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: SJR 318
INTRODUCER: Senator Truenow
SUBJECT: Ad Valorem Tax Exemption
DATE: April 14, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Burse Becker AG Favorable
2. Byrd Khan FT Pre-meeting
3. AP
I. Summary:
SJR 318 proposes an amendment to the Florida Constitution to authorize the legislature to
provide ad valorem tax relief for tangible personal property that is located on agricultural land,
used in the production of agricultural products or for agritourism activities, and is owned by the
landowner or leaseholder of the agricultural land.
The Revenue Estimating Conference has determined that the joint resolution will have no impact
since the proposed amendment to the constitution requires voter approval and is not self-
executing.
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
REVISED: BILL: SJR 318 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
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
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 (“TPP”).
6
Anyone who owns TPP on January 1 and has a
proprietorship, partnership, corporation, or is a self-employed agent or contractor; or leases,
lends, or rents property, must file a TPP return to the property appraiser by April 1 of each year.
7
A single return must be filed for each site in the county where the owner of the TPP transacts
business.
8
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.
• Also exempt under section 3 is $25,000 of the assessed value of TPP
9
, and the assessed
value of solar or renewable energy devices may be exempt pursuant to general law.
10
• Under section 4, TPP “held for sale as stock in trade” may be exempted from taxation.
11
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. See 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
FLA. CONST. art. VII, s. 1(a)
5
FLA. CONST. art. VII, s. 4.
6
See also FLA. CONST. art. VII, s. 9(a).
7
FLA. DEP’T OF REVENUE, Tangible Personal Property,
https://floridarevenue.com/property/Pages/Taxpayers_TangiblePersonalProperty.aspx (last visited April 10, 2025).
8
Section 196.183, F.S.
9
Section 196.183, F.S., specifies the conditions for the general exemption of $25,000 of the assessed value of TPP.
10
Section 196.182, F.S., specifies the conditions for exemption of renewable energy source devices.
11
This exemption for inventory is restated at section 196.185, F.S., and inventory is defined at section 192.001(11)(c), F.S. BILL: SJR 318 Page 3
For purposes of ad valorem property taxation, agricultural equipment that is located on property
classified as agricultural and is no longer usable for its intended purpose is deemed to have a
market value no greater than its value for salvage.
12
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.
13
Property appraisers annually classify, for
assessment purposes, all lands within a county as either agricultural or nonagricultural.
14
Only
lands that are used primarily for “bona fide agricultural purposes” shall be classified
agricultural.
15
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
developmental 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.
16
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.
17
12
Section 193.4615, F.S.
13
FLA. CONST. art. VII, s. 4(a).
14
Section 193.461(1), F.S.
15
Section 193.461(3)(b), F.S.
16
Id.
17
Section 193.461(6)(a), F.S. BILL: SJR 318 Page 4
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.
18
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.
19
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.
20
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.
21
III. Effect of Proposed Changes:
The joint resolution proposes an amendment to the Florida Constitution to authorize the
legislature to provide ad valorem tax relief for TPP that is located on agricultural land, used in
the production of agricultural products or for agritourism activities, and is owned by the
landowner or leaseholder of the 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
18
Section 570.85(1), F.S.
19
Id.
20
Section 570.86(1), F.S.
21
Section 570.87, F.S. BILL: SJR 318 Page 5
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.
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
22
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.
23
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
22
Section 97.021(17), 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.
23
Section 101.161(1), F.S. BILL: SJR 318 Page 6
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 determined that the joint resolution will have no
impact since the proposed amendment to the constitution requires voter approval and is
not self-executing.
B. Private Sector Impact:
If approved by 60 percent of voters in November 2026 and if there is legislation
implementing the proposed constitutional amendment, landowners with certain TPP 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,
24
typically
paid from non-recurring General Revenue funds.
25
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.
VI. Technical Deficiencies:
None.
24
Pursuant to Section 203 of the Voting Rights Act (52 U.S.C.A. § 10503)
25
See, e.g., Ch. 2022-156, Specific Appropriation 3137, Laws of Fla. BILL: SJR 318 Page 7
VII. Related Issues:
None.
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.