Florida Senate - 2019 SB 868
By Senator Hutson
7-01341-19 2019868__
1 A bill to be entitled
2 An act relating to local business taxes; amending s.
3 205.032, F.S.; revising the authority of a governing
4 body of a county to levy business taxes; providing
5 retroactive applicability; specifying a limit on such
6 taxes; deleting procedures for levying business taxes;
7 amending s. 205.033, F.S.; reducing the maximum fees
8 for certain receipt transfers; deleting exceptions
9 from certain apportionment and distribution
10 requirements for certain counties; deleting provisions
11 authorizing certain counties to levy and collect
12 additional business taxes; conforming provisions to
13 changes made by the act; amending s. 205.042, F.S.;
14 revising the authority of a governing body of an
15 incorporated municipality to levy business taxes;
16 providing retroactive applicability; specifying a
17 limit on such taxes; deleting procedures for levying
18 business taxes; amending s. 205.043, F.S.; reducing
19 the maximum fees for certain receipt transfers;
20 conforming a provision to changes made by the act;
21 amending ss. 205.0535 and 205.054, F.S.; conforming
22 provisions to changes made by the act; providing an
23 effective date.
24
25 Be It Enacted by the Legislature of the State of Florida:
26
27 Section 1. Section 205.032, Florida Statutes, is amended to
28 read:
29 205.032 Levy; counties.—The governing body of a county may
30 continue to levy, by appropriate resolution or ordinance, a
31 business tax for the privilege of engaging in or managing any
32 business, profession, or occupation within its jurisdiction if
33 an appropriate resolution or ordinance was adopted before
34 January 1, 2019. The business tax imposed on a taxpayer may not
35 exceed $25 However, the governing body must first give at least
36 14 days’ public notice between the first and last reading of the
37 resolution or ordinance by publishing a notice in a newspaper of
38 general circulation within its jurisdiction as defined by law.
39 The public notice must contain the proposed classifications and
40 rates applicable to the business tax.
41 Section 2. Section 205.033, Florida Statutes, is amended to
42 read:
43 205.033 Conditions for levy; counties.—
44 (1) The following conditions are imposed on the authority
45 of a county governing body to levy a business tax:
46 (a) The tax must be based upon reasonable classifications
47 and must be uniform throughout any class.
48 (b) Unless the county implements s. 205.0535 or adopts a
49 new business tax ordinance under s. 205.0315, a business tax
50 levied under this subsection may not exceed the rate provided by
51 this chapter in effect for the year beginning October 1, 1971;
52 however, beginning October 1, 1980, the county governing body
53 may increase business taxes authorized by this chapter. The
54 amount of the increase above the tax rate levied on October 1,
55 1971, for taxes levied at a flat rate may be up to 100 percent
56 for business taxes that are $100 or less; 50 percent for
57 business taxes that are between $101 and $300; and 25 percent
58 for business taxes that are more than $300. Beginning October 1,
59 1982, the increase may not exceed 25 percent for taxes levied at
60 graduated or per unit rates. Authority to increase business
61 taxes does not apply to licenses or receipts granted to any
62 utility franchised by the county for which a franchise fee is
63 paid.
64 (b)(c) A receipt is not valid for more than 1 year, and all
65 receipts expire on September 30 of each year, except as
66 otherwise provided by law.
67 (2) A Any receipt may be transferred to a new owner, when
68 there is a bona fide sale of the business, upon payment of a
69 transfer fee of up to 10 percent of the annual business tax, but
70 not less than $3 nor more than $25, and presentation of the
71 original receipt and evidence of the sale. Such transfer fee
72 must be at least $3 but not more than $10.
73 (3) Upon written request and presentation of the original
74 receipt, a any receipt may be transferred from one location to
75 another location in the same county upon payment of a transfer
76 fee of up to 10 percent of the annual business tax. Such
77 transfer fee must be at least $3 but not more than $10,but not
78 less than $3 nor more than $25.
