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 698
INTRODUCER: Senator Ingoglia
SUBJECT: Local Tax Referenda Requirements
DATE: March 27, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Pre-meeting
2. FT
3. FP
I. Summary:
SB 689 requires that a referendum to reenact the following temporary taxes when expiring be
held at the general election immediately preceding expiration:
Tourist development taxes;
Tourist impact taxes;
Local government discretionary sales surtaxes;
Ninth-cent fuel taxes; and
Local option fuel taxes.
The bill similarly requires that certain other referendums be held in the general election
immediately preceding the effective date of a millage increase. This includes referendums
authorizing:
An increase in millage levied by a children’s services independent special district;
A county or municipality to temporarily levy millage in excess of statutory limits; and
A school district to temporarily levy millage.
The bill will take effect July 1, 2023.
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 referendums approving
the local taxes contemplated by the bill are held at any general election, except those approving
REVISED: BILL: SB 698 Page 2
school district millage, which may be held at any time.
1
Current law is silent on the timing of
referendums to reauthorize existing taxes, and permits referendums to occur at any general
election. 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.
4,5
An additional 1 percent tax may be levied by counties that have previously levied a TDT at
the 1 or 2 percent rate for at least three years.
6
A high tourism impact tax may be levied at an additional 1 percent.
7
A professional sports franchise facility tax may be levied up to an additional 1 percent.
8
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.
9
Prior to the authorization of the original 1 or 2 percent TDT, the levy must be approved by a
countywide referendum,
10
and additional TDT levies must be authorized by a vote of the
county’s governing authority or by voter approval of a countywide referendum.
11
1
Sections 125.0104(6)(a), 125.0108(5), 125.901(1), 200.091, 200.101, 212.055(10), 336.021(4)(a)2., 336.021(1)(b), and
1011.73, 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-two counties levy the original tourist development tax, all at a rate of 2 percent. Office of
Economic & Demographic Research (EDR), Office of Economic & Demographic Research (EDR), 2022 Local Financial
Information Handbook at 247-48, available at http://edr.state.fl.us/Content/local-government/reports/lgfih22.pdf (last visited
Mar. 27, 2023).
5
During Fiscal Year 2022-23, the 62 counties currently levying this tax will realize an estimated $612 million in revenue. Id.
at 251.
6
Section 125.0104(3)(d), F.S. Fifty-six of the eligible 59 counties levy this tax, with an estimated 2022-23 state fiscal year
collection of $250 million. Supra n. 4 at 255.
7
Section 125.0104(3)(m), F.S. Nine eligible counties levy this tax, with an estimated 2022-23 state fiscal year collection of
$162 million. Supra n. 4 at 261.
8
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 2021-22
state fiscal year collection of $285 million. Supra n. 4 at 259.
9
Section 125.0104(3)(n) F.S. Thirty-one of the eligible 65 counties levy the additional professional sports franchise facility
tax, with an estimated 2021-22 state fiscal year collection of $150 million. Id at 269.
10
Section 125.0104(6), F.S.
11
Section 125.0104(3)(d), F.S. BILL: SB 698 Page 3
Tourist Impact Tax; Areas of Critical State Concern
Counties containing a designated area of critical state concern
12
are authorized to create land
authorities by ordinance
13
to “equitably deal with the challenges of implementing comprehensive
land use plans developed pursuant to the area of critical state concern program, which challenges
are often complicated by the environmental sensitivity of such areas.”
14
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.
15
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.
16
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.
17
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.
18
The county is authorized to levy a 1 percent tax on each dollar on transient rental facilities within
the applicable area.
19
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.
20
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.
21
Property Tax; Children’s Services Independent Special District
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.
22
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.
23
12
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.”
Florida Department 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 Mar.
27, 2023).
13
Section 380.0663(1), F.S.
14
Section 380.0661(1), F.S.
15
Section 125.0108(1)(a), F.S.
16
Id.
17
Id.
18
Section 125.0108(5), F.S.
19
Section 125.0108(1)(d), F.S.
20
Supra n. 4 at 267-68.
21
Id.
22
Chapter 86-197, Laws of Fla.; s. 125.901(1), F.S.
23
Section 125.901(3)(b), F.S. BILL: SB 698 Page 4
Ten counties currently have children’s services councils organized as independent special
districts.
24
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;
Lease or buy necessary real estate, equipment, and personal property; and
Employ and provide benefits for needed personnel.
25
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.
26
Governing bodies of counties, municipalities, and other taxing authorities are responsible for
determining the millage (tax) rate for the real property for which they are levying the tax.
27
The millage rate is the amount of property tax charged per $1,000 of taxable property
value. County and municipal millages are set forth in four categories:
General county and municipal nonvoted millage set by the respective governing body;
County and municipal debt service millage;
County and municipal voted millage set by the respective governing body as authorized by a
vote of the electors; and
County and municipal dependent special district millage.
