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 Community Affairs
BILL: CS/SB 1184
INTRODUCER: Community Affairs Committee and Senator Collins
SUBJECT: Agricultural Lands
DATE: March 23, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Fav/CS
2. FT
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1184 includes a variety of provisions related to use of agricultural lands. The bill:
Increases the minimum value of a nonresidential farm building which would permit a county
to levy fire protection service assessments on agricultural lands from $10,000 to $350,000;
Provides that the construction or installation of housing for legal migrant farmworkers is an
authorized use of farm land zoned for agricultural use;
Preempts a local government from adopting land use or zoning restrictions, conditions, or
regulations requiring the termination of an agricultural classification for any property or the
surrender of an agricultural classification;
Provides a credit against sales tax paid on the rental or purchase of housing for legal migrant
farmworkers; and
Permits the Florida Department of Environmental Protection to regulate and administer the
use of certain toilet facilities on agricultural land.
The Revenue Estimating Conference has not reviewed the bill.
The bill takes effect July 1, 2023.
II. Present Situation:
Ad Valorem 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
REVISED: BILL: CS/SB 1184 Page 2
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
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.
The Florida Constitution prohibits the state from levying ad valorem taxes,
4
and it limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
authorized.
5
The just valuation standard generally requires the property appraiser to consider the highest and
best use of property;
6
however, the Florida Constitution authorizes certain types of property to be
valued based on their current use (classified use assessments), which often results in lower
assessments. Properties that receive classified use treatment in Florida include agricultural land,
land producing high water recharge to Florida’s aquifers, and land used exclusively for
noncommercial recreational purposes;
7
land used for conservation purposes;
8
historic properties
when authorized by the county or municipality;
9
and certain working waterfront property.
10
Agricultural Lands
Agricultural land is one example of property that is assessed based on its current use rather than
its fair market value.
11
A property appraiser classifies all land as either agricultural or
nonagricultural. Agricultural lands are those used primarily for bona fide agricultural purposes
such as horticulture, viticulture, forestry, and farming.
12
Only the area of the land used for agricultural purposes benefits from the agricultural
classification. Maintaining a dwelling on part of the lands used for agricultural purposes does not
in itself preclude an agricultural classification.
13
When agricultural property contains a residence
under the same ownership, the portion of the property consisting of the residence and curtilage
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 Walter v. Shuler, 176 So. 2d 81 (Fla.
1965); Deltona Corp. v. Bailey, 336 So. 2d 1163 (Fla. 1976); Southern Bell Tel. & Tel. Co. v. Dade County, 275 So. 2d 4
(Fla. 1973).
3
See s. 192.001(2) and (16), F.S.
4
FLA. CONST. art. VII, s. 1(a).
5
See FLA. CONST. art. VII, s. 4.
6
Section 193.011(2), F.S.
7
FLA. CONST. art. VII, s. 4(a).
8
FLA. CONST. art. VII, s. 4(b).
9
FLA. CONST. art. VII, s. 4(e).
10
FLA. CONST. art. VII, s. 4(j).
11
FLA. CONST. art. VII, s. 4(a).
12
Section 193.461, F.S.
13
Section 193.461(3)(c), F.S. BILL: CS/SB 1184 Page 3
must be assessed separately.
14
There are certain protections of agricultural classifications when
land is temporarily not being used for agriculture due to a natural disaster or in compliance with
certain state agriculture programs.
15
Agricultural lands are taxed at a value based on their agricultural use, which requires a property
appraiser to use a different analysis to value the land than that used to determine the just value of
the land. Additionally, certain structures that are attached physically to the land are considered to
be a part of the average yields per acre and have no separately assessable contributory (taxable)
value.
16
Lands classified as agricultural also enjoy certain benefits and protections, such as a
preemption on local government restrictions of farming on those lands
17
and limits on nuisance
complaints related to farming activities.
18
Fire Protection Assessments
Counties are specifically prohibited from levying a special assessment for the provision of fire
protection services on lands classified as agricultural lands, unless the land contains either a
residential building, or a nonresidential farm building, other than an agricultural pole barn,
19
with
a just value in excess of $10,000.
20
Such a special assessment must be based solely on the special
benefit accruing to the portion of the agricultural land containing the building.
