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Citrus Growers Eligible for Expanded Electricity Exemption

LAKELAND, Fla. (July 9, 2007) – Florida citrus growers could benefit from a recent expansion of the sales tax exemption on electricity used to operate a farm.

The new exemption, which took effect July 1, means all electricity used in the processing or production of agricultural products on a farm is exempt from sales tax. This includes electricity used in offices, storage buildings and maintenance shops.

The previous law’s ambiguous language made it unclear whether certain uses were exempt. The revision could eliminate the need to install additional meters to segregate eligible and non-eligible electrical power used on the farm.

However, the new law does not exempt the sales tax on electricity used in homes or residences even if they are located on the farm. Growers should evaluate their on-farm electric usage to determine if they benefit from the expanded exemption.

If a grower benefits, he should contact his electric company and provide them with an exemption certificate. For more information on the exemption call Rusty Wiygul at (863) 682-1111.

Florida Citrus Mutual, founded in 1948 and based in Lakeland, is the state’s largest citrus growers organization with nearly 10,000 members. Please visit www.flcitrusmutual.com

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