This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0731e.SAC
DATE: 4/11/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 731 Local Tax Referenda Requirements
SPONSOR(S): Local Administration, Federal Affairs & Special Districts Subcommittee, Temple
TIED BILLS: IDEN./SIM. BILLS: CS/SB 698
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration, Federal Affairs & Special
Districts Subcommittee
12 Y, 4 N, As CS Roy Darden
2) Ways & Means Committee 14 Y, 7 N LaTorre Aldridge
3) State Affairs Committee 14 Y, 5 N Roy Williamson
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 held at a general election, with the exception of those approving
school district millage which may be held at any time.
The bill provides that a referendum to reenact an expiring tax must be held at a general election, and may be
held only once during the 48-month period preceding the effective date of the referendum, for the following
affected taxes:
Tourist development tax.
Areas of critical state concern tourist impact tax.
Discretionary sales surtaxes.
The bill provides that a referendum to adopt, amend, or reenact an expiring tax must be held at a general
election, and only once during the 48-month period preceding the effective date of the referendum, for the
following taxes:
County transportation motor fuel tax.
Local option fuel taxes.
The bill also requires that a referendum be held at a general election, and only once during the 48-month
period preceding the effective date of the referendum, in the following instances:
To permit an increase in millage for a children’s services independent special district tax.
To temporarily levy a millage in excess of the statutory limits.
To levy a school district millage.
The bill also 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 does not appear to have a fiscal impact on state or local governments.
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DATE: 4/11/2023
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 held at a general election, with the exception of those
approving school district millage which may be held at any time.
Tourist Development Tax
1
A tourist development tax is a county tax on consideration paid on residential rentals of six months or
less.
2
The tax funds tourism-related uses specified in the authorizing statute. The ordinance levying
and imposing the tax must be approved in a referendum held at a general election by a majority of the
electors voting in such election in the county or by a majority of the electors voting in the subcounty
special tax district affected by the tax.
3
Areas of Critical State Concern Tourist Impact Tax
4
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.
5
The tax is distributed to the land
authority for use in the area of critical state concern pursuant to the land authority’s responsibilities
6
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.
7
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 election
8
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 in a general election.
9
Temporary Excess Ad Valorem Millage
A temporary excess ad valorem millage is a tax in excess of the 10-mill limit,
10
imposed for a period not
to exceed two years in a county, dependent special district, or municipality. The levy must be approved
in a general election by a majority vote of the county, district, or municipal voters.
11
1
S. 125.0104, F.S.
2
S. 125.0104(3)(a), F.S.
3
S. 125.0104(6)(a), F.S.
4
S. 125.0108, F.S.
5
Ss. 125.0108(b)(1) and 380.05 to 380.0685, F.S.
6
S. 380.0666, F.S.
7
Ch. 86-170, Laws of Fla.
8
S. 125.0108(5), F.S.
9
S. 125.901(1), F.S. (The revenues collected fund the services authorized in s. 125.901, F.S.)
10
Ss. 200.071 and 200.081, F.S.
11
Ss. 200.091 and 200.101, F.S. STORAGE NAME: h0731e.SAC PAGE: 3
DATE: 4/11/2023
Discretionary Sales Surtaxes
Counties have limited authority to levy a discretionary sales surtaxes for specific purposes on
transactions subject to state sales tax.
12
These purposes include:
Operating a transportation system in a charter county;
13
Financing local government infrastructure projects;
14
Providing additional revenue for counties having less than 50,000 residents as of April 1,
1992;
15
Providing medical care for indigent persons;
16
Funding trauma centers;
17
Operating, maintaining, and administering a county public general hospital;
18
Constructing and renovating schools;
19
Providing emergency fire rescue services and facilities; and
20
Funding pension liability shortfalls.
21
A referendum to adopt or amend a discretionary sales surtax must be held at a general election.
22
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
The county transportation motor fuel tax is a local option, 1 cent per gallon fuel tax for specified
transportation expenditures.
