Bill Text: FL S0868 | 2019 | Regular Session | Introduced
Bill Title: Local Business Taxes
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-05-03 - Died in Community Affairs [S0868 Detail]
Download: Florida-2019-S0868-Introduced.html
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 $25However, the governing body must first give at least3614 days’ public notice between the first and last reading of the37resolution or ordinance by publishing a notice in a newspaper of38general circulation within its jurisdiction as defined by law.39The public notice must contain the proposed classifications and40rates 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 a49new business tax ordinance under s. 205.0315, a business tax50levied under this subsection may not exceed the rate provided by51this chapter in effect for the year beginning October 1, 1971;52however, beginning October 1, 1980, the county governing body53may increase business taxes authorized by this chapter. The54amount of the increase above the tax rate levied on October 1,551971, for taxes levied at a flat rate may be up to 100 percent56for business taxes that are $100 or less; 50 percent for57business taxes that are between $101 and $300; and 25 percent58for business taxes that are more than $300. Beginning October 1,591982, the increase may not exceed 25 percent for taxes levied at60graduated or per unit rates. Authority to increase business61taxes does not apply to licenses or receipts granted to any62utility franchised by the county for which a franchise fee is63paid.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) AAnyreceipt 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, but70not 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, aanyreceipt 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 not78less 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 subsection85does not apply to counties that have established a new rate86structure 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 91followingthe month of receipt.This subsection does not apply92to counties that have established a new rate structure under s.93205.0535.94(6)(a)Each county, as defined in s. 125.011(1), or any95county adjacent thereto may levy and collect, by an ordinance96enacted by the governing body of the county, an additional97business tax up to 50 percent of the appropriate business tax98imposed under subsection (1).99(b)Subsections (4) and (5) do not apply to any revenues100derived from the additional tax imposed under this subsection.101Proceeds from the additional business tax must be placed in a102separate interest-earning account, and the governing body of the103county shall distribute this revenue, plus accrued interest,104each fiscal year to an organization or agency designated by the105governing body of the county to oversee and implement a106comprehensive economic development strategy through advertising,107promotional activities, and other sales and marketing108techniques.109(c)An ordinance that levies an additional business tax110under this subsection may not be adopted after January 1, 1995.111 (6)(7)Notwithstandingany other provisions ofthis 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 appropriate120resolution 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 governing125body must first give at least 14 days’ public notice between the126first and last reading of the resolution or ordinance by127publishing the notice in a newspaper of general circulation128within its jurisdiction as defined by law. The notice must129contain the proposed classifications and rates applicable to the130business tax.The business tax may be levied on: 131 (1) AAnyperson 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) AAnyperson 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) AAnyperson 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 or152adopts a new business tax ordinance under s. 205.0315, a153business tax levied under this subsection may not exceed the154rate in effect in the municipality for the year beginning155October 1, 1971; however, beginning October 1, 1980, the156municipal governing body may increase business taxes authorized157by this chapter. The amount of the increase above the tax rate158levied on October 1, 1971, for taxes levied at a flat rate may159be up to 100 percent for business taxes that are $100 or less;16050 percent for business taxes that are between $101 and $300;161and 25 percent for business taxes that are more than $300.162Beginning October 1, 1982, an increase may not exceed 25 percent163for taxes levied at graduated or per unit rates. Authority to164increase business taxes does not apply to receipts or licenses165granted to any utility franchised by the municipality for which166a 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) AAnybusiness 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,173but 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, aanyreceipt 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 not181less 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 $25Except that a minimum tax of up to190$25 is permitted, the reclassification may not increase the tax191by more than the following: for receipts costing $150 or less,192200 percent; for receipts costing more than $150 but not more193than $500, 100 percent; for receipts costing more than $500 but194not more than $2,500, 75 percent; for receipts costing more than195$2,500 but not more than $10,000, 50 percent; and for receipts196costing more than $10,000, 10 percent; however, in no case may197the 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 yearor the amount of revenue205that would have been generated from the authorized increases206under 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 yearor the amount of revenue214that would have been generated from the authorized increases215under 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) Notwithstandingthe provisions ofs. 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, adopted225pursuant to the procedure established in s. 205.032 or s.226205.042,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.