This bill amends various sections of Florida Statutes concerning local business taxes, emphasizing compliance and revenue generation. It mandates that the Auditor General reach out to local governments not adhering to specific provisions, requiring them to demonstrate corrective actions within designated timeframes. The bill allows certain entities to continue levying specific taxes while prohibiting changes to tax ordinances after October 1, 2025, with exceptions. It also revises conditions for taxing authorities regarding business tax levies and establishes new definitions and requirements for local business tax ordinances. Notably, municipalities are prohibited from reclassifying businesses or creating new rate structures after the specified date, and there is a cap on revenue generated from business taxes, which cannot exceed a defined revenue base.

Additionally, the bill introduces provisions for local governments to decrease or repeal business taxes, ensuring that new rates do not surpass the established revenue base. It specifies that counties implementing a new rate structure before October 1, 2025, will retain all business tax revenues from unincorporated areas and outlines revenue apportionment from businesses within municipalities. The bill also requires audits of local government financial statements to include an affidavit confirming compliance with the new regulations, along with updates to the audit threshold for nonstate entities and modified reporting requirements for local governmental entities. 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