What Is an Agricultural Tax Exemption in Florida?

EPGD Law Tax Law

What Is an Agricultural Tax Exemption in Florida?

The Agricultural Tax Exemption is a property tax exemption that landowners may receive, if they can show that their land is being put to agricultural use. Different states define “agricultural use” in different ways. For example, Florida requires agricultural use to be bona fide. Fl. Stat. § 193.461. “Bona fide agricultural purpose” is defined as a “good faith commercial agricultural use of the land.” Fla. Stat. § 193.461(1)(b) (2009). Some states require the agricultural use to be for commercial purposes, and for some profits to be gained from the land.

The Agricultural Tax Exemption could be a useful tool for farmers, as property used for agricultural purposes is usually taxed at a lower rate than residential property.

How Can I Get an Agricultural Tax Credit in Miami?

To apply for an Agricultural Classification in Miami-Dade County, the landowner should first send an Agriculture Application to the Property Appraiser’s Office Agriculture’s Section. The application period is usually between January 1 and March 1st of every year. Typically, if an application is denied, the landowner is entitled to a consultation with the County’s Property Appraiser’s Office, where he is able to provide additional information about the property’s agricultural use. The land will typically also be physically inspected.

The allocation of the agricultural classification is determined based on the property assessment as of January 1st of every year. Certain Florida counties, like Hillsborough County, do not have a size requirement for the property to be suitable for an agricultural classification. However, most counties require that the property be large enough for commercial use.

When received, the Agricultural classification will renew automatically every year. New applications should be filled out primarily if there are changes to the property’s titles or if the primary use of the property has changed.

Can You Have an Agricultural Exemption on a Homestead Property in Florida?

The answer is yes, you can. In such a case, the residential part of the property with its curtilage will be evaluated differently from the agricultural part of the property. This way the agricultural part of the property won’t be covered by the homestead exemption.

However, in every case the benefit of classifying a part of the property as agricultural may not exceed the benefit of covering the entire property with a homestead tax exemption. It is, therefore, advisable to consult an attorney when deciding which exemption to claim.

EPGD Business Law is located in beautiful Coral Gables, West Palm Beach and historic Washington D.C. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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