On January 1, 2024, Florida began issuing Florida Tax Exempt Agricultural Materials (TEAM) Cards to farmers who applied to and were approved by the Florida Department of Revenue (DOR). The TEAM Card provides a new method for qualified farmers to claim certain sales tax exemptions on items purchased for agricultural use. When making tax-exempt purchases, farmers can present the plastic wallet-sized card to sellers instead of preparing paper exemption certificates for each purchase. Farmers who do not qualify for a TEAM Card or do not wish to obtain one can continue to provide a properly completed paper exemption certificate for tax-exempt agricultural purchases.
Sellers who make a tax-exempt sale to a qualified farmer using a TEAM Card are required to obtain a copy of the TEAM Card for purposes of documenting exempt sales. A seller who accepts a TEAM Card in good faith will not be held liable for any tax due on sales made to the farmer during the effective period on the card.
Instead of obtaining a copy of a TEAM Card, a seller may document the exempt sale by requesting a transaction authorization number, which is valid for a single transaction only, from the DOR. Sellers can request a transaction authorization number online or via phone.
Sellers who make sales to qualified farmers who are regular customers can request a vendor authorization number instead of maintaining a copy of the farmer’s TEAM Card or obtaining a transaction authorization number. The vendor authorization number is a customer-specific number valid for documenting exempt sales during the effective period of the farmer’s TEAM Card. Sellers can request a vendor authorization number using the DOR’s online Certificate Verification System. For more information on the TEAM Card program, including how to request authorization numbers, visit the Florida DOR TEAM Card FAQ page.
Qualified farmers and sellers in Florida will want to take note of this new option provided by the state as it can help ease their administrative burden on tax-exempt purchases and sales. (Tax Information Publication, No. 24A01-01, Florida Department of Revenue, February 29, 2024)