HB 0373

1	A bill to be entitled
2	An act relating to local occupational license taxes;
3	amending ss. 205.0315, 205.043, and 205.0535, F.S.;
4	revising, updating, and conforming criteria and provisions
5	for ordinances imposing local occupational license taxes;
6	removing limitations on the authority of municipalities
7	and counties to reclassify businesses, professions, and
8	occupations and establish new rate structures for
9	occupational license taxes; requiring the establishment of
10	a review board rather than an equity study commission for
11	certain purposes; deleting a schedule of limitations on
12	increases in license taxes; authorizing increasing,
13	decreasing, or eliminating local occupational license tax
14	rates; specifying a limit on increases in such tax rates;
15	providing an effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Section 205.0315, Florida Statutes, is amended
20	to read:
21	205.0315  Ordinance adoption after October 1,
22	1995.--Beginning October 1, 1995, a county or municipality that
23	has not adopted an occupational license tax ordinance or
24	resolution may adopt an occupational license tax ordinance. The
25	occupational license tax rate structure and classifications in
26	the adopted ordinance must be reasonable and based upon the rate
27	structure and classifications prescribed in ordinances adopted
28	by adjacent local governments or that have implemented s.
29	205.0535. If no adjacent local government has implemented s.
30	205.0535, or if the governing body of the county or municipality
31	finds that the rate structures or classifications of adjacent
32	local governments are unreasonable, the rate structure or
33	classifications prescribed in its ordinance may be based upon
34	those prescribed in ordinances adopted by local governments that
35	have implemented s. 205.0535 in counties or municipalities that
36	have a comparable population.
37	Section 2.  Section 205.043, Florida Statutes, is amended
38	to read:
39	205.043  Conditions for levy; municipalities.--
40	(1)  The following conditions are imposed on the authority
41	of a municipal governing body to levy an occupational license
42	tax:
43	(a)  The tax must be based upon reasonable classifications
44	and must be uniform throughout any class.
45	(b)  Unless the municipality implements s. 205.0535 or
46	adopts a new occupational license tax ordinance under s.
47	205.0315, an occupational license tax levied under this
48	subsection may not exceed the rate in effect in the municipality
49	for the year beginning October 1, 1971; however, beginning
50	October 1, 1980, the municipal governing body may increase
51	occupational license taxes authorized by this chapter. The
52	amount of the increase above the license tax rate levied on
53	October 1, 1971, for license taxes levied at a flat rate may be
54	up to 100 percent for occupational license taxes that are $100
55	or less; 50 percent for occupational license taxes that are
56	between $101 and $300; and 25 percent for occupational license
57	taxes that are more than $300. Beginning October 1, 1982, an
58	increase may not exceed 25 percent for license taxes levied at
59	graduated or per unit rates. Authority to increase occupational
60	license taxes does not apply to licenses granted to any utility
61	franchised by the municipality for which a franchise fee is
62	paid.
63	(b)(c)  A license is not valid for more than 1 year and all
64	licenses expire on September 30 of each year, except as
65	otherwise provided by law.
66	(2)  Any business license may be transferred to a new
67	owner, when there is a bona fide sale of the business, upon
68	payment of a transfer fee of up to 10 percent of the annual
69	license tax, but not less than $3 nor more than $25, and
70	presentation of the original license and evidence of the sale.
71	(3)  Upon written request and presentation of the original
72	license, any license may be transferred from one location to
73	another location in the same municipality upon payment of a
74	transfer fee of up to 10 percent of the annual license tax, but
75	not less than $3 nor more than $25.
76	(4)  If the governing body of the county in which the
77	municipality is located has levied an occupational license tax
78	or subsequently levies such a tax, the collector of the county
79	tax may issue the license and collect the tax thereon.