79 (4) The revenues derived from the business tax, exclusive
80 of the costs of collection and any credit given for municipal
81 business taxes, shall be apportioned between the unincorporated
82 area of the county and the incorporated municipalities located
83 therein by a ratio derived by dividing their respective
84 populations by the population of the county. This subsection
85 does not apply to counties that have established a new rate
86 structure under s. 205.0535.
87 (5) The revenues so apportioned shall be sent to the
88 governing authority of each municipality, according to its
89 ratio, and to the governing authority of the county, according
90 to the ratio of the unincorporated area, within 15 days after
91 following the month of receipt. This subsection does not apply
92 to counties that have established a new rate structure under s.
93 205.0535.
94 (6)(a) Each county, as defined in s. 125.011(1), or any
95 county adjacent thereto may levy and collect, by an ordinance
96 enacted by the governing body of the county, an additional
97 business tax up to 50 percent of the appropriate business tax
98 imposed under subsection (1).
99 (b) Subsections (4) and (5) do not apply to any revenues
100 derived from the additional tax imposed under this subsection.
101 Proceeds from the additional business tax must be placed in a
102 separate interest-earning account, and the governing body of the
103 county shall distribute this revenue, plus accrued interest,
104 each fiscal year to an organization or agency designated by the
105 governing body of the county to oversee and implement a
106 comprehensive economic development strategy through advertising,
107 promotional activities, and other sales and marketing
108 techniques.
109 (c) An ordinance that levies an additional business tax
110 under this subsection may not be adopted after January 1, 1995.
111 (6)(7) Notwithstanding any other provisions of this
112 chapter, the revenue received from a county business tax may be
113 used for overseeing and implementing a comprehensive economic
114 development strategy through advertising, promotional
115 activities, and other sales and marketing techniques.
116 Section 3. Section 205.042, Florida Statutes, is amended to
117 read:
118 205.042 Levy; municipalities.—The governing body of an
119 incorporated municipality may continue to levy, by appropriate
120 resolution or ordinance, a business tax for the privilege of
121 engaging in or managing any business, profession, or occupation
122 within its jurisdiction if an appropriate resolution or
123 ordinance was adopted before January 1, 2019. The business tax
124 imposed on a taxpayer may not exceed $25. However, the governing
125 body must first give at least 14 days’ public notice between the
126 first and last reading of the resolution or ordinance by
127 publishing the notice in a newspaper of general circulation
128 within its jurisdiction as defined by law. The notice must
129 contain the proposed classifications and rates applicable to the
130 business tax. The business tax may be levied on:
131 (1) A Any person who maintains a permanent business
132 location or branch office within the municipality, for the
133 privilege of engaging in or managing any business within its
134 jurisdiction.
135 (2) A Any person who maintains a permanent business
136 location or branch office within the municipality, for the
137 privilege of engaging in or managing any profession or
138 occupation within its jurisdiction.
139 (3) A Any person who does not qualify under subsection (1)
140 or subsection (2) and who transacts any business or engages in
141 any occupation or profession in interstate commerce, if the
142 business tax is not prohibited by s. 8, Art. I of the United
143 States Constitution.
144 Section 4. Subsections (1), (2), and (3) of section
145 205.043, Florida Statutes, are amended to read:
146 205.043 Conditions for levy; municipalities.—
147 (1) The following conditions are imposed on the authority
148 of a municipal governing body to levy a business tax:
149 (a) The tax must be based upon reasonable classifications
150 and must be uniform throughout any class.
151 (b) Unless the municipality implements s. 205.0535 or
152 adopts a new business tax ordinance under s. 205.0315, a
153 business tax levied under this subsection may not exceed the
154 rate in effect in the municipality for the year beginning
155 October 1, 1971; however, beginning October 1, 1980, the
156 municipal governing body may increase business taxes authorized
157 by this chapter. The amount of the increase above the tax rate
158 levied on October 1, 1971, for taxes levied at a flat rate may
159 be up to 100 percent for business taxes that are $100 or less;
160 50 percent for business taxes that are between $101 and $300;
161 and 25 percent for business taxes that are more than $300.
