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 Agriculture
BILL: SJR 318
INTRODUCER: Senator Truenow
SUBJECT: Ad Valorem Tax Exemption
DATE: February 17, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Burse Becker AG Pre-meeting
2. FT
3. AP
I. Summary:
SJR 318 proposes an amendment to the Florida Constitution to permit the legislature to provide
ad valorem tax relief for tangible personal property on agricultural 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 2026.
If approved by at least 60 percent of the electors, the proposed amendment will take effect on
January 1, 2027.
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
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
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.
REVISED: BILL: SJR 318 Page 2
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, section 1, also grants exclusive authority to local governments to levy ad valorem
taxes on tangible personal property.
7
The Florida Constitution includes the following exemptions
and authorization for exemptions for tangible personal property:
• 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 tangible personal property.
• Also exempt under section 3 is $25,000 of the assessed value of tangible personal property
8
,
and the assessed value of solar or renewable energy devices may be exempt pursuant to
general law
9
.
• Under section 4, tangible personal property “held for sale as stock in trade” may be exempted
from taxation.
10
Agricultural Land Valuation
Property appraisers annually classify, for assessment purposes, all lands within a county as either
agricultural or nonagricultural.
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Only lands that are used primarily for “bona fide agricultural
purposes” shall be classified agricultural.
12
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.
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.
5
FLA. CONST. art. VII, s. 1(a)
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FLA. CONST. art. VII, s. 4.
7
See also FLA. CONST. art. VII, s. 9(a).
8
Section 196.183, F.S., specifies the conditions for the general exemption of $25,000 of the assessed value of tangible
personal property.
9
Section 196.182, F.S., specifies the conditions for exemption of renewable energy source devices.
10
This exemption for inventory is restated at section 196.185, F.S., and inventory is defined at section 192.001(11)(c), F.S.
11
Section 193.461(1), F.S.
12
Section 193.461(3)(b), F.S. BILL: SJR 318 Page 3
• 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.
When the land is classified as agricultural, the property appraiser shall consider the following use
factors only:
• 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.
• 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.
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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.
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 2026.
The joint resolution also provides the ballot statement, which will appear on the November 2026
ballot if adopted by the Legislature, as follows:
AUTHORIZING THE 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
2027 tax roll, to exempt tangible personal property located on land classified as
agricultural, used in the production of agricultural products or for agritourism activities,
and owned by the landowner or leaseholder of the agricultural land from ad valorem
taxation.
If approved by at least 60 percent of the electors, the proposed amendment will take effect on
January 1, 2027.
13
Section 193.461(6)(a), F.S. BILL: SJR 318 Page 4
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
The mandate provisions in Article VII, section 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 election
14
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.
15
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.
14
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.
15
Section 101.161(1), F.S. BILL: SJR 318 Page 5
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
If approved by 60 percent of voters in November 2026, beginning with the 2027 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, Section 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,
16
typically
paid from non-recurring General Revenue funds.
17
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
booklets that include the ballot title, ballot summary, text of the constitutional
amendment, and, if applicable, the financial impact statement. Beginning in 2020, the
summary of such financial information statements was also included as part of the
booklets.
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VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
16
Pursuant to Section 203 of the Voting Rights Act (52 U.S.C.A. § 10503)
17
See Ch. 2020-111, Specific Appropriation 3132, Laws of Fla.
18
Section 100.371(13)(e)4., F.S. See also Ch. 2019-64, s. 3, Laws of Fla. BILL: SJR 318 Page 6
VIII. Statutes Affected:
This resolution amends section 3, Article VII of the Florida Constitution.
This resolution also creates a new section in Article XII of the Florida Constitution.
Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.