The bill amends section 200.065 of the Florida Statutes, which pertains to the calculation of ad valorem tax millage rates. 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 maximum millage rate that may be levied at 102 percent of the rolled-back rate, prohibiting any higher rates from being adopted. The bill 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 a two-thirds or unanimous vote of the governing body. It clarifies that any taxing authority that collects ad valorem revenues exceeding 102 percent of the rolled-back rate must address the excess in the specified manner. The act is set to take effect on July 1, 2025.