Florida TEAM Card Program: A Guide for Sellers

As of January 1, 2024, the Florida Department of Agriculture and Consumer Services (FDACS) has introduced a new initiative aimed at streamlining the sales tax exemption process for agricultural purchases. This initiative, known as the Florida TEAM Card Program, allows qualified farmers to use a TEAM Card as an alternative to the traditional paper exemption certificates. This blog will explore the details of the TEAM Card Program, its implications for sellers, and how it integrates with existing tax exemption practices.

What is the Florida TEAM Card?

The Florida TEAM (Tax Exempt Agricultural Materials) Card is a card issued to farmers who meet specific criteria set by the Florida Department of Revenue (DOR). The card represents a simplified method for farmers to claim sales tax exemptions on agricultural purchases. Instead of filling out a paper exemption certificate for each transaction, farmers can now present their TEAM Card to sellers, streamlining the process for both the buyer and the seller.

For a visual reference, a sample TEAM Card can be viewed on the FDACS website here.

How Does the TEAM Card Work?

For sellers, the TEAM Card presents a new way to document and verify tax-exempt sales. When a qualified farmer presents their TEAM Card, sellers are required to document the exempt nature of the sale. There are a few ways sellers can do this:

1. Obtain a Copy of the TEAM Card: Sellers can make a copy of the farmer’s TEAM Card for their records. This documentation ensures that the sale is correctly categorized as tax-exempt and helps in case of any future audits.
2. Transaction Authorization Number: Instead of copying the TEAM Card, sellers can request a transaction authorization number from the Department of Revenue. This number is valid for a single transaction and can be obtained through the Department’s Certificate Verification System at floridarevenue.com/taxes/certificates or by calling the automated toll-free telephone verification system at (877) 357-3725.
3. Vendor Authorization Number: For regular customers who are qualified farmers, sellers can request a vendor authorization number. This number is specific to the customer and is valid for documenting exempt sales during the effective period of the farmer’s TEAM Card. This can be requested through the Department’s Certificate Verification System as well.

Documenting Exempt Sales

Accurate documentation is crucial for maintaining compliance with tax regulations. When a TEAM Card is presented, it is essential for sellers to follow these procedures:

• Keep a Record: Whether you choose to copy the TEAM Card or use an authorization number, maintaining proper records of exempt sales is critical. This documentation should include the date of the transaction, the amount of the sale, and the details of the exemption.
• Liability Protection: Sellers who accept the TEAM Card in good faith are protected from liability for any tax due on sales made to the farmer during the card’s effective period. This protection underscores the importance of verifying the card’s validity and maintaining accurate records.

Alternative: Using Exemption Certificates

Farmers who do not wish to use a TEAM Card or do not qualify for one can still use paper exemption certificates. These certificates must include:

• Purchaser’s Name and Address: The certificate must clearly state the purchaser’s identity and contact information.
• Reason for Exemption: The certificate should specify why the item qualifies for the exemption, referencing section 212.08 of the Florida Statutes.
• Signature: The certificate must be signed by the purchaser or an authorized representative.

For guidelines on exemption certificates, sellers can refer to Rule 12A-1.087 of the Florida Administrative Code (F.A.C.), available at flrules.org.

Conclusion

The Florida TEAM Card Program represents a significant shift in how agricultural tax exemptions are processed. By providing farmers with a convenient alternative to paper certificates, the program aims to reduce administrative burdens and enhance compliance. For sellers, understanding and correctly implementing the TEAM Card procedures are essential for maintaining proper documentation and avoiding potential tax liabilities.

By following the guidelines provided by the Florida Department of Revenue and staying informed about any updates, sellers can ensure a smooth transition to this new system and continue to support Florida’s agricultural industry effectively.

References

• Florida Department of Revenue. (2024). Florida Farm Tax Exempt Agricultural Materials (TEAM) Card Program: Information for Sellers. Retrieved from floridarevenue.com/taxes/Documents/flFarmTeamCardFAQs.pdf
• Florida Administrative Code. (2024). Rule 12A-1.087 – Exemption Certificates for Items Purchased for Agricultural Use. Retrieved from flrules.org
• Florida Administrative Code. (2024). Rule 12A-1.116 – Vendor Authorization Numbers. Retrieved from flrules.org
• Florida Statutes. (2024). Section 212.08 – Sales Tax Exemptions. Retrieved from floridarevenue.com

By ensuring compliance with these guidelines, sellers will play a crucial role in the successful implementation of the TEAM Card Program, benefiting both their businesses and Florida’s agricultural community.