This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0731.LFS
DATE: 3/16/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 731 Local Tax Referenda Requirements
SPONSOR(S): Temple
TIED BILLS: IDEN./SIM. BILLS: SB 698
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration, Federal Affairs & Special
Districts Subcommittee
Roy Darden
2) Ways & Means Committee
3) State Affairs Committee
SUMMARY ANALYSIS
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, a number of such taxes may be approved in special
elections. The referenda approving such 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 requires referenda authorizing certain optional local taxes to be held at a general election preceding
the expiration of the tax. 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;
Discretionary sales surtax;
County transportation motor fuel tax;
Local option fuel tax; and
School district millage.
The bill does not appear to have a fiscal impact on the state, but may have a fiscal impact on local
governments. STORAGE NAME: h0731.LFS PAGE: 2
DATE: 3/16/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
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, a number of such taxes may be approved in
special elections. The referenda approving such 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.
1
Tourist Development Tax
2
A tourist development tax is a county tax on consideration paid on residential rentals of six months or
less. The tax funds tourism-related uses specified in the authorizing statute. The initiation of the tax
must be approved by a referendum of voters living in the jurisdiction in which the tax is imposed. The
original tax may be repealed by a referendum initiated by a petition signed by 15 percent of voters
subject to the interest of the holders of any revenue bonds repayment of which is secured by the tax.
3
Once the tax is in place, additional taxes
4
may be levied by a vote of the county commissioners.
Areas of Critical State Concern Tourist Impact Tax
5
An area of critical state concern tourist impact tax is a tax on the consideration paid on residential
rentals of six months or less imposed by a county creating a land authority pursuant to the state laws
regulating land use planning in areas of critical state concern.
6
The tax is distributed to the land
authority for use in the area of critical state concern pursuant to the land authority’s responsibilities
7
and
to the governing body of the county to offset ad valorem taxes lost due to public acquisitions provided
for in the act establishing the areas of critical state concern.
8
The tax may not take effect until approval
of a referenda by a majority of the voters residing in the affected jurisdiction. The referendum must be
held in conjunction with a general or special election.
9
Children’s Services Independent Special District Tax
The children’s services independent special district tax is an ad valorem tax not to exceed 0.5 mills of
assessed valuation of all property subject to county ad valorem taxes, assessed in a county having an
independent special district to fund children’s services in the county. The ad valorem tax must be
approved initially by a majority vote of county voters.
10
Temporary Excess Ad Valorem Millage
1
Art. IV, s. 5(a) Fl. Const. and Ss. 100.151, 100.342, 100.351, F.S.
2
S. 125.0104, F.S.
3
S. 125.0104(6)(d), F.S.
4
S. 125.0104(3)(l), (m), and (n), F.S. Two of the three additional taxes require extraordinary votes for enactment.
5
S. 125.0108, F.S.
6
Ss. 380.05 to 380.0685, F.S.
7
S. 380.0666, F.S.
8
Ch. 86-170, Laws of Fla.
9
S. 125.0108(5), F.S.
10
S. 125.901(1), F.S. (The revenues collected fund the services authorized in s. 125.901, F.S.) STORAGE NAME: h0731.LFS PAGE: 3
DATE: 3/16/2023
A temporary excess ad valorem millage is a tax in excess of the 10-mill limit,
11
imposed for a period not
to exceed two years in a county, dependent special district, or municipality. The levy must be approved
by a majority vote of the county, district, or municipal voters.
12
Discretionary Sales Surtaxes
Counties have been granted limited authority to levy a discretionary sales surtaxes for specific
purposes on transactions subject to state sales tax.
13
These purposes include:
Operating a transportation system in a charter county;
14
Financing local government infrastructure projects;
15
Providing additional revenue for counties having less than 50,000 residents as of April 1,
1992;
16
Providing medical care for indigent persons;
17
Funding trauma centers;
18
Operating, maintaining, and administering a county public general hospital;
19
Constructing and renovating schools;
20
Providing emergency fire rescue services and facilities; and
21
Funding pension liability shortfalls.
22
A referendum to adopt or amend a discretionary sales surtax must be held at a general election.
23
Current law does not specify when a referendum to extend an existing discretionary sales surtax at the
same rate must occur.
County Transportation Motor Fuel Tax
24
The county transportation motor fuel tax is a local option, 1 cent per gallon fuel tax for specified
transportation expenditures.
