Senate Bill sb0656
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Florida Senate - 2007 SB 656
By Senator Rich
34-492-07
1 A bill to be entitled
2 An act relating to local business taxes;
3 amending s. 205.0535, F.S.; authorizing certain
4 municipalities to reclassify businesses and
5 occupations and establish new business tax
6 rates before a specified date; providing that
7 ch. 205, F.S., does not prohibit a municipality
8 or county from decreasing or repealing a local
9 business tax; providing an effective date.
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11 Be It Enacted by the Legislature of the State of Florida:
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13 Section 1. Section 205.0535, Florida Statutes, is
14 amended to read:
15 205.0535 Reclassification and rate structure
16 revisions.--
17 (1) By October 1, 1995, any municipality or county
18 may, by ordinance, reclassify businesses, professions, and
19 occupations and may establish new rate structures, if the
20 conditions specified in subsections (2) and (3) are met.
21 However, a municipality that adopted a local business tax by
22 ordinance on or after October 1, 1995, may, before October 1,
23 2007, reclassify businesses, professions, and occupations and
24 establish new rate structures by ordinance if the conditions
25 specified in subsections (2) and (3) are met. A person who is
26 engaged in the business of providing local exchange telephone
27 service or a pay telephone service in a municipality or in the
28 unincorporated area of a county and who pays the business tax
29 under the category designated for telephone companies or a pay
30 telephone service provider certified pursuant to s. 364.3375
31 is deemed to have but one place of business or business
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Florida Senate - 2007 SB 656
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1 location in each municipality or unincorporated area of a
2 county. Pay telephone service providers may not be assessed a
3 business tax on a per-instrument basis.
4 (2) Before adopting a reclassification and revision
5 ordinance, the municipality or county must establish an equity
6 study commission and appoint its members. Each member of the
7 study commission must be a representative of the business
8 community within the local government's jurisdiction. Each
9 equity study commission shall recommend to the appropriate
10 local government a classification system and rate structure
11 for business taxes.
12 (3)(a) After the reclassification and rate structure
13 revisions have been transmitted to and considered by the
14 appropriate local governing body, it may adopt by majority
15 vote a new business tax ordinance. Except that a minimum tax
16 of up to $25 is permitted, the reclassification may not
17 increase the tax by more than the following: for receipts
18 costing $150 or less, 200 percent; for receipts costing more
19 than $150 but not more than $500, 100 percent; for receipts
20 costing more than $500 but not more than $2,500, 75 percent;
21 for receipts costing more than $2,500 but not more than
22 $10,000, 50 percent; and for receipts costing more than
23 $10,000, 10 percent; however, in no case may the tax on any
24 receipt be increased more than $5,000.
25 (b) The total annual revenue generated by the new rate
26 structure for the fiscal year following the fiscal year during
27 which the rate structure is adopted may not exceed:
28 1. For municipalities, the sum of the revenue base and
29 10 percent of that revenue base. The revenue base is the sum
30 of the business tax revenue generated by receipts issued for
31 the most recently completed local fiscal year or the amount of
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Florida Senate - 2007 SB 656
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1 revenue that would have been generated from the authorized
2 increases under s. 205.043(1)(b), whichever is greater, plus
3 any revenue received from the county under s. 205.033(4).
4 2. For counties, the sum of the revenue base, 10
5 percent of that revenue base, and the amount of revenue
6 distributed by the county to the municipalities under s.
7 205.033(4) during the most recently completed local fiscal
8 year. The revenue base is the business tax revenue generated
9 by receipts issued for the most recently completed local
10 fiscal year or the amount of revenue that would have been
11 generated from the authorized increases under s.
12 205.033(1)(b), whichever is greater, but may not include any
13 revenues distributed to municipalities under s. 205.033(4).
14 (c) In addition to the revenue increases authorized by
15 paragraph (b), revenue increases attributed to the increases
16 in the number of receipts issued are authorized.
17 (4) After the conditions specified in subsections (2)
18 and (3) are met, municipalities and counties may, every other
19 year thereafter, increase or decrease by ordinance the rates
20 of business taxes by up to 5 percent. The increase, however,
21 may not be enacted by less than a majority plus one vote of
22 the governing body. This chapter does not prohibit a
23 municipality or county from decreasing or repealing a local
24 business tax authorized under this chapter.
25 (5) A receipt may not be issued unless the federal
26 employer identification number or social security number is
27 obtained from the person to be taxed.
28 Section 2. This act shall take effect upon becoming a
29 law.
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Florida Senate - 2007 SB 656
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2 SENATE SUMMARY
3 Provides that municipalities that adopted a local
business tax on or after October 1, 1995, may reclassify
4 businesses and occupations and establish new business tax
rates before October 1, 2007. Provides that ch. 205,
5 F.S., does not prohibit a municipality or county from
decreasing or repealing a local business tax.
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