This 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 new property values. The bill specifies that the rolled-back rate will now be calculated "inclusive" of new construction and other specified factors. Additionally, it establishes that the maximum millage rate that can be levied in a fiscal year is set at 102 percent of the rolled-back rate, prohibiting any higher rate from being adopted unless under specific conditions that have been removed from the current law.

Furthermore, the bill introduces a requirement that any ad valorem revenues collected in excess of 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 revenues. The act is set to take effect on July 1, 2025.