Senate Bill 695 proposes significant amendments to local sales and use tax regulations, enabling counties and municipalities to impose these taxes at rates ranging from 0.1 to 0.5 percent on tangible personal property and taxable services. The bill allows the revenue generated from these taxes to be used for any purpose designated by local governing bodies, rather than being limited to property tax relief. It also introduces new provisions for the administration of these taxes, clarifying that municipal sales and use tax revenues will not affect eligibility for expenditure restraint incentive program payments.

Additionally, the bill includes various amendments to existing legal language, such as provisions for the management of revenue sources and expenditures related to municipal services, including taxes, payments, and expenditures associated with emergency services and tax incremental districts. It specifies that these expenditures should not exceed a calculated sum based on inflation and valuation factors from the previous year. The act is set to take effect on July 1, 2026, allowing municipalities time to prepare for the new regulations.

Statutes affected:
Bill Text: 20.566(1)(g), 20.566, 20.566(1)(gi)(title), 20.835(4)(g), 20.835, 20.835(4)(gi)(title), 77.70(1), 77.70, 77.701(title), 77.701, 77.71(intro.), 77.71, 77.71(1), 77.71(2), 77.71(3), 77.71(4), 77.71(5), 79.05(2)(c), 79.05