House Bill 503 (2025) proposes significant amendments to Florida's local business tax structure, focusing on compliance and revenue generation. The bill mandates the Auditor General to reach out to local governments that fail to comply with tax regulations, requiring them to provide evidence of corrective actions within specified timeframes. It introduces provisions that prevent the reclassification of businesses subject to certain tax rates and limits the revenue from local business taxes to a defined base. Additionally, the bill establishes a framework for local governments to manage business taxes, prohibiting any increases or modifications to tax rate structures after a certain date unless they adhere to the new regulations.

Key changes include the removal of specific percentage rates for business tax receipts, which previously capped at 200 percent for certain thresholds, and the introduction of provisions allowing local governments to adjust tax rates by up to 5 percent every other year with a majority vote. The bill also requires audits of local government financial statements to be accompanied by 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 outlines revenue distribution from incorporated municipalities. Certain municipalities and fiscally constrained counties are exempt from some provisions, ensuring a tailored application based on local financial conditions. 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