162 Beginning October 1, 1982, an increase may not exceed 25 percent
163 for taxes levied at graduated or per unit rates. Authority to
164 increase business taxes does not apply to receipts or licenses
165 granted to any utility franchised by the municipality for which
166 a franchise fee is paid.
167 (b)(c) A receipt is not valid for more than 1 year and all
168 receipts expire on September 30 of each year, except as
169 otherwise provided by law.
170 (2) A Any business receipt may be transferred to a new
171 owner, when there is a bona fide sale of the business, upon
172 payment of a transfer fee of up to 10 percent of the annual tax,
173 but not less than $3 nor more than $25, and presentation of the
174 original receipt and evidence of the sale. Such transfer fee
175 must be at least $3 but not more than $10.
176 (3) Upon written request and presentation of the original
177 receipt, a any receipt may be transferred from one location to
178 another location in the same municipality upon payment of a
179 transfer fee of up to 10 percent of the annual tax. Such
180 transfer fee must be at least $3 but not more than $10, but not
181 less than $3 nor more than $25.
182 Section 5. Paragraphs (a) and (b) of subsection (3) of
183 section 205.0535, Florida Statutes, are amended to read:
184 205.0535 Reclassification and rate structure revisions.—
185 (3)(a) After the reclassification and rate structure
186 revisions have been transmitted to and considered by the
187 appropriate local governing body, it may adopt by majority vote
188 a new business tax ordinance. The business tax imposed on a
189 taxpayer may not exceed $25 Except that a minimum tax of up to
190 $25 is permitted, the reclassification may not increase the tax
191 by more than the following: for receipts costing $150 or less,
192 200 percent; for receipts costing more than $150 but not more
193 than $500, 100 percent; for receipts costing more than $500 but
194 not more than $2,500, 75 percent; for receipts costing more than
195 $2,500 but not more than $10,000, 50 percent; and for receipts
196 costing more than $10,000, 10 percent; however, in no case may
197 the tax on any receipt be increased more than $5,000.
198 (b) The total annual revenue generated by the new rate
199 structure for the fiscal year following the fiscal year during
200 which the rate structure is adopted may not exceed:
201 1. For municipalities, the sum of the revenue base and 10
202 percent of that revenue base. The revenue base is the sum of the
203 business tax revenue generated by receipts issued for the most
204 recently completed local fiscal year or the amount of revenue
205 that would have been generated from the authorized increases
206 under s. 205.043(1)(b), whichever is greater, plus any revenue
207 received from the county under s. 205.033(4).
208 2. For counties, the sum of the revenue base, 10 percent of
209 that revenue base, and the amount of revenue distributed by the
210 county to the municipalities under s. 205.033(4) during the most
211 recently completed local fiscal year. The revenue base is the
212 business tax revenue generated by receipts issued for the most
213 recently completed local fiscal year or the amount of revenue
214 that would have been generated from the authorized increases
215 under s. 205.033(1)(b), whichever is greater, but may not
216 include any revenues distributed to municipalities under s.
217 205.033(4).
218 Section 6. Subsection (1) of section 205.054, Florida
219 Statutes, is amended to read:
220 205.054 Business tax; partial exemption for engaging in
221 business or occupation in enterprise zone.—
222 (1) Notwithstanding the provisions of s. 205.033(1)(a) or
223 s. 205.043(1)(a), the governing body of a county or municipality
224 may authorize by appropriate resolution or ordinance, adopted
225 pursuant to the procedure established in s. 205.032 or s.
226 205.042, the exemption of 50 percent of the business tax levied
227 for the privilege of engaging in or managing any business,
228 profession, or occupation in the respective jurisdiction of the
229 county or municipality when such privilege is exercised at a
230 permanent business location or branch office located in an
231 enterprise zone. In adopting the resolution or ordinance, the
232 governing body must first give at least 14 days’ public notice
233 between the first and last reading of the resolution or
234 ordinance by publishing a notice in a newspaper of general
235 circulation within its jurisdiction as defined by law. The
236 public notice must contain the proposed classifications and
237 rates applicable to the business tax.
238 Section 7. This act shall take effect July 1, 2019.