Working a large citrus operation near Tallahassee served by Duke Energy Florida. They use significant electricity for irrigation pumps, cold storage, and packing equipment. Florida has a sales tax exemption for agricultural operations under Chapter 212.08 but the client says they applied years ago and were denied. Should I drop it or dig deeper?
Florida sales tax exemption for agricultural operations
Don't drop it. Florida's agricultural exemption has been modified several times and eligibility criteria have expanded. If they were denied 5+ years ago the rules may have changed since then. Also check the reason for denial — sometimes it's a technicality in the application rather than actual ineligibility. I had a nursery operation in Miami that was denied because they filed the wrong form. Refiled with the correct exemption certificate and it was approved immediately. The Department of Revenue also has an Agricultural Industry exemption that covers not just farming but processing and packing of agricultural products.
Manny makes an important point. A prior denial does not mean permanent ineligibility. Tax laws change, exemption criteria expand, and application errors cause denials that can be corrected. Always investigate the reason for a prior denial and check whether current law would produce a different result. Florida's agricultural exemptions are particularly broad and cover electricity used in production, processing, packing, and cold storage of agricultural products. For a citrus operation like Rosemary's client, there are likely multiple qualifying categories.
Investigated the prior denial — it was because the client filed under the general manufacturing exemption instead of the specific agricultural exemption. Refiled under the correct provision with supporting documentation of their agricultural operations. Approved within 6 weeks. Retroactive refund of $28,000 over 3 years plus go-forward savings of about $780/month. The prior denial was just a paperwork mistake that nobody ever corrected.