House Bill 503 proposes significant amendments to Florida's local business tax structure, focusing on 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 provisions that prevent local governments from increasing or modifying business tax rates or classifications after a certain date unless they adhere to new regulations. Additionally, the bill establishes a revenue base that caps the total revenue from business taxes and outlines a process for adjusting tax rates if this base is exceeded, including refund requirements for businesses.

Key changes include the removal of previous provisions that limited tax increases based on receipts and the introduction of a system allowing municipalities and counties to adjust tax rates by up to 5% every other year, contingent on a majority plus one vote from the governing body. The bill also mandates audits of local government financial statements, requiring an affidavit confirming compliance with the new tax provisions. It specifies that counties establishing new rate structures before October 1, 2025, will retain all business tax revenues from unincorporated areas and clarifies revenue apportionment from incorporated areas. 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