The bill amends various sections of Florida Statutes concerning local business taxes, emphasizing compliance and revenue generation. It mandates the Auditor General to reach out to non-compliant local governments, requiring them to demonstrate corrective actions within specified timeframes. New definitions and stipulations are introduced regarding the levying of business taxes, including a prohibition on certain municipalities from reclassifying businesses or altering tax structures. The bill establishes a cap on revenue generated from local business taxes, with provisions for refunds if this limit is exceeded. Key changes include the requirement for local governments to decrease tax rates starting October 1, 2025, and clarifications on how counties and municipalities can adopt or modify business tax ordinances.

Additionally, the bill removes specific language related to the calculation of revenue bases for municipalities and counties, allowing for the decrease or repeal of business taxes as long as new rates do not surpass the revenue base. It also requires audits of local government financial statements to include an affidavit confirming compliance with the new regulations. Counties that establish a new rate structure before October 1, 2025, will retain all business tax revenues from unincorporated areas, and the bill outlines the distribution of revenues collected from businesses within municipalities. New requirements for annual financial reports from local governmental entities are also included, detailing employee compensation and construction projects. The act is set to take effect on July 1, 2025.

Statutes affected:
S 1196 Filed: 11.40, 205.0315, 205.043, 205.0535, 205.0536, 215.97, 218.32, 489.537