21
Comprehensive Plans and Land Use Regulation
The Growth Management Act requires every city and county to create and implement a
comprehensive plan to guide future development. A locality’s comprehensive plan lays out the
locations for future public facilities, including roads, water and sewer facilities, neighborhoods,
parks, schools, and commercial and industrial developments.
The land use element of the plan designates proposed future general distribution, location,
and extent of the uses of land. Specified use designations include those for residential,
commercial, industry, agriculture, recreation, conservation, education, and public facilities.
22
The housing element of the plan sets forth guidelines and strategies for the creation and
preservation of affordable housing for all current and anticipated future residents of the
jurisdiction, elimination of substandard housing conditions, provision of adequate sites for
future housing, and distribution of housing for a range of incomes and types.
23
14
Section 193.461(3)(d), F.S.
15
Section 193.461(7), F.S.
16
Section 193.461(6)(c), F.S. This treatment of these structures applies when using the income approach in determining
value.
17
Section 163.3162, F.S.
18
See the Florida Right to Farm Act, section 823.14, F.S.
19
A nonresidential farm building in which 70 percent or more of the perimeter walls are permanently open and allow free
ingress and egress. Id.
20
Section 125.01(1)(r), F.S.
21
Id.
22
Section 163.3177(6)(a), F.S.
23
Section 163. 3177(6)(f), F.S. BILL: CS/SB 1184 Page 4
Local governments regulate aspects of land development by enacting ordinances that address
local zoning, rezoning, subdivision, building construction, landscaping, tree protection, or sign
regulations or any other regulations controlling the development of land.
24
Zoning
Zoning maps and zoning districts are adopted by a local government for developments within
each land use category or sub-category. While land uses are general in nature, one or more
zoning districts may apply within each land use designation.
25
Common regulations on buildings
within the zoning map districts include density,
26
height and bulk of buildings, setbacks, and
parking requirements.
27
Zoning regulations will also include acceptable uses of property for
other categories of land, such as agricultural or industrial.
If a landowner believes that a proposed development may have merit but it does not meet the
requirements of a zoning map in a jurisdiction, the landowner can seek a rezoning through a
rezoning application which is reviewed by the local government and voted on by the governing
body.
28
If a property has unique circumstances or small nonconformities but otherwise meets
zoning regulations, local governments may ease restrictions on certain regulations such as
building size or setback through an application for a variance.
29
However, any action to rezone or
grant a variance must be consistent with the local government’s comprehensive plan.
Florida Sales Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,
30
admissions,
31
transient rentals,
32
and a limited number of services. 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 sales. Sales tax is added to the sales price of the
taxable good or service and collected from the purchaser at the time of sale.
33
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.
34
A surtax applies to “all transactions occurring in the county which transactions are subject
24
See ss. 163.3164 and 163.3213, F.S. Pursuant to s. 163.3213, F.S., substantially affected persons have the right to maintain
administrative actions which assure that land development regulations implement and are consistent with the local
comprehensive plan.
25
Indian River County, General Zoning Questions, available at
https://www.ircgov.com/communitydevelopment/planning/FAQ.htm#zoning1 (last visited Jan. 20, 2023)
26
“Density” means an objective measurement of the number of people or residential units allowed per unit of land, such as
residents or employees per acre. See s. 163.3164(12), F.S.
27
Supra note 126.
28
City of Tallahassee, Application For Rezoning Review, available at
https://www.talgov.com/Uploads/Public/Documents/place/zoning/cityrezinfsh.pdf (last visited Jan. 20, 2023)
29
City of Tallahassee, Variance and Appeals, available at
https://www.talgov.com/Uploads/Public/Documents/growth/forms/boaa_variance.pdf (last visited Jan. 20, 2023) and
Seminole County, Variance Processes available at https://www.seminolecountyfl.gov/departments-services/development-
services/planning-development/boards/board-of-adjustment/variance-process-requirements.stml (last visited Jan. 20, 2023)
30
Section 212.05(1)(a)1.a., F.S.
31
Section 212.04(1)(b), F.S.
32
Section 212.03(1)(a), F.S.
33
Section 212.07(2), F.S.
34
Section 212.055, F.S. BILL: CS/SB 1184 Page 5
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by
[ch. 212, F.S.], and communications services as defined in ch. 202.”
