STORAGE NAME: h1221b.IAS
DATE: 4/9/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1221
TITLE: Local Option Taxes
SPONSOR(S): Miller
COMPANION BILL: CS/SB 1664 (Trumbull)
LINKED BILLS: None
RELATED BILLS: None
Committee References
Ways & Means
13 Y, 4 N, As CS
Intergovernmental Affairs
10 Y, 7 N
State Affairs
SUMMARY
Effect of the Bill:
The bill requires that any local discretionary sales surtax, tourist development tax, or local option food and
beverage tax which is subject to approval in a referendum and is in effect on June 30, 2025, be renewed on or
before January 1, 2033. The bill provides an exception for taxes pledged for debt service before July 1, 2025 on
bonds that mature on or after January 1, 2033, requiring those taxes to be renewed before January 1 of the year
after the bonds mature.
The bill generally creates a new 8-year duration for these taxes, but allows future levies to be pledged for debt
service are subject to a maximum 30-year duration. These changes do not revise which taxes are subject to
referendum, and do not apply to the Pension Liability Surtax in s. 212.055(9), F.S.
Fiscal or Economic Impact:
The Revenue Estimating Conference estimates that the provisions of the bill will not impact state or local
government revenues.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill requires that any local discretionary sales surtax (Section 3), tourist development tax (Section 1), or local
option food and beverage tax (Section 2) in effect on June 30, 2025 and for which a referendum is currently
required to enact the tax, the local government levying the tax must conduct a referendum to reauthorize the tax
on or before January 1, 2033 If a referendum is not held on or before that date, the surtax will no longer be in effect
beginning January 1, 2033, unless such levies are pledged for debt service. Any levy pledged for debt service may
continue until the debt is retired, and the levy will be subject to reauthorization requirement on the January 1st
following the retirement of the debt.
The bill also establishes an eight-year maximum time limit for all new levies of discretionary sales and tourist
development taxes that are subject to approval by referendum, except for the 0.25 percent trauma center
discretionary sales surtax that may be levied for counties with a population of fewer than 800,000 residents.
1 The
bill retains the existing four-year limitation for that surtax. (Section 3)
The bill provides an exception to the eight-year limitation for new levies used to service bond indebtedness Instead
of an eight-year limitation, the bill allows for a levy for no more than 30 years if:
The ordinance or resolution levying the tax specifies that the proceeds will be used for the purpose of
servicing bond indebtedness, and provides specific information on what the debt will be used for and the
duration of the indebtedness; and
1
S. 212.055(4)(b)4., F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
The ballot voted on in the referendum specifies that the proceeds will be used to service bond indebtedness
and includes a brief and general description of what the debt will be used for and the maximum duration of
the levy. (Sections 1 and 3)
The bill also provides a similar eight-year limitation for the imposition of the local option food and beverage tax
under s. 212.0306, F.S. in those cities in Miami-Dade County which currently levy the municipal resort tax pursuant
to Ch. 67-930, L.O.F. (Section 2)
None of these changes affect the pension liability surtax found in s. 212.055(9), F.S. (Section 3)
The bill takes effect July 1, 2025. (Section 4)
FISCAL OR ECONOMIC IMPACT:
LOCAL GOVERNMENT:
The Revenue Estimate Conference estimates the provisions of the bill will not impact on local government revenue.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Local Discretionary Sales Surtaxes
Counties have been granted limited authority to levy discretionary sales surtaxes for specific purposes on all
transactions occurring in the county subject to the state sales tax in ch. 212, F.S., and on communications services
as defined in ch. 202, F.S.
3 A discretionary sales surtax is based on the rate in the county where the taxable goods
or services are sold, or delivered into, and is levied in addition to the state sales and use tax of 6 percent. The
surtax does not apply to the sales price above $5,000 on any item of tangible personal property.
Approved purposes for levying a surtax include:
Operating a regional transportation system in a charter county;
4
Financing local government infrastructure projects;
5
Providing additional revenue for specified small counties;
6
Providing medical care for indigent persons;
7
Funding trauma centers;
8
Operating, maintaining, and administering a county public general hospital;
9
Constructing and renovating schools;
10
Providing emergency fire rescue services and facilities;
11 and
Funding pension liability shortfalls.
12
2
Revenue Estimating Conference, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2025/_pdf/page161-
164.pdf (last visited Apr. 7, 2025)
3
The tax rates, duration of the surtax, method of imposition, and proceed uses are individually specified in s. 212.055, F.S.
General limitations, administration, and collection procedures are set forth in s. 212.054, F.S.
4
S. 212.055(1), F.S.
5
S. 212.055(2), F.S.
6
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.
7
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).
8
S. 212.055(4)(b), F.S.
9
S. 212.055(5), F.S.
10
S. 212.055(6), F.S.
11
S. 212.055(8), F.S.
12
S. 212.055(9), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Current rates range from 0.5 percent to 2.0 percent in each of the 65 counties currently levying one or more
surtaxes.
13 Many of the taxes have restrictions on what combination of taxes can be levied by a single county at one
time.
14
Fiscal Year 2023-24 levies for these taxes were as follows:
Surtax Statute
Counties Levying/
Can Levy
15
2023-24 Statewide
Revenue
16
Charter County Regional
Transportation
s. 212.055(1), F.S. 3/23 $1.07 Billion
Local Gov’t Infrastructure s. 212.055(2), F.S. 26/67 $2.32 Billion
Small County s. 212.055(3), F.S. 30/31 $211 Million
Indigent Care (divided by
population)
s. 212.055(4)(a), F.S. and
212.055(7), F.S.
1/8 (greater than 800k);
5/58 (fewer than 800k)
$195 Million;
$88 Million
Trauma Center s. 212.055(4)(b), F.S. 0/58 $195 Million
County General Hospital s. 212.055(5), F.S. 1/1 $403 Million
School Construction s. 212.055(6), F.S. 30/67 $1.56 Billion
Emergency Fire Rescue Services s. 212.055(8), F.S. 1/65 $311, 042
Pension Liability s. 212.055(9), F.S. 0/26
17 $-
Most local discretionary sales surtaxes may only be approved by referendum, while some may be approved by a
vote of the county commission.
18 Some of the surtaxes have set periods of time that they can be enacted for before
requiring reenactment, others have no such specified time limit. The Charter County and Regional Transportation
System Surