its activities for recreational, entertainment, or educational purposes.
These activities include farming, ranching, historical, cultural, civic, ceremonial, training and
exhibition, or harvest-your-own activities and attractions. An agritourism activity does not
include the building of new or additional structures or facilities that are intended primarily to
house, shelter, transport, or otherwise accommodate the general public. An activity is deemed to
be an agritourism activity regardless of whether the participant paid to participate in the
activity.21
In order to promote and perpetuate agriculture throughout the state, farm operations are
encouraged to engage in agritourism. An agricultural classification may not be denied or revoked
solely due to the conduct of agritourism activity on a bona fide farm or the construction,
alteration, or maintenance of a nonresidential farm building, structure, or facility on a bona fide
farm which is used to conduct agritourism activities.22
III. Effect of Proposed Changes:
The joint resolution proposes an amendment to the Florida Constitution to permit the legislature
to provide ad valorem tax relief for tangible personal property on agricultural land, used on such
property in the production of agricultural products or for agritourism activities, and owned by the
landowner or leaseholder of the land.
If adopted by the Legislature, the proposed amendment will be submitted to Florida’s electors for
approval or rejection at the next general election in November 2024.
18
Section 193.461(6)(a), F.S.
19
Section 570.85(1), F.S.
20
Id.
21
Section 570.86(1), F.S.
22
Section 570.87, F.S.
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The joint resolution also provides the ballot statement, which will appear on the November 2024
ballot if adopted by the Legislature, as follows:
AUTHORIZING LEGISLATURE TO EXEMPT TANGIBLE
PERSONAL PROPERTY ON AGRICULTURAL LAND FROM
TAXATION.—Proposing an amendment to the State Constitution to
authorize the Legislature, beginning with the 2026 tax roll, to exempt
tangible personal property located on land classified as agricultural, used
on such property in the production of agricultural products or for
agritourism activities, and owned by the landowner or leaseholder of the
land from ad valorem taxation.
If approved by at least 60 percent of the electors, the proposed amendment applies beginning
with the 2026 tax roll.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
The mandate provisions in Art. VII, s. 18 of the Florida Constitution do not apply to joint
resolutions.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
Article XI, s. 1 of the Florida Constitution authorizes the Legislature to propose
amendments to the Florida Constitution by joint resolution approved by a three-fifths
vote of the membership of each house. Article XI, s. 5(a) of the Florida Constitution
requires the amendment be placed before the electorate at the next general election23 held
more than 90 days after the proposal has been filed with the Secretary of State or at a
special election held for that purpose. Constitutional amendments submitted to the
electors must be printed in clear and unambiguous language on the ballot.24
23
Section 97.021(16), F.S., defines “general election” as an election held on the first Tuesday after the first Monday in
November in the even-numbered years, for the purpose of filling national, state, county, and district offices and for voting on
constitutional amendments not otherwise provided for by law.
24
Section 101.161(1), F.S.
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Article XI, s. 5(d) of the Florida Constitution requires proposed amendments or
constitutional revisions to be published in a newspaper of general circulation in each
county where a newspaper is published. The amendment or revision must be published
once in the 10th week and again in the 6th week immediately preceding the week the
election is held.
Article XI, s. 5(e) of the Florida Constitution requires approval by 60 percent of voters
for a constitutional amendment to take effect. The amendment, if approved, becomes
effective on the first Tuesday after the first Monday in January following the election, or
on such other date as may be specified in the amendment.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet reviewed this bill.
B. Private Sector Impact:
If approved by 60 percent of voters in November 2024, beginning with the 2026 tax roll,
landowners with tangible personal property on agricultural land will be exempt from ad
valorem taxes. This will result in an indeterminate positive fiscal impact as landowners
take advantage of ad valorem tax savings.
C. Government Sector Impact:
Article XI, s. 5(d) of the Florida Constitution requires proposed amendments or
constitutional revisions to be published in a newspaper of general circulation in each
county where a newspaper is published. The amendment or revision must be published in
the 10th week and again in the 6th week immediately preceding the week the election is
held.
The Division of Elections (division) within the Department of State pays for publication
costs to advertise all constitutional amendments in both English and Spanish,25 typically
paid from non-recurring General Revenue funds.26 Accurate cost estimates for the next
constitutional amendment advertising cannot be determined until the total number of
amendments to be advertised is known and updated quotes are obtained from
newspapers.
There is an unknown additional cost for the printing and distributing of the constitutional
amendments, in poster or booklet form, in English and Spanish, for each of the 67
Supervisors of Elections to post or make available at each polling room or each voting
site, as required by s. 101.171, F.S. Historically, the division has printed and distributed
25
Pursuant to Section 203 of the Voting Rights Act (52 U.S.C.A. § 10503)
26
See, e.g., Ch. 2022-156, Specific Appropriation 3137, Laws of Fla.
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booklets that include the ballot title, ballot summary, text of the constitutional
amendment, and, if applicable, the financial impact statement.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This resolution amends Article VII, section 3 of the Florida Constitution.
This resolution creates a new section in Article XII