23
The tax is identified as “the ninth cent fuel tax”
24
and may be levied by
any county by extraordinary vote of the membership of the governing body or subject to a referendum
held at a general election.
25
Local Option Fuel Taxes
26
With regard to local option fuel taxes, two different taxes
27
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 held at a general election.
28
School District Millage
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
29
or the other for any lawful school district purpose.
30
A school district can levy school district
12
Ss. 212.054 and 212.055, F.S.
13
S. 212.055(1), F.S.
14
S. 212.055(2), F.S.
15
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.
16
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).
17
S. 212.055(4)(b), F.S.
18
S. 212.055(5), F.S.
19
S. 212.055(6), F.S.
20
S. 212.055(8), F.S.
21
S. 212.055(9), F.S.
22
S. 212.055(10), F.S.
23
Ss. 336.021(1)(a) and 336.025(7), F.S.
24
S. 336.021(2)(a), F.S.
25
S. 336.021(4)(a)2, F.S.
26
S. 336.025, F.S.
27
S. 336.025(1)(a) and (b), F.S.
28
S. 336.025(1)(b) and (3)(a), F.S.
29
S. 1011.71(9), F.S.
30
S. 1011.73, F.S. STORAGE NAME: h0731e.SAC PAGE: 4
DATE: 4/11/2023
millage for school operational purposes by referendum held at a general or special election, but an
additional millage levied for other lawful school district purposes must be held at a general election.
31
Effects of Proposed Changes
The bill provides that a referendum to reenact an expiring tax must be held at a general election, and
only once during the 48-month period preceding the effective date of the referendum, for the following
taxes:
Tourist development tax.
Areas of critical state concern tourist impact tax.
Discretionary sales surtaxes.
The bill provides that a referendum to adopt, amend, or reenact an expiring tax must be held at a
general election, and only once during the 48-month period preceding the effective date of the
referendum, for the following taxes:
County transportation motor fuel tax.
Local option fuel taxes.
The bill also requires that a referendum be held at a general election, and only once during the 48-
month period preceding the effective date of the referendum, in the following instances:
To permit an increase in millage for a children’s services independent special district tax.
To temporarily levy a millage in excess of the statutory limits.
To levy a school district millage.
The bill removes the provision providing 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.
B. SECTION DIRECTORY:
Section 1: Amends s. 125.0104, F.S., relating to tourist development tax.
Section 2: Amends s. 125.0108, F.S., relating to tourist impact tax in areas of critical state concern.
Section 3: Amends s. 125.901, F.S., relating to children’s services.
Section 4: Amends s. 200.091, F.S., relating to referendums to increase millage for county
purposes.
Section 5: Amends s. 200.101, F.S., relating to referendums for millage in excess of limits.
Section 6: Amends s. 212.055, F.S., relating to discretionary sales surtaxes.
Section 7: Amends s. 336.021, F.S., relating to nine-cent fuel tax on motor and diesel fuel.
Section 8: Amends s. 336.025, F.S., relating to local option fuel tax on motor and diesel fuel.
Section 9: Amends s. 1011.73, F.S., relating to school district millage elections.
Section 10: Provides an effective date of July 1, 2023.
31
Ss. 1011.71(9) and 1011.73(3), F.S. STORAGE NAME: h0731e.SAC PAGE: 5
DATE: 4/11/2023
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:
None.
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. While the bill limits the flexibility that counties and municipalities have for scheduling a
referendum, this does not appear to “reduce the authority” they have to raise revenues. In addition,
the provisions of the bill related to the scheduling of referenda appear to be “election laws,” which
are exempt from the mandate provisions of s. 18, Art. VII, Fl. Const.
32
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On March 20, 2023, the Local Administration, Federal Affairs & Special Districts Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The amendment provided that a
32
Art. VII, s. 18(d) Fla. Const. STORAGE NAME: h0731e.SAC PAGE: 6
DATE: 4/11/2023
referendum may only be held once during the 48-month period preceding the effective date of the
referendum.
The analysis is drafted to the committee substitute adopted by the Local Administration, Federal Affairs &
Special Districts Subcommittee.