House Bill 503 amends various sections of Florida Statutes concerning local business taxes, emphasizing compliance and revenue generation. The bill mandates that the Auditor General contact local governments not in compliance with tax regulations, requiring them to provide evidence of corrective actions within specified timeframes. It introduces new definitions regarding the reclassification of businesses and sets a maximum revenue limit for local business taxes, ensuring that revenues do not exceed a defined base. Key changes include the prohibition of reclassification for businesses subject to certain tax rates and a requirement for local governments to decrease business taxes starting October 1, 2025, unless a new tax ordinance is adopted.

The bill also removes previous provisions that limited tax increases based on receipts, allowing local governments greater flexibility in adjusting tax rates. It permits the decrease or repeal of business taxes as long as the new rates remain within the established revenue base. Additionally, local governments undergoing audits must submit an affidavit confirming compliance with the new provisions. The bill establishes guidelines for counties implementing new rate structures before October 1, 2025, ensuring they retain all business tax revenues from unincorporated areas and includes provisions for revenue distribution based on population ratios. The act is set to take effect on July 1, 2025.

Statutes affected:
H 503 Filed: 11.40, 205.0315, 205.043, 205.0535, 205.0536, 215.97, 218.32, 489.537