28
County and municipality ad valorem millage is limited to 10 mills, except as approved by
voters.
29
County and municipal millage may be increased in excess of 10 mills 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 a general election called by the governing body
for that purpose.
30
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.
31
24
Florida Department of Economic Opportunity, Division of Community Development, Official List of Special Districts
Online, available at https://www.floridajobs.org/community-planning-and-development/special-districts/special-district-
accountability-program/official-list-of-special-districts, Special Purpose Totals and Statutory Authority (PDF) (last visited
Mar. 27, 2023).
25
Section 125.901(2), F.S.
26
FLA. CONST. art VII, s. 9.
27
Section 200.065, F.S.
28
Section 200.001(1) and (2), F.S.
29
Sections 200.071 and 200.081, F.S.
30
Sections 200.091 and 200.101, F.S.
31
Id. BILL: SB 698 Page 5
General law provides specific requirements on school district millage elections, as needed to
fund education in a county as allowed under Art. VII, s. 9 of the State Constitution.
32
These taxes
are temporarily authorized for either two or four years, and are supplemental to nonvoted
millages levied by the school district, which are set at the minimum millage rate necessary to
provide for the school district.
33
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.
34
Such election may be held at any time, except that not more than one such election shall be held
during any 12-month period.
35
A district school board may propose an election for a single
millage or two separate 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.
36
Discretionary Sales Surtax
Counties are authorized to levy a discretionary sales surtax on transactions subject to state sales
tax for specific purposes.
37
These purposes include:
Operating a regional transportation system;
Financing local government infrastructure projects;
Providing additional revenue for small counties;
Providing medical care for indigent persons;
Funding trauma centers;
Operating, maintaining, and administering a county public general hospital;
Constructing and renovating schools;
Providing emergency fire rescue services and facilities; and
Funding pension liability shortfalls.
38
A referendum to adopt or amend a discretionary sales surtax must be held at a general election.
39
Current law does not specify when a referendum to reauthorize an existing sales surtax must
occur.
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.
40
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
32
Section 1011.71, F.S.
33
Id.
34
Section 1011.73(1)-(2), F.S.
35
Id.
36
Section 1011.73(4)(a), F.S.
37
Section 212.054, F.S.
38
Section 212.055(1)-(9), F.S.
39
Section 212.055(10), F.S.
40
Section 336.021(1)(a), F.S. BILL: SB 698 Page 6
gallon of motor fuel (excluding diesel) sold within a county.
41
The latter tax on motor fuel 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.
42
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.
43
The Department of
Revenue administers, collects, enforces, and distributes local option fuel taxes. The funds are
used for transportation expenditures.
44
General Elections
A general election is 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.
45
III. Effect of Proposed Changes:
The bill provides, for various taxes, that a referendum to reenact an expiring temporary tax must
be held at the general election immediately preceding the expiration date of the tax. Current law
permits such a referendum at any general election. The bill applies this to:
Tourist development taxes (section 1, amending s. 125.0104, F.S.);
Tourist impact taxes (section 2, amending s. 125.0108, F.S.);
Local government discretionary sales surtaxes (section 6, amending 212.055, F.S.);
Ninth-cent fuel taxes (section 7, amending s. 336.021, F.S.); and
Local option fuel taxes (section 8, amending s. 336.025, F.S.).
The bill similarly requires that other specified referendums be held in the general election
immediately preceding the effective date of a millage increase. This applies to those
referendums:
Permitting an increase in millage levied by a children’s services independent special district
(Section 3, amending s. 125.901, F.S);
Permitting a county (section 4, amending s. 200.091, F.S.) or municipality (section 5,
amending s. 200.101, F.S.) to temporarily levy millage in excess of statutory limits; and
Permitting a school district to temporarily levy millage (section 9, amending s. 1011.73,
F.S.).
The bill will take effect July 1, 2023.
41
Section 336.025, F.S.
42
Section 336.025(1)(b), F.S.
43
Section 336.025(1)(a)-(b), F.S.
44
Supra, n. 4 at 217-18.
45
Section 97.021(17), F.S. BILL: SB 698 Page 7
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Not applicable. The bill does not require counties or municipalities to take action
requiring the expenditure of funds, reduce the authority that counties or municipalities
have to raise revenue in the aggregate, nor reduce the percentage of state tax shared with
counties or municipalities.
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:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None. BILL: SB 698 Page 8
VIII. Statutes Affected:
This bill substantially amends sections 125.0104, 125.0108, 125.901, 200.091, 200.101, 212.055,
336.021, 336.025, and 1011.73 of the Florida Statutes.
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.