Were fencing materials, hardware, and prefabricated cattle-containment devices exempt from Florida sales tax when used on a farm?

Plain-English summary

Florida found that ordinary fencing and prefabricated containment devices used to keep cattle on a farm were taxable.

The requested items included posts, wire, braces, boards, beams, guardrail, metal tubing, fasteners, gates, cattle panels, cattle guards, cattle pens, and electric-fencing materials. Although farmers used them to contain an agricultural commodity, the Department found no specific Chapter 212 exemption covering those items.

The agricultural exemption and suggested certificate listed particular production materials and one-time packaging items. Florida construed those provisions narrowly and declined to extend them to permanent or ordinary cattle fencing.

What this means for you

Cattle ranchers and farmers

Using an item for an agricultural purpose does not automatically make it exempt. The purchase must fit an express exemption.

Farm suppliers

Do not treat fencing and cattle-containment products as exempt based only on a farmer's intended use under the provisions addressed in this ruling.

Common questions

Were fence posts, wire, and hardware exempt? No.

Were prefabricated gates, panels, guards, or pens exempt? No.

Why did the farmer's certificate not cover them? The cited list concerns specified agricultural items and one-time packaging materials, not general fencing.

Citations and references

• Fla. Stat. Sec. 212.05(1)(a)
• Fla. Stat. Sec. 212.08(5)(a)
• Fla. Stat. Sec. 212.08(13)
• Fla. Admin. Code R. 12A-1.087(10)(f)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 20A-017

Original ruling text

Questions: Whether materials and hardware used to contain cattle on a farm are
exempt from Florida sales tax and use tax? Whether pre-fabricated containment
devices used to contain cattle are exempt from Florida sales and use tax?
Answer: Fencing materials, hardware, and pre-fabricated containment devices used to
contain cattle on a farm are subject to Florida sales and use tax given there are no
specific exemptions granted under Chapter 212, F.S., for such materials.

October 30, 2020

XXXXXXXXX XXXXXX
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Technical Assistance Advisement (TAA) 20A-017
Sales & Use Tax – Fencing Materials
Section 212.02, 212.05, and 212.08, Florida Statutes (F.S.)
Rule 12A-1.087, Florida Administrative Code (F.A.C.)
Dear XXXXXXX:
This is in response to the letter dated January 7, 2020, requesting this Department’s
issuance of a Technical Assistance Advisement (“TAA”) pursuant to s. 213.22, F.S., and
Chapter 12-11, Florida Administrative Code (Fla. Admin. Code) regarding the taxability
of pre-assembled meals. Your request has been carefully examined, and the
Department finds it to be in compliance with the requisite criteria set forth in Chapter 1211, Fla. Admin. Code. This response to your request constitutes a TAA and is issued to
you under the authority of s. 213.22, F.S.
As provided in s. 213.22(1), F.S., a technical assistance advisement may be issued to a
taxpayer who requests an advisement relating to the exemptions in s. 212.08(1) or (2),
F.S., at any time. “Technical assistance advisements shall have no precedential value

Technical Assistance Advisement
October 30, 2020
Florida Department of Revenue
Page 2

except to the taxpayer who requests the advisement and then only for the specific
transaction addressed in the technical assistance advisement, unless specifically stated
otherwise in the advisement.”
REQUESTED RULINGS
•
•

Whether materials and hardware used to contain cattle on a farm are exempt
from Florida sales tax and use tax?
Whether pre-fabricated containment devices used to contain cattle are exempt
from Florida sales and use tax.
FACTS

XXXXXXXXX XXXXXXX consists of cattle ranchers engaged in the business of
producing cattle. As presented in the request for technical advisement, the cattle must
be contained within certain areas as Florida law requires the containment of livestock to
prevent them from roaming onto public roadways, public property, or impeding
waterways. In containing the cattle, farmers and ranchers purchase various materials
that fall into the following two groups:
•

Materials and hardware. For example: [P]osts, wire, braces, boards, planks,
beams, guardrail, metal tubing, channels, staples, nails, screws, nuts, bolts,
rivets, clamps, and clips.

•

Prefabricated containment devices. For example; [G]ates, cattle panels, cattle
guards, cattle pens, and electric fencing materials.

