Was a propane pool heater used on a tropical fish farm exempt from Florida sales tax?

Plain-English summary

The Department ruled that a propane pool and spa heater used to keep tropical-fish-farm water at 82 degrees during winter qualified for Florida's power-farm-equipment sales-tax exemption.

Aquaculture fell within the cited definition of agriculture. The heater also met the definition of power farm equipment because it depended on external propane and electric power to perform its function.

What this means for you

The ruling applied to a certified aquaculture operator's farm-use heater. The purchaser of qualifying equipment must give the selling dealer the exemption certificate required by Rule 12A-1.087.

Common questions

Was the propane heater exempt? Yes.

Why did it count as power farm equipment? It relied on external power sources to perform its farm function.

What was its agricultural use? Maintaining the water temperature for tropical fish during winter.

Citations and references

• Fla. Stat. §§ 212.02(30), 212.08(3), and 570.02(1) and Fla. Admin. Code r. 12A-1.087, as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 09A-042

Original ruling text

SUMMARY
QUESTION: Is a propane heater purchased for use on a fish farm to maintain a certain
water temperature exempt from sales tax
ANSWER: The heater qualifies for the exemption granted by Section 212.08(3), F.S..
when purchased for exclusive use on a farm
August 20, 2009
XXX
Re:

Technical Assistance Advisement 09A-042
Sales and Use Tax — Propane Heater for Aquacultural Use
XXX (Taxpayer)
Taxpayer Identification Number: XXX
Sections 212.08, Florida Statutes (F.S.)
Rule 12A-1 .087, Florida Administrative Code (F.A.C.)

Dear XXX:
This response is in reply to your letter to the Department, dated May 26, 2009, requesting
the Department’s issuance of a Technical Assistance Advisement (“TAA”) pursuant to s.
213.22, F.S., and Chapter 12-11, F.A.C., regarding the referenced matter. An examination
of your petition has established that you have complied with the statutory and regulatory
requirements for issuance of a TAA. Therefore, the Department is hereby granting your
request for issuance of a TAA.
ISSUE
Whether a propane pool heater purchased for use on a farm is exempt from sales tax.
FACTS
You operate a tropical fish farm and are licensed by the Department of Agriculture and
Consumer Services (Aquaculture Certificate Number XXX) under Chapter 597, F. S., as
a person engaged in aquaculture. You are questioning whether a gas-fired pool and spa
heater purchased for use on your farm qualifies for the exemption from sales tax under
Section 2 12.08(3), F.S. As stated in our recent telephone conversation, the heater in
question is a XXX 206,000 BTUH model propane pool heater. The heaters are used on
your farm to maintain a water temperature of 82 degrees during the winter months.
LAW

XXX
Page 2

Section 212.08(3), F.S., provides an exemption for power farm equipment used
exclusively on a farm in the agricultural production of crops or products produced by
those agricultural industries included in Section 570.02(1), F.S. The term “agriculture,”
as defined in Section 570.02(1), F.S., means “the science and art of the production of
plants and animals useful to humans, including to a variable extent the preparation of
these products for human use and their disposal by marketing or otherwise, and includes
aquaculture…
Section 212.02(30), F.S., defines “power farm equipment” as “moving or stationary
equipment that contains within itself the means for its own propulsion or power and
moving or stationary equipment that is dependent upon an external power source to
perform its functions.” (emphasis added)
As provided in Rule 12A- 1.087, F.A. C., any person who purchases qualifying farm
equipment, must issue an exemption certificate to the selling dealer. Dealers who accept
in good faith the required certificate from the purchaser or lessee will not be assessed
sales tax on the power farm equipment. In such instances, the Department of Revenue
will look solely to the purchaser or lessee for any additional sales or use tax due. Rule
12A-1 .087(10)(d), F.A.C.
CONCLUSION
The poo1 heater in question, which is dependent upon an external power source (propane
and electricity) to perform its function, qualifies for the exemption granted under Section
212.08(3), F.S., when purchased for use on a tropical fish farm.
This response constitutes a Technical Assistance Advisement under s. 213.22, F.S. which
is binding on the department only under facts and circumstances described in the request
for this advice as specified in s. 213.22, F.S. Our response is predicated on those facts
and the specific situation summarized above. You are advised that subsequent statutory
or administrative rule changes or judicial interpretations of the statutes or rules upon
which this advice is based may subject similar future transactions to a different treatment
than expressed in this response.
You are further advised that this response, your request and related backup documents are
public records under Chapter 119, F.S., and are subject to disclosure to the public under
the conditions of s. 213.22, F.S. Confidential information must be deleted before public
disclosure. In an effort to protect confidentiality, we request you provide the undersigned
with an edited copy of your request for Technical Assistance Advisement, the backup
material and this response, deleting names, addresses and any other details which might

XXX
Page 3

lead to identification of the taxpayer. Your response should be received by the
Department within 15 days of the date of this letter.
Sincerely,

Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 922-4838
Ctrl.No.: 65684