35
The discretionary sales
surtax is based on the tax rate imposed by the county where the taxable goods or services are
sold or delivered. Discretionary sales surtax may be levied in a range of 0.5 to 2.5 percent.
36
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 270 exemptions, exclusions, deduction, and credits
from sales and use tax.
37
Enterprise Zone Jobs Credit Against Sales Tax
The legislature once provided a credit against certain sales taxes for eligible businesses.
38
To be
eligible for this credit, a business must have been located in an enterprise zone and demonstrated
to the Department of Revenue that, upon application, the total number of full-time jobs created
by the business is greater than the total was 12 months prior to that date.
39
The enterprise zone system and related tax credits, including s. 212.096, F.S., were repealed
December 31, 2015.
40
Migrant and Seasonal Farmworkers
Migrant farmworkers are defined as people who are or have been employed in hand labor
operations in planting, cultivating, or harvesting agricultural crops within the last 12 months and
who have changed residence for purposes of employment in agriculture within the last 12
months.
41
Programs to bring migrant farmworkers are regulated by federal law and administered
by various state and local agencies, including the Department of Economic Opportunity’s
Migrant and Seasonal Farmworker Services Program.
42
Migrant farmworker housing is regulated by the Florida Department of Health in coordination
with local health departments and federal law.
43
Migrant housing may include residential
property, a hotel or motel furnished for transient occupancy, or a migrant labor camp consisting
of dormitories constructed and operated as living quarters for migrant farmworkers.
44
Establishment of such housing requires advance notice, inspections, and permitting based on
35
Section 212.054(2)(a), F.S.
36
Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Dec. 06, 2021).
37
Office of Economic and Demographic Research, Florida Tax Handbook (2022), at 166-171, available at
http://edr.state.fl.us/content/revenues/reports/tax-handbook/taxhandbook2022.pdf (last visited Mar. 2, 2023).
38
Section 212.096, F.S.
39
Id.
40
Section 290.016, F.S.
41
Section 381.008(4), F.S.
42
Department of Economic Opportunity, Migrant and Seasonal Farmworker Services, available at
https://floridajobs.org/office-directory/division-of-workforce-services/workforce-programs/migrant-and-seasonal-
farmworker-services (last visited Mar. 23, 2023).
43
Sections 381.008-381.00897, F.S.
44
Setion 381.008(5) and (8), F.S. BILL: CS/SB 1184 Page 6
standards of construction, sanitation, equipment, and operation, as well as compliance with
inspections during use.
45
III. Effect of Proposed Changes:
Section 1 amends s. 125.01, F.S., regarding fire protection service assessments. Current law
provides that a county may not levy special assessments for the provision of fire protection
services on agricultural lands unless the land contains a residential dwelling of any value, or a
nonresidential farm building which exceeds a just value of $10,000; the bill increases this value
to $350,000.
Section 2 amends s. 163.3162, F.S., to provide that the construction or installation of housing for
legal migrant farmworkers is an authorized use on land zoned for agricultural use and operated
as a bona fide farm. Housing authorized under this section:
Must not exceed 7,500 square feet per parcel of land;
Must meet all local and state building standards for securing a certificate of occupancy; and
Does not require approval by ordinance or resolution of the jurisdiction in which the land is
located.
The bill further provides that if agricultural operations are discontinued on the property for at
least 3 years and the land is no longer classified as agricultural, housing established under this
section is no longer eligible for residential use without further approval by the local jurisdiction’s
zoning and land use regulations.
Section 3 amends s. 193.461, F.S., to preempt a local government from adopting land use or
zoning restrictions, conditions, or regulations requiring the termination of an agricultural
classification for any property or the surrender of an agricultural classification for any property
by the property owner. Such restrictions, conditions, or regulations adopted before July 1, 2023,
are invalid and unenforceable.
Section 4 amends s. 212.096, F.S., to provide a credit against sales and use taxes for 100 percent
of the sales and use tax due on:
Rental of housing, including a building, manufactured home, mobile home, dormitory,
barracks, motel, or hotel, for housing two or more legal migrant farmworkers; or
Purchase of a mobile home as defined in s. 320.01(2)(a), F.S.,
46
or manufactured home as
defined in s. 320.01(2)(b), F.S.,
47
for housing two or more legal migrant farmworkers.
