by Dawn Kitterman
A proposed constitutional amendment on Florida voters’ ballots this November would change how certain tangible personal property used in agriculture is treated under local property tax assessments. Amendment 2 would exempt qualifying equipment and other tangible personal property located on agricultural land and used in agricultural production or agritourism.
Under current Florida law, taxpayers can receive an exemption on the first $25,000 of tangible personal property they report for taxation. Other types of personal property, including household belongings and motor vehicles, are generally excluded from taxation under separate state-law provisions. Agricultural businesses, however, can still owe taxes on equipment such as tractors and irrigation systems when its taxable value exceeds the existing exemption. Amendment 2 would create a separate exemption for qualifying agricultural property, eliminating the property-tax liability on that equipment if it meets the amendment’s requirements.
Amendment 2 would not exempt the agricultural land itself from property taxes, only qualifying tangible personal property—such as equipment and machinery that is “habitually located or typically present on land classified as agricultural; used in the production of agricultural products or for agritourism activities.”
The range of tangible personal property that could qualify for the exemption may be broad once the provision takes effect. Examples of equipment that could qualify include tractors and other farm machinery, ATVs or UTVs, irrigation equipment, welding equipment, portable generators, tools, and livestock equipment, among other tangible personal property used in agricultural operations.
Qualifying property must be owned by the landowner or leaseholder of the agricultural land. The Legislature would retain authority to establish specific definitions, conditions, and limitations for exemption through general law.
The exact fiscal impact on individual counties and municipalities would vary, depending on the amount of qualifying property currently on their tax rolls. For eligible agricultural operations, the amendment would remove qualifying equipment and other tangible personal property from local ad valorem taxation.
A Senate fiscal impact statement estimates that the amendment would reduce local property tax revenues by approximately $31 million in fiscal year 2027-28, with the annual impact increasing to an estimated $32.3 million in 2028-29 and $33.6 million in 2029-30.
Amendment 2 reached the ballot after receiving overwhelming support in both Legislative chambers, with the Senate approving its placement on the ballot 37-0 and the House 110-1.
Supporters of Amendment 2, including Agriculture Commissioner Wilton Simpson, argue that removing the tax on qualifying agricultural equipment would reduce the tax burden on farmers and other agricultural landowners. Simpson has described the measure as a way to strengthen Florida’s agricultural industry and support the state’s food supply.
Opponents have raised concerns about the amendment’s potential impact on local governments and whether the exemption is too broad. State Rep. Anna Eskamani, D-Orlando, has argued that the measure could give larger ag businesses an advantage over smaller businesses. She believes a more targeted approach could better support small businesses and farmers.
A “yes” vote on Amendment 2 would create a constitutional property-tax exemption for qualifying tangible personal property used in agricultural production or agritourism and located on land classified as agricultural. A “no” vote would leave the current property-tax treatment of that property as is.
The amendment must receive at least 60% of the vote to pass. If approved, it would take effect upon voter approval and first apply to property-tax assessments for tax years beginning Jan. 1, 2027.