The Florida Cattlemen’s Association (FCA) wants to remind ranchers in the state that after lobbying for several years to remove the sales tax on fence, FCA members were finally able to secure this exemption during the 2022 legislative session, and that officially began the first of this month.
Florida tax code requires a sales tax to be applied to all things sold. And while the Florida cattle industry is required by law to fence in our animals, the rising costs of fencing material makes it an expensive proposition. And that is only magnified by adding a 6% sales tax on top of the cost.
According to Sam Ard, FCA Director of Government Affairs, this has been a major issue for several years and many conversations were had with Legislators and their aides. So Cattlemen across the state are grateful to the members of the Florida Legislature for being responsive to their needs.
Florida Governor Ron DeSantis signed this bill into law May 6, making it one of the largest tax breaks the Florida cattle industry has received in the past 25 years.
The State Revenue Estimating Conference estimates that this exemption will save Florida cattle producers $28.5 million in the first year alone. Plus, the Legislature completely exempted farm trailers from the sales tax. They had only been partially exempt before, and this is expected to save farmers and ranchers an additional $1.7 million in the first year.
Some of your vendors and suppliers may be unaware of this new law, so be sure when purchasing fencing materials to inform them about it.
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Exemptions for Fencing and Trailers Used in Agricultural Production (.pdf–from Florida Department of Revenue)