Taxpayer seeks guidance regarding whether the exemption granted under s.
212.08(5)(a), F.S., for items purchased by farmers to contain, produce, or process an
agricultural commodity extends to the materials noted above when used to contain
cattle.
LAW
Pursuant to Section 212.05(1)(a), F.S., sales tax is imposed at the rate of 6 percent of
the sales price of each item or article of tangible personal property when sold at retail in
this state. As defined in s. 212.02(14)(c), F.S., the term “retail sale” does not include
materials, containers, labels, sacks, bags, or similar items intended to accompany a
product sold to a customer without which delivery of the product would be impracticable
because of the character of contents and be used one time only for packaging tangible
personal property for sale or for the convenience of the customer.
Section 212.08(5)(a), F.S., provides an exemption for specific items purchased for
agricultural use. Included in the list of specific items exempt under s. 212.08(5)(a), F.S.,
are cellophane wrappers, glue to tin and glass (apiarists), mailing cases for honey,

Technical Assistance Advisement
October 30, 2020
Florida Department of Revenue
Page 3

shipping cases, window cartons, and bailing wire and twine used or bailing hay, when
used by a farmer to contain, produce, or process and agricultural commodity.
Rule 12A-1.087(10)(f), F.A.C., provides a suggestive purchaser’s exemption certificate
for use by farmers in making exempt purchases of items that qualify for exemption as
items for agricultural use or items for agricultural purposes. The list is not intended to
be an exhaustive list. Included in the suggested certificate are:
Items that are used by a farmer to contain, produce, or process an
agricultural commodity, such as: glue for tin and glass for use by apiarists;
containers, labels, and mailing cases for honey; wax moth control with
paradichlorobenzene; cellophane wrappers; shipping cases; labels,
containers, clay pots and receptacles, sacks or bags, burlap, cans, nails,
and other materials used in packaging plants for sale; window cartons;
baling wire and twine used for baling hay; and other packaging materials
for one time use in preparing an agricultural commodity for sale.
No transactions shall be exempt from the tax imposed by Chapter 212, F.S., except
those expressly exempt. See s. 212.08(13), F.S. Furthermore, Florida courts have
consistently held that exemptions must not be expanded beyond their express terms
and must be strictly and narrowly construed against the taxpayer. See Department of
Revenue v. Anderson, 403 So.2d 397 (Fla. 1981); State ex rel. Szabo Food Services.
Inc. v. Dickinson, 286 So.2d 529 (Fla. 1973). See also Asphalt Pavers v. Dept. of
Revenue, 584 So.2d 55 (Fla. 1st DCA 1991), at 57 (citing the rule that exemptions from
tax are strictly construed against the taxpayer, with any ambiguity resolved in favor of
the administrative agency).
Narrowly and strictly construed, the exemption granted in s. 212.08(5)(a), F.S., applies
specifically to the items listed (cellophane wrappers, glue for tin and glass (apiarists),
mailing cases for honey, shipping cases, window cartons, and bailing wire) when used
by a farmer to contain, produce, or process an agricultural commodity, and cannot be
construed to include fencing material used to contain cattle on a farm. 1 Other items
listed in the suggested certificate in Rule 12A-1.087, F.A.C., such as clay pots and
receptacles, burlap, sacks, bags, cans, and other materials qualify only when used
purchased for one-time use in packaging or preparing an item for sale.

1

We also note that in response to Hurricanes Irma and Michael, the Legislature provided relief in the form
of refunds for sales tax paid on eligible purchases of fencing material and nonresidential farm building
materials that were used to repair or replace those types of items damaged by Hurricanes Irma and
Michael. See Ch. 2018-118, §§ 57, 58, and Ch. 2019-42, §§ 20, 21. This reiterates to us that the
Legislature intended to subject the items described in this TAA to Florida Sales Tax.

Technical Assistance Advisement
October 30, 2020
Florida Department of Revenue
Page 4

CONCLUSION
Fencing materials, hardware, and pre-fabricated containment devices used to contain
cattle on a farm are subject to Florida sales and use tax given there are no specific
exemptions granted under Chapter 212, F.S., for such materials.
This response constitutes a Technical Assistance Advisement under Section 213.22,
Fla. Stat., which is binding on the Department only under the facts and circumstances
described in the request for this advice, as specified in Section 213.22, Fla. Stat. 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, Fla. Stat., and are subject to disclosure to the
public under the conditions of Section 213.22, Fla. Stat. 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 lead to identification of the taxpayer. Your
response should be received by the Department within 10 days of the date of this letter.
Sincerely,

Richard R. Parsons
Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution

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