80	(5)  Any person who is engaged in the business of providing
81	local exchange telephone service or pay telephone service in a
82	municipality or in the unincorporated area of a county and who
83	pays the occupational license tax under the category designated
84	for telephone companies or a pay telephone service provider
85	certified pursuant to s. 364.3375 is deemed to have only one
86	place of business or business location in each municipality or
87	unincorporated area of a county. Pay telephone service providers
88	may not be assessed an occupational license tax on a per-
89	instrument basis.
90	Section 3.  Subsections (1) and (2), paragraphs (a) and (b)
91	of subsection (3), and subsection (4) of section 205.0535,
92	Florida Statutes, are amended to read:
93	205.0535  Reclassification and rate structure revisions.--
94	(1)  Municipalities and counties By October 1, 1995, any
95	municipality or county may, by ordinance, reclassify businesses,
96	professions, and occupations and may establish new rate
97	structures, if the conditions specified in subsections (2) and
98	(3) are met. A person who is engaged in the business of
99	providing local exchange telephone service or a pay telephone
100	service in a municipality or in the unincorporated area of a
101	county and who pays the occupational license tax under the
102	category designated for telephone companies or a pay telephone
103	service provider certified pursuant to s. 364.3375 is deemed to
104	have but one place of business or business location in each
105	municipality or unincorporated area of a county. Pay telephone
106	service providers may not be assessed an occupational license
107	tax on a per-instrument basis.
108	(2)  Before adopting a reclassification and revision
109	ordinance, the municipality or county shall appoint a board to
110	review the current classifications and rate structure and to
111	must establish an equity study commission and appoint its
112	members. Each member of the study commission must be a
113	representative of the business community within the local
114	government's jurisdiction. Each equity study commission shall
115	recommend to the appropriate local government a classification
116	system and rate structure for local occupational license taxes.
117	(3)(a)  After the reclassification and rate structure
118	revisions have been transmitted to and considered by the
119	appropriate local governing body, it may adopt by majority vote
120	a new occupational license tax ordinance. Except that a minimum
121	license tax of up to $25 is permitted, the reclassification
122	shall not increase the occupational license tax by more than the
123	following: for licenses costing $150 or less, 200 percent; for
124	licenses costing more than $150 but not more than $500, 100
125	percent; for licenses costing more than $500 but not more than
126	$2,500, 75 percent; for licenses costing more than $2,500 but
127	not more than $10,000, 50 percent; and for licenses costing more
128	than $10,000, 10 percent; however, in no case may any license be
129	increased more than $5,000.
130	(b)  The total annual revenue generated by the new rate
131	structure for the fiscal year following the fiscal year during
132	which the rate structure is adopted may not exceed:
133	1.  For municipalities, the sum of the revenue base and 10
134	percent of that revenue base. The revenue base is the sum of the
135	occupational license tax revenue generated by licenses issued
136	for the most recently completed local fiscal year or the amount
137	of revenue that would have been generated from the authorized
138	increases under s. 205.043(1)(b), whichever is greater, plus any
139	revenue received from the county under s. 205.033(4).
140	2.  For counties, the sum of the revenue base, 10 percent
141	of that revenue base, and the amount of revenue distributed by
142	the county to the municipalities under s. 205.033(4) during the
143	most recently completed local fiscal year. The revenue base is
144	the occupational license tax revenue generated by licenses
145	issued for the most recently completed local fiscal year or the
146	amount of revenue that would have been generated from the
147	authorized increases under s. 205.033(1)(b), whichever is
148	greater, but may not include any revenues distributed to
149	municipalities under s. 205.033(4).
150	(4)  After the conditions specified in subsections (2) and
151	(3) are met, Municipalities and counties may, at any time after
152	adoption of the ordinance establishing the occupational license
153	tax every other year thereafter, increase, decrease, or
154	eliminate by ordinance the rates of local occupational license
155	taxes. Any increase shall not exceed by up to 5 percent. Any The
156	increase, however, may not be enacted by less than a majority
157	plus one vote of the governing body.
158	Section 4.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.