State of Florida Agricultral sales tax exemption!
OEU would like to inform you of a law that the Florida Department of Revenue has instituted allowing for the exemption of sales tax on electricity used for certain agricultural purposes.
Effective July 1st, 2006, electricity used directly and exclusively for the production or processing of agricultural farm products on a farm is tax exempt. This exemption only applies if the electricity is separately metered from the electricity used for non-production or non-processing purposes. If the electricity is centrally metered and the electricity is used for both tax exempt and taxable purposes, all of that purchase of electricity is subject to tax.
Examples of tax-exempt uses of electricity include electricity used to supply power to farm equipment used directly and exclusively in producing or processing agricultural products on a farm. Examples of production equipment include, but are not limited to, irrigation pumps, milking machines, potting equipment, feeding systems, aerators, and computerized monitoring equipment. Examples of processing equipment include, but are not limited to, conveyors, chillers, freezers, packaging equipment, and computerized processing equipment.
Other tax-exempt uses include electricity that is separately metered and used to supply power to greenhouses, poultry houses, dairy barns, horse stables, and processing facilities located on a farm.
In order to qualify for the exemption, an exemption certificate stating that the electricity will be used directly and exclusively for the production or processing of agricultural farm products on a farm must be submitted to the Ocala Electric Utility. In instances where a utility provider accepts an exemption certificate in good faith, the Department will look to the consumer for any applicable tax, penalty, or interest due.
For more information and for forms, visit the state of Florida website at www.myflorida.com/dor. Or call Taxpayer Services at 800-352-3671 or 850-488-6800. The exemption certificate form is also available on our Ocala Electric Utility's website by clicking here.