25
The tax is identified as “the ninth cent fuel tax”
26
and may be levied by
any county by extraordinary vote of the membership of the governing body or subject to a
referendum.
27
Local Option Fuel Taxes
28
With regard to local option fuel taxes, two different taxes
29
may be levied, each up to 6 cents per gallon
on motor fuels. These taxes may be levied by ordinance adopted by a majority plus one vote of the
membership of the governing body of the county or by referendum.
30
11
Ss. 200.071 and 200.081, F.S.
12
Ss. 200.091 and 200.101, F.S.
13
Ss. 212.054, 212.055, F.S.
14
S. 212.055(1), F.S.
15
S. 212.055(2), F.S.
16
S. 212.055(3), F.S. Note that the small county surtax may be levied by extraordinary vote of the county governing board
if the proceeds are to be expended only for operating purposes.
17
S. 212.055(4)(a), F.S. (for counties with more than 800,000 residents); s. 212.055(7), F.S. (for counties with less than
800,000 residents).
18
S. 212.055(4)(b), F.S.
19
S. 212.055(5), F.S.
20
S. 212.055(6), F.S.
21
S. 212.055(8), F.S.
22
S. 212.055(9), F.S.
23
S. 212.055(10), F.S.
24
Ss. 206.41(1)(d), 206.87(1)(b), and 336.021, F.S.
25
Ss. 336.021(1)(a) and 336.025(7), F.S.
26
S. 336.021(2)(a), F.S.
27
S. 336.021(1)(a), F.S.
28
S. 336.025, F.S.
29
S. 336.025(1)(a) and (b), F.S.
30
S. 336.025(1)(b) and (3)(a), F.S. STORAGE NAME: h0731.LFS PAGE: 4
DATE: 3/16/2023
School District Millage
31
School district millage is ad valorem tax levied for specified periods including millage supplementing the
minimal local taxes required by the education code. One tax may be used for school operational
purposes
32
or the other for any lawful school district purpose.
33
Effects of Proposed Changes
Tourist Tax / Children’s Services Independent Special District Tax
The bill adds a provision to require a referendum to reenact an expiring tourist development, a tourist
impact, and a Children’s Services Independent Special District Tax to be held at the general election
immediately preceding the expiration date of the tax.
Temporary Excess Ad Valorem Millage
The bill adds that a referendum to increase the millage to be levied for county purposes, including
dependent districts, may be increased for periods not exceeding two years, providing such a levy has
been approved by a majority vote in the general election immediately preceding the effect date of the
increased and called for such purpose.
Discretionary Sales Surtaxes/ County Transportation Motor Fuel Tax
The bill adds a provision for a referendum to reenact an expiring local government discretionary sales
surtax and an expiring tax on motor and diesel fuel which must be held at the general election
immediately preceding the expiration date of the surtax.
School District Millage
The bill removes the provision that an election to approve an ad valorem tax millage for district school
boards may not be held if one such election was held within the same 12-month period. The bill also
requires the election to approve the ad valorem tax must be held immediately preceding the effect date
of the millage.
B. SECTION DIRECTORY:
Section 1: Amends 125.0104, F.S, relating to tourist development tax.
Section 2: Amends 125.0108, F.S, relating to tourist impact tax in areas of critical state concern.
Section 3: Amends 125.901, F.S, relating to children’s services.
Section 4: Amends 200.091, F.S, relating to referendums to increase millage for county purposes.
Section 5: Amends 200.101, F.S, relating to referendums for millage in excess of limits.
Section 6: Amends 212.055, F.S, relating to discretionary sales surtaxes.
Section 7: Amends 336.021, F.S, relating to nine-cent fuel tax on motor and diesel fuel.
Section 8: Amends 336.025, F.S, relating to local option fuel tax on motor and diesel fuel.
Section 9: Amends 1011.73, F.S, relating to school district millage elections.
31
S. 1011.73, F.S.
32
Ss. 1011.71(9) and 1011.73(2), F.S.
33
S. 9(a), Art. VII, Fl. Const. S. 1011.73(1), F.S. STORAGE NAME: h0731.LFS PAGE: 5
DATE: 3/16/2023
Section 10: Provides an effective date of July 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may reduce local government expenditures to the extent elections that previously would
have been scheduled for a special election would be held during a general election.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither provides authority for nor requires rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
STORAGE NAME: h0731.LFS PAGE: 6
DATE: 3/16/2023
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES