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 Finance and Tax
BILL: CS/SB 1184
INTRODUCER: Community Affairs Committee and Senator Collins
SUBJECT: Agricultural Lands
DATE: April 11, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Fav/CS
2. Shuler Babin FT Pre-meeting
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 if the property is used for agricultural purposes;
Provides a credit against sales tax paid on the rental or purchase of housing for legal migrant
farmworkers; and
Authorizes the Florida Department of Environmental Protection to regulate and administer
the use of certain toilet facilities on agricultural land.
The Revenue Estimating Conference determined that section 3 of the bill, prohibiting local
governments from adopting zoning restrictions that terminate an agricultural classification, does
not affect revenues. Staff estimates that the remaining portions of the bill will reduce local
government revenues and general revenue by a significant amount.
The bill takes effect July 1, 2023.
REVISED: BILL: CS/SB 1184 Page 2
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
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
The just valuation standard generally requires the property appraiser to consider the highest and
best use of property;
7
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;
8
land used for conservation purposes;
9
historic properties
when authorized by the county or municipality;
10
and certain working waterfront property.
11
Agricultural Lands
Agricultural land is one example of property that is assessed based on its current use rather than
its highest and best use.
12
A property appraiser is required to annually classify all land as either
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),
https://floridarevenue.com/property/Documents/taxcalendar.pdf.
5
FLA. CONST. art. VII, s. 1(a).
6
See FLA. CONST. art. VII, s. 4.
7
Section 193.011(2), F.S.
8
FLA. CONST. art. VII, s. 4(a).
9
FLA. CONST. art. VII, s. 4(b).
10
FLA. CONST. art. VII, s. 4(e).
11
FLA. CONST. art. VII, s. 4(j).
12
FLA. CONST. art. VII, s. 4(a). BILL: CS/SB 1184 Page 3
agricultural or nonagricultural.
13
Agricultural lands are those used primarily for bona fide
agricultural purposes such as horticulture, viticulture, forestry, and farming.
14
Only the area of the land used for agricultural purposes benefits from the agricultural
classification.
15
Maintaining a dwelling on part of the lands used for agricultural purposes does
not in itself preclude an agricultural classification.
16
When agricultural property contains a
residence under the same ownership, the portion of the property consisting of the residence and
curtilage must be assessed separately.
17
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.
18
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.
19
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.
20
Lands classified as agricultural also enjoy certain benefits and protections, such
as a preemption on local government restrictions of farming on those lands
21
and limits on
nuisance complaints related to farming activities.
22
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,
23
with
a just value in excess of $10,000.
24
Such a special assessment must be based solely on the special
benefit accruing to the portion of the agricultural land containing the building.
25
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.
13
Section 193.461(1), F.S.
14
Section 193.461, F.S.
15
Section 193.461(3)(b), F.S.
16
Section 193.461(3)(c), F.S.
17
Section 193.461(3)(d), F.S.
18
Section 193.461(7), F.S.
19
Compare s. 193.461(6), F.S. with s. 193.011, F.S.
20
Section 193.461(6)(c), F.S. This treatment of these structures applies when using the income approach in determining
value.
21
Section 163.3162, F.S.
22
See the Florida Right to Farm Act, section 823.14, F.S.
23
A nonresidential farm building in which 70 percent or more of the perimeter walls are permanently open and allow free
ingress and egress. Section 125.01(1)(r), F.S.
24
Id.
25
Id. BILL: CS/SB 1184 Page 4
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.
26
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.
27
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.
28
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.
29
Common regulations on buildings
within the zoning map districts include density,
30
height and bulk of buildings, setbacks, and
parking requirements.
31
Zoning regulations 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.
32
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.
33
However, any action to rezone or
grant a variance must be consistent with the local government’s comprehensive plan.
26
Section 163.3177(6)(a), F.S.
27
Section 163.3177(6)(f), F.S.
28
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.
29
INDIAN RIVER CNTY., General Zoning Questions,
https://www.ircgov.com/communitydevelopment/planning/FAQ.htm#zoning1 (last visited Mar 31, 2023).
30
“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. Section 163.3164(12), F.S.
31
INDIAN RIVER CNTY., supra note 29.
32
See, e.g., CITY OF TALLAHASSEE, Application For Rezoning Review, available at:
https://www.talgov.com/Uploads/Public/Documents/place/zoning/cityrezinfsh.pdf (last visited Mar. 31, 2023).
33
See, e.g., CITY OF TALLAHASSEE, Variance and Appeals, available at:
https://www.talgov.com/Uploads/Public/Documents/growth/forms/boaa_variance.pdf (last visited Mar. 31 , 2023) and
SEMINOLE CNTY., Variance Process & Requirements, https://www.seminolecountyfl.gov/departments-services/development-
services/planning-development/boards/board-of-adjustment/variance-process-requirements.stml (last visited Mar. 31, 2023). BILL: CS/SB 1184 Page 5
Florida Sales Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,
34
admissions,
35
transient rentals,
36
and a limited number of services.
37
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.
38
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.
39
A surtax applies to “all transactions occurring in the county which transactions are subject
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 chapter 202.”
40
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.
41
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.
42
Enterprise Zone Jobs Credit Against Sales Tax
The legislature once provided a credit known as the Enterprise Zone Jobs Credit against certain
sales taxes for eligible businesses.
43
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.
44
The enterprise zone system and related tax credits, including s. 212.096, F.S., were repealed
December 31, 2015.
45
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
34
Section 212.05(1)(a)1.a., F.S.
35
Section 212.04(1)(b), F.S.
36
Section 212.03(1)(a), F.S.
37
See ch. 212, F.S.
38
Section 212.07(2), F.S.
39
Section 212.055, F.S.
40
Section 212.054(2)(a), F.S.
41
FLA. DEP’T OF REVENUE, Discretionary Sales Surtax (Sept. 2022), available at:
https://floridarevenue.com/Forms_library/current/gt800019.pdf.
42
FLA. REVENUE ESTIMATING CONF., 2022 Florida Tax Handbook (Nov. 4, 2022), at 166-171, available at:
http://edr.state.fl.us/content/revenues/reports/tax-handbook/taxhandbook2022.pdf.
43
Section 212.096, F.S.
44
Id.
45
Sections 212.096(12) and 290.016, F.S. BILL: CS/SB 1184 Page 6
who have changed residence for purposes of employment in agriculture within the last 12
months.
46
Outreach, employment, and other services targeted to 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.
47
Migrant farmworker housing is regulated by the Florida Department of Health in coordination
with local health departments and federal law.
48
Migrant farmworker housing may include
residential property, including mobile homes or a migrant labor camp consisting of dormitories
constructed and operated as living quarters for migrant farmworkers.
49
Establishment of such
housing requires advance notice, inspections, and permitting based on standards of construction,
sanitation, equipment, and operation, as well as compliance with inspections during use.
50
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 under 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, if the property is used for bona fide agricultural purposes. Such
restrictions, conditions, or regulations adopted before July 1, 2023, are invalid and
unenforceable.
46
Section 381.008(4), F.S.
47
FLA. DEP’T OF ECON. OPPORTUNITY, Migrant and Seasonal Farmworker Services, https://floridajobs.org/office-
directory/division-of-workforce-services/workforce-programs/migrant-and-seasonal-farmworker-services (last visited Mar.
31, 2023).
48
Sections 381.008-381.00897, F.S.
49
Section 381.008(5) and (8), F.S.
50
Section 381.0083, F.S. BILL: CS/SB 1184 Page 7
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.,
51
or manufactured home as
defined in s. 320.01(2)(b), F.S.,
52
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
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.
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
51
“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.
52
“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 8
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.
53,54
The
Revenue Estimating Conference has only reviewed and adopted an impact for one section
of this bill—section 3 relating to agricultural land zoning restrictions—and determined
that this section does not have an impact because it reflects current law and current
administration.
55
Any reduction of local government revenue created by other provisions
of the bill is indeterminate at this time.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Article VII, s. 19 of the Florida Constitution requires that legislation that increases or
creates taxes or fees be passed by a 2/3 vote of each chamber in a bill with no other
subject. The bill does not increase or create new taxes or fees. Thus, the constitutional
requirements related to new or increased taxes or fees do not apply.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has determined that section 3 has no impact but has not yet
reviewed the other sections of the bill.
56
Staff estimates that the remaining portions of the bill
will reduce local government revenues and general revenue by a significant amount.
53
FLA. CONST. art. VII, s. 18(d).
54
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
times $0.10. See FLA. SENATE COMM. ON CMTY. AFFAIRS, Interim Report 2012-115: Insignificant Impact, (Sept. 2011),
available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf.
55
OFF. OF ECON. & DEMOGRAPHIC RSCH., Revenue Estimating Conference Impact Results: SB 1184/HB 1343, 282-83, (Mar.
24, 2023), available at: http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2023/_pdf/page282-283.pdf.
56
Id. BILL: CS/SB 1184 Page 9
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.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 125.01, 163.3162,
193.461, 212.096, and 381.0065.
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.