Amendment 2 would constitutionally exempt agricultural landowners or leaseholders from taxes on assessed value of equipment used in farming
Florida voters will see three proposed constitutional amendments on their November ballot. All were placed on the ballot by the Florida Legislature, and each needs at least 60% of the vote to pass. In this three-part series, we’ll look at what each amendment would change and what it could mean for Florida and our communities.
Amendment 2: Taxes for agricultural tangible property
Currently, Florida charges taxes on the assessed value of Tangible Personal Property (TPP) used for agricultural production or agritourism activities. Examples of this property would be equipment used in farming like wagons, tractors, tools or harvesters. Most other businesses also pay property tax on equipment used in their businesses except in certain industries like motor vehicles, household goods and the first $25,000 of TPP.
Amendment 2 would constitutionally exempt agricultural landowners or leaseholders from these taxes, with certain qualifications. To qualify, the land must be “habitually located or typically present” on farmland, is used for producing farm products or agritourism, and the TPP is owned by the landowner or leaseholder of the agricultural land. All other businesses would still have to pay the TPP on the equipment used for performing their operations.
Background on taxation for agriculture
Agriculture contributes tens of billions of dollars to Florida’s economy and supports hundreds of thousands of jobs. Florida already provides agriculture with several tax advantages, including assessing qualifying farmland based on its agricultural use rather than its potential development value. Florida also exempts many agricultural supplies and inputs from sales tax and local business taxes. Amendment 2 would add an additional benefit by exempting qualifying farm equipment and other tangible personal property from local property taxes.
Why support the amendment?
Supporters point to the significant financial pressures facing many Florida farmers, because of hurricanes, droughts, crop diseases, and increasing concerns about pesticides. They argue that eliminating property taxes on farm equipment could reduce operating costs and help keep agricultural businesses viable, limiting bankruptcies and conversion of farmland to development.
Why oppose it?
Those opposed argue that specific tax exemptions should not be written into the state Constitution and that tax policy is better handled through state law, where it can be reviewed and changed by future legislatures as economic conditions and public needs change.
Opponents also point to the effect on local government budgets. The state estimates that the exemption would reduce local property-tax revenues by approximately $31 million each year, beginning in fiscal year 2027–28.
Another concern is fairness. Qualifying agricultural businesses would no longer pay tangible personal property taxes on covered equipment, while many other businesses would continue to pay those taxes on machinery, tools and other taxable business property.
A Yes vote would establish in the Florida Constitution that agricultural landowners and leaseholders would be exempt from TPP if the property is used for farming or agricultural tourism and that property is owned by the taxpayer. Tax revenue to the local government would decline.
A No vote would leave the current constitutional rules in place with agriculture paying the existing property tax calculated on the assessed value of tangible personal property used for farming or agritourism like many other businesses.
Whichever your position, make a plan to vote — by mail, during early voting or on Election Day. Your vote makes a difference. Watch for the article about Amendment 3 in the days ahead. More information is available on Vote411.org.
Note: The League has long argued that detailed tax policy is better handled through legislation and not the Constitution, providing greater flexibility and local control. It also is concerned that Amendment 2 would reduce local revenues that fund vital services. The LWV opposes this amendment.
The League of Women Voters is a nonpartisan political organization that encourages informed and active participation in government. For more information about the League, see https://www.lwvcolliercounty.org
Stacy Vermylen is Communications chair, League of Women Voters of Collier County.