This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0149.WMC
DATE: 1/28/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 149 Aquaculture Land Valuation
SPONSOR(S): Tuck
TIED BILLS: IDEN./SIM. BILLS: SB 404
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee Davis Aldridge
2) State Affairs Committee
SUMMARY ANALYSIS
Section 193.461, Florida Statutes, allows for properties used for bona fide agricultural purposes to be taxed
based on the properties’ agricultural use.
1
“Agricultural purposes” includes horticulture, floriculture, viticulture,
forestry, dairy, livestock, poultry, bee, pisciculture, aquaculture,
2
algaculture, sod farming, and all forms of farm
products as defined in s. 823.14(3), F.S., and farm production.
3
Generally, ad valorem tax assessments for
properties classified as agricultural are lower than those for nonagricultural properties.
When assessing property used for bona fide agricultural purposes, the property appraiser must consider the
use factors specified in s. 193.461(6)(a)1.-7., F.S., which include the income produced by the property. For
purposes of the income methodology approach to the assessment of agricultural properties, s. 193.461(6)(c),
F.S. lists, certain types of structures which shall be considered a part of the average yields per acre and
therefore do not have a separately assessable contributory (taxable) value. This bill amends s. 193.461(6)(c),
F.S., to provide structures and equipment used in the production of aquaculture products.
The Revenue Estimating Conference estimated that for FY 2022-23, the bill would have zero cash and a -$7.5
million recurring impact on local government revenues (-$2.7 million school taxes; -$4.7 million non-school
taxes).
The bill has an effective date of July 1, 2022.
1
S. 193.461(6)(a), F.S.
2
As defined in s. 597.0015, F.S. (“‘Aquaculture’ means the cultivation of aquatic organisms”).
3
S. 193.461(5), F.S. STORAGE NAME: h0149.WMC PAGE: 2
DATE: 1/28/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Section 193.461, F.S., allows properties used for bona fide agricultural purposes to be taxed according
to the use value of the agricultural operation, rather than the development value.
4
“Agricultural
purposes” includes horticulture, floriculture, viticulture, forestry, dairy, livestock, poultry, bee,
pisciculture, aquaculture,
5
algaculture, sod farming, and all forms of farm products as defined in s.
823.14(3), F.S., and farm production.
6
Generally, tax assessments for qualifying lands are lower than
tax assessments for other uses.
When assessing land that has been granted the agricultural classification, the property appraiser shall
consider only the following use factors:
The quantity and size of the property;
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; and
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.
7
For purposes of the income methodology approach to assessment of property used for agricultural
purposes, certain structures that are physically attached to the land are considered a part of the
average yields per acre and have no separately assessable contributory (taxable) value. These
structures include the following:
Irrigation systems, including pumps and motors;
Litter containment structures located on producing poultry farms and animal waste nutrient
containment structures located on producing dairy farms;
Structures or improvements used in horticultural production for frost or freeze protection, which
are consistent with the interim measures or best management practices adopted by the
Department of Agriculture and Consumer Services; and
Screened enclosed structures used in horticultural production for protection from pests and
diseases or to comply with state or federal eradication or compliance agreements.
8
Effect of Proposed Changes
The bill provides that for purposes of the income methodology approach to assessment of land used in
the production of aquaculture products, structures and equipment are considered a part of the average
yields per acre and have no separately assessable contributory value.
B. SECTION DIRECTORY:
Section 1: Amends s. 193.461, F.S., to modify the assessment of land used in the production of
aquaculture products.
Section 2: Provides an effective date.
4
S. 193.461, F.S.
5
As defined in s. 597.0015, F.S. (“‘Aquaculture’ means the cultivation of aquatic organisms”).
6
S. 193.461(5), F.S.
7
S. 193.461(6)(a), F.S.
8
S. 193.461(6)(c), F.S. STORAGE NAME: h0149.WMC PAGE: 3
DATE: 1/28/2022
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The Revenue Estimating Conference estimated that for FY 2022-23, the bill would have zero cash
and a -$7.5 million recurring impact on local government revenues (-$2.7 million school taxes; -$4.7
million non-school taxes).
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Agricultural properties used for the production of aquaculture products will realize a lower value
assessment, and therefore ad valorem taxes, than would otherwise occur.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, section 18, of the Florida Constitution may
apply because this bill may reduce local authority to raise revenue; however, an exemption may
apply if the bill has an insignificant fiscal impact.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES