GOVERNOR SIGNS GENERAL AG BILL

House Bill 7075, “General Ag Bill,” by Representative Ralph Poppell (R-Titusville) and Senator Rod Smith (D-Gainesville), was signed into law by Governor Bush on June 22 and becomes effective July 1. According to Butch Calhoun, FFVA Director, Governmental Affairs Division, the signing of this bill marks the end of a very successful legislative year for Florida agriculture.

One of the most important provisions of the bill is a long-sought sales tax exemption for electricity used in agriculture. As always, this is not a complete exemption, and growers should be aware that the exemption only applies to electricity used “directly and exclusively for the production or processing of agricultural products.” The exemption only applies if “the electricity is separately metered from electricity that is used for other non-qualifying purposes.” The Florida Department of Revenue is currently discussing the exemption with key agricultural industry representatives and will be releasing a Tax Information Publication (TIP) in the near future to provide further information.

FFVA grower members are advised to assess their current electricity usage and determine which meters currently qualify for the exemption. The cost of adding additional meters to separate qualifying and non-qualifying usage may be justified by the tax savings. For more information, please call the Governmental Affairs Division at (850) 521-0455.