The section is housed within the enterprise zone jobs credit against sales tax, which requires an
affirmative showing by an eligible business that the business is located in an enterprise zone and
45
Section 381.0083, F.S.
46
“Mobile home” means a structure, transportable in one or more sections, which is 8 body feet or more in width and which
is built on an integral chassis and designed to be used as a dwelling when connected to the required utilities and includes the
plumbing, heating, air-conditioning, and electrical systems contained therein. Section 320.01(2)(a), F.S.
47
“Manufactured home” means a mobile home fabricated on or after June 15, 1976, in an offsite manufacturing facility for
installation or assembly at the building site, with each section bearing a seal certifying that it is built in compliance with the
federal Manufactured Home Construction and Safety Standard Act. Section 320.01(2)(b), F.S. BILL: CS/SB 1184 Page 7
the number of full time jobs generated by the business is greater in the year the credit is claimed
than in the previous year.
In order to claim this credit, an employer must file under oath with the governing body where the
property is located a statement that includes the name and address of the eligible business and,
for each legal migrant farmworker for whom this credit is claimed, the farmworker’s name, place
of permanent residence, hourly wages paid to the worker, and documentation that the
farmworker is legally eligible for participation in the workforce.
Within 10 working days after receipt of such an application, the governing body shall review the
application for completeness and certify all complete applications as eligible to receive the
credit. Applications for a credit must be submitted to the DOR within 6 months after the
employee is hired.
Section 5 amends s. 381.0065, F.S., to provide that the Florida Department of Environmental
Protection may review applications, perform site inspections, and issue permits for the use of
holding tanks, privies, portable toilet services, or any other toilet facility intended for use on a
permanent or nonpermanent basis placed on lands classified as agricultural. Current law is silent
on the use of such facilities on agricultural lands, referring only specifically to use on
construction sites while workers are present.
48
Section 6 provides that the bill shall take effect July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, Section 18(b) of the Florida Constitution provides that, except upon the
approval of each house of the Legislature by a two-thirds vote of the membership, the
Legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. The bill may
reduce local government revenue by creating a sales tax credit for certain taxes paid, and
prohibiting special assessments for fire protection services in certain circumstances.
Laws having an “insignificant fiscal impact” are exempt from the mandate requirements,
which for Fiscal Year 2022-2023 is forecast at approximately $2.3 million.
49,50
The
Revenue Estimating Conference has not reviewed this bill, and the reduction of local
government revenue created by the provisions of the bill is indeterminate at this time.
48
Fla. Admin. Code, rule 62-6(7).
49
FLA. CONST. art. VII, s. 18(d).
50
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
times $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact, (Sept.
2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last visited
Mar. 10, 2023). BILL: CS/SB 1184 Page 8
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not reviewed this bill.
B. Private Sector Impact:
Businesses employing and housing migrant farmworkers will benefit from a variety of
provisions of the bill implementing sales tax credits, creating certain property rights, and
reducing special assessments for fire protection services.
C. Government Sector Impact:
State and local governments will be negatively impacted by the creation of a sales tax
credit. Additionally, local governments will be impacted to the extent that prohibiting the
special assessments for fire protection services reduces revenue.
VI. Technical Deficiencies:
None.
VII. Related Issues:
Section 4 of the bill, authorizing a tax credit against certain sales tax paid related to the housing
of migrant farmworkers, is tied to the enterprise zone job creation tax credit, a now-repealed
statute which required a showing that permanent, full-time jobs were created by a business.
Additionally, the provision creates a tax credit against sales taxes in the amount of sales taxes
paid, which may be administratively complicated. BILL: CS/SB 1184 Page 9
VIII. Statutes Affected:
This bill substantially amends sections 125.01, 163.3162, 193.461, 212.096, and 381.0065 of the
Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Community Affairs on March 22, 2023:
The CS:
Increases the maximum size of permitted housing for migrant farmworkers on
agricultural land from 5,000 to 7,500 square feet per parcel;
Provides that such housing is not eligible for residential uses without further
jurisdiction approval if the property ceases farming operations and loses agricultural
classification; and
Updates references throughout to “migrant farmworkers” to read “legal migrant
farmworkers.”
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.