The bill amends section 200.065 of the Florida Statutes, which pertains to the calculation of millage rates for ad valorem taxes. It revises the method for determining the rolled-back rate by changing the language to indicate that the calculation will be "inclusive" of certain property value changes rather than "exclusive." Additionally, the bill establishes a new maximum millage rate that may be levied at 102 percent of the rolled-back rate, prohibiting any higher rates from being adopted. It also mandates that any excess revenues collected beyond this threshold must either be returned to taxpayers on a prorated basis or used to pay down debt.

Furthermore, the bill removes previous provisions that allowed for higher millage rates to be adopted under specific conditions, such as requiring a two-thirds or unanimous vote from governing bodies. It clarifies that any taxing authority that collects ad valorem revenues exceeding the 102 percent limit must address the excess appropriately. The act is set to take effect on July 1, 2025.