The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Community Affairs
BILL: SB 1194
INTRODUCER: Senator Boyd
SUBJECT: Local Tax Referenda Requirements
DATE: January 13, 2022
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hunter Ryon CA Pre-meeting
2. FT
3. AP
I. Summary:
SB 1194 requires referenda authorizing certain optional local taxes to be held at a general
election. The affected taxes are:
Tourist development tax
Areas of critical state concern tourist impact tax
Children’s services independent special district tax
County temporary excess ad valorem millage
Municipal temporary excess ad valorem millage
County transportation motor fuel tax
Local option fuel taxes
School district millages
Presently, the referenda approving the above local taxes are held at elections called by the
applicable local governing body. Such elections may be special elections or may be held in
conjunction with other local elections, primary elections or general elections.
The bill takes effect July 1, 2022.
II. Present Situation:
Local Option Taxes
Counties and municipalities have authority to levy a variety of optional taxes conditioned upon
approval of a majority of electors voting in a referendum. Presently, the referenda approving the
local taxes contemplated by the bill are held at elections called by the applicable local governing
body. Such elections may be special elections or may be held in conjunction with other local
REVISED: BILL: SB 1194 Page 2
elections, primary elections or general elections.
1
The taxes addressed in the bill are described
below.
Tourist Development Tax
The Local Option Tourist Development Act
2
authorizes counties to levy five separate taxes on
transient rental
3
transactions (“tourist development taxes” or “TDTs”). Depending on a county’s
eligibility to levy such taxes, the maximum tax rate varies from a minimum of 3 percent to a
maximum of 6 percent:
The original TDT may be levied at the rate of 1 or 2 percent.
4
An additional 1 percent tax may be levied by counties who have previously levied a TDT at
the 1 or 2 percent rate for at least three years.
5
A high tourism impact tax may be levied at an additional 1 percent.
6
A professional sports franchise facility tax may be levied up to an additional 1 percent.
7
An additional professional sports franchise facility tax no greater than 1 percent may be
imposed by a county that has already levied the professional sports franchise facility tax.
8
Prior to the authorization of the original 1 or 2 percent TDT, the levy must be approved by a
countywide referendum
9
and additional TDT levies must be authorized by a vote of the county’s
governing authority or by voter approval of a countywide referendum.
10
Areas of Critical State Concern; Tourist Impact Tax
Sections 380.0661-380.0685, F.S., authorize certain counties – specifically, counties in which
one or more designated areas of critical state concern
11
are located– to create land authorities by
ordinance
12
to “equitably deal with the challenges of implementing comprehensive land use
1
FLA. CONST. art. IV, s. 5(a). Sections 100.151, 100.342, 100.351, F.S.
2
Section 125.0104, F.S.
3
Section 125.0104(3)(a)(1), F.S. considers “transient rental” to be the rental or lease of any accommodation for a term of 6
months or less.
4
Section 125.0104(3)(c), F.S. Sixty-three counties levy this tax, all at a rate of 2 percent. Office of Economic &
Demographic Research (EDR), Local Option Tourist / Food & Beverage Tax Rates, available at
http://edr.state.fl.us/Content/local-government/data/county-municipal/ (last visited Jan. 25, 2020).
5
Section 125.0104(3)(d), F.S. Fifty-four of the eligible 59 counties levy this tax, with an estimated 2019-20 state fiscal year
collection of $169 million. Id at 263.
6
Section 125.0104(3)(m), F.S. Seven of the nine eligible counties levy this tax, with an estimated 2019-20 state fiscal year
collection of $106 million. Id at 269.
7
Section 125.0104(3)(l), F.S. Revenue can be used to pay debt service on bonds for the construction or renovation of
professional sports franchise facilities, spring training facilities or professional sports franchises, and convention centers and
to promote and advertise tourism. Forty-five of the 67 eligible counties levy this additional tax, with an estimated 2019-20
state fiscal year collection of $183 million. Id at 267.
8
Section 125.0104(3)(n) F.S. Thirty of the eligible 65 counties levy the additional professional sports franchise facility tax,
with an estimated 2019-20 state fiscal year collection of $147 million. Id at 273.
9
Section 125.0104(6), F.S.
10
Section 125.0104(3)(d), F.S.
11
The Areas of Critical State Concern Program, which was created by the Florida Environmental Land and Water
Management Act of 1972, is intended to “protect resources and public facilities of major statewide significance, within
designated geographic areas, from uncontrolled development that would cause substantial deterioration of such resources.”
Fla. Dep’t of Economic Opportunity, Areas of Critical State Concern Program, https://floridajobs.org/community-planning-
and-development/programs/community-planning-table-of-contents/areas-of-critical-state-concern (last visited Jan. 9, 2022).
12
Section 380.0663(1), F.S. BILL: SB 1194 Page 3
plans developed pursuant to the area of critical state concern program, which challenges are
often complicated by the environmental sensitivity of such areas.”
13
Any county creating a land authority may levy by ordinance, in the area or areas within said
county designated as an area of critical state concern, a tourist impact tax.
