The bill amends section 200.065 of the Florida Statutes, which pertains to the computation of ad valorem tax rates. It revises the method for calculating the rolled-back rate, which is the millage rate that would generate the same tax revenue as the previous year, excluding certain adjustments. The new language specifies that the rolled-back rate will be calculated "inclusive" of various factors, such as new construction and geographic boundary changes. Additionally, the bill establishes that the maximum millage rate that can be levied in a fiscal year is set at 102 percent of the rolled-back rate, and it prohibits the adoption of a higher rate without specific conditions.

Furthermore, the bill introduces a requirement that any excess ad valorem revenues collected beyond 102 percent of the rolled-back rate must be returned to taxpayers on a prorated basis or used to pay down debt. This change aims to ensure that taxpayers are not overburdened by excessive tax collections. The act is set to take effect on July 1, 2025.