14
However, if the area
or areas of critical state concern are greater than 50 percent of the land area of the county, the tax
may be levied throughout the entire county.
15
The tax is not effective until land development
regulations and a local comprehensive plan that meet the requirements of ch. 380, F.S., have
become effective and the tax is approved by referendum.
16
The referendum must have approval
of a majority vote of qualified electors held by the governing board of the county in conjunction
with a general or special election.
17
The county is authorized to levy a 1 percent tax of each dollar on transient rental facilities within
the applicable area.
18
The funds are used to buy property in the area of critical state concern and
to offset the loss of ad valorem (property) taxes due to those land acquisitions.
19
Designated
areas of critical state concern include the Big Cypress Area (mainly in Collier County), the
Green Swamp Area in Central Florida, the Florida Keys Area in South Florida, and the
Apalachicola Bay Area in Franklin County.
20
Children’s Services Independent Special District Tax
In 1986, the Legislature authorized Florida counties to create children’s services councils as
countywide special districts to fund children’s services throughout the county.
21
The county
governing body must obtain approval, by a majority vote of those electors voting on the
question, to levy ad valorem taxes to fund children’s services. The levy may not exceed .5 mills
of assessed valuation of all properties within the county which are subject to ad valorem county
taxes.
22
Ten counties currently have children’s services councils organized as independent
special districts.
23
Children’s services councils may exercise the following powers and functions:
Provide preventive, developmental, treatment, rehabilitative, and other services for children;
Provide funds to other agencies that operate for the benefit of children, with the exception of
the public school system;
Collect data and conduct research to determine the needs of the children in the county;
Coordinate with providers of children’s services to prevent duplication of services; and
13
Section 380.0661(1), F.S.
14
Section 125.0108 (1)(a), F.S.
15
Id.
16
Id.
17
Section 125.0108 (5), F.S.
18
Section 125.0108(1)(c), F.S.
19
Florida Department of Revenue, Local Option Taxes, available at:
https://floridarevenue.com/taxes/taxesfees/pages/local_option.aspx (last visited Jan. 7, 2022)
20
Florida Department of Revenue, Local Option Taxes, available at:
https://floridarevenue.com/taxes/taxesfees/pages/local_option.aspx (last visited Jan. 7, 2022)
21 Chapter 86-197, L.O.F.; s. 125.901(1), F.S.
22
Section 125.901(3)(b), F.S.
23 Florida Department of Economic Opportunity, Division of Community Development, Official List of Special Districts
Online, available at: http://specialdistrictreports.floridajobs.org/webreports/sumfunctionlist.aspx (last visited Jan. 7, 2022) BILL: SB 1194 Page 4
Lease or buy necessary real estate, equipment and personal property.
24
County, Municipal, and School District Voted Millage
Local governments, including counties, school districts, and municipalities have the
constitutional authority to levy ad valorem taxes. Special districts may also be given this
authority by law.
25
Governing bodies of counties, municipalities and other taxing authorities are responsible for
determine the millage (tax) rate for the real property for which they are levying the tax.
26
The
millage rate is the amount of property tax charged per $1,000 of taxable property value.
27
County
and municipal millages are set forth in four categories:
General county and municipal nonvoted millage set by the governing body;
County and municipal debt service millage;
County and municipal voted millage;
County and municipal dependent special district millage.
28
Section 200.71 F.S., limits county ad valorem millage to 10 mills, except as approved by voters,
while s. 200.81 F.S., provides the same limitation for municipalities. County and municipal
millage may be increased for periods not exceeding 2 years, provided such levy has been
approved by majority vote of the qualified electors in the county or municipality voting in an
election called by the governing body for that purpose.
29
The referendum to levy voted millage
above 10 mills must specify the amount of millage sought to be levied and the purpose for which
the proceeds will be expended.
30
Section 1011.73 F.S., outlines school district millage election requirements, as needed to fund
education in a county as allowed under s. 9, Art. VII of the State Constitution. Funds from voted
millages may be temporary up to two years, or temporary up to four years, and are supplemental
to nonvoted millages levied by the school district. A district school board must direct the county
commissioners to call an election at which the voters in the school district approve an ad valorem
tax millage.
31
Such election may be held at any time, except that not more than one such election
shall be held during any 12-month period.
32
A district school board may propose an election for a
single millage or two millages, with one for operating expenses and another for a local capital
improvement reserve fund. When two millage figures are proposed, each millage must be voted
on separately.
33
24 Section 125.901(2), F.S.
25 Fla. Const. art VII, s. 9.
26
Section 200.065
27
Sumter County Florida, County Millage Rate Information, available at: https://www.sumtercountyfl.gov/865/County-
Millage-Rate-Information (last visited Jan. 7, 2021)
28
Section 200.001(1) and (2) F.S.
29
Sections 200.091 and 200.101 F.S.
30
Id.
31
Section 1011.73 (1) F.S.
32
Section 1011.73 (1)-(2), F.S.
33
Section 1011.73 (4) (a) F.S. BILL: SB 1194 Page 5
Charter County and Regional Transportation System Surtax
Each county that has adopted a charter, each county the government of which is consolidated
with that of one or more municipalities, and each county that is within or under an interlocal
agreement with a regional transportation or transit authority created under ch. 343 or ch. 349,
F.S., may levy a discretionary sales surtax of up to one percent
subject to approval by a majority
vote of the electorate of the county or by a charter amendment approved by a majority vote of the
electorate of the county.
34
The proposal to adopt this surtax must be approved in a referendum
held at a general election.
35
Twenty-three counties are currently eligible to levy this surtax. This includes Florida’s twenty
charter counties and those counties that are within or under an interlocal agreement with the
following regional transportation authorities .
South Florida Regional Transportation Authority;
Central Florida Regional Transportation Authority;
Tampa Bay Area Regional Transit Authority;
Jacksonville Transportation Authority.
Generally, the surtax proceeds are used by the county for, or remitted to the county’s governing
body to an expressway or transportation authority, for the development, construction, operation,
and maintenance of fixed guideway rapid transit systems; bus systems; on-demand transportation
services; and roads and bridges.
36
Additionally, up to 25 percent of the proceeds may be used for
nontransit purposes.
37
Local Option Fuel Taxes
Counties may levy a “ninth-cent fuel tax” (1 cent on every net gallon of motor and diesel fuel
sold within a county) if approved by extraordinary vote of its governing board or by voter
referendum.
38
Counties also may levy other local option fuel taxes which include a tax of 1 to 6 cents on every
net gallon of motor and diesel fuel sold within a county, and a tax of 1 to 5 cents on every net
gallon of motor fuel (excluding diesel) sold within a county. Both of these taxes may be levied
by an ordinance adopted by a majority plus one vote of the membership of the governing body of
the county or by referendum.
39
All impositions of the ninth-cent fuel tax or the local option fuel tax must be levied before
October 1 of each year to be effective January 1 of the following year. The Department of
Revenue administers, collects, and enforces local option fuel taxes. The funds are used for
transportation expenditures.
40
34
Section 212.055(1), F.S.
35
Section 212.055(1)(c)1., F.S.
36
Section 212.055(1)(d), F.S.
37
Section 212.055(1)(d)3., F.S.
38
Section 336.021(1)(a), F.S.
39
Section 336.025, F.S.
40
Florida Department of Revenue, Local Option Taxes, available at:
https://floridarevenue.com/taxes/taxesfees/pages/local_option.aspx (last visited Jan. 7 2022) BILL: SB 1194 Page 6
General Elections
Section 97.021, F.S., defines a general election as an election held on the first Tuesday after the
first Monday in November in the even-numbered years, for the purpose of filling national, state,
county, and district offices and for voting on constitutional amendments not otherwise provided
for by law.
III. Effect of Proposed Changes:
Section 1 amends s. 125.0104 F.S., to require that a referendum relating to local tourist
development taxes be held at a general election, as defined in s. 97.021, F.S.
Section 2 amends s. 125.0108 F.S., to require a referendum to levy the tourist impact tax in an
area of critical state concern be held at a general election, as defined in s. 97.021 F.S.
Section 3 amends s. 125.901 F.S., requiring a county to gain approval to levy ad valorem taxes
for a children’s services independent special district at a general election, as defined in s. 97.021
F.S.
Section 4 amends s. 200.091, F.S., relating to county voted millage increases, requiring a
referendum be held at a general election, as defined in s. 97.021 F.S..
Section 5 amends s. 200.101, F.S., relating to municipal voted millage increases, requiring a
referendum be held at a general election, as defined in s. 97.021 F.S..
Section 6 amends s. 255.0992, F.S., to make a conforming change to a reference to the Charter
County and Regional Transportation System Sales Surtax to reflect that such surcharge is levied
by referenda at a general election, as is required by current law in s. 212.055, F.S.
Section 7 amends s. 336. 021, F.S., requiring the referendum to levy the ninth-cent fuel tax on
motor fuel and diesel fuel be held at a general election, as defined in s. 97.021 F.S..
Section 8 amends s. 336.025, F.S., relating to local option fuel taxes to require a referendum be
held at a general election, as defined in s. 97.021 F.S..
Section 9 amends s. 1011.73, F.S., relating to school district millage elections to require a
referendum be held at a general election, as defined in s. 97.021.
Section 10 provides an effective date of July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None. BILL: SB 1194 Page 7
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The timing of certain tax increases may change due to the requirement that elections be
held at the general election.
B. Private Sector Impact:
None.
C. Government Sector Impact:
By moving certain local referenda to the general election ballot, there may be efficiency
realized in the election processes of local governments.
VI. Technical Deficiencies:
None.
VII. Related Issues:
Section 6 amends s. 255.0992, F.S., in a manner that appears to conform language relating to a
referendum to approve Charter County and Regional Transportation System Sales Surtaxes to a
2019 law requiring that such referenda be held at general elections. The amendment does not
appear to be necessary to effect the change in election dates but may inadvertently impact
existing contracts or bond indebtedness.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 125.0104,
125.0108, 125.901, 200.091, 200.101, 255.0992, 336.021, 336.025, and 1011.73 BILL: SB 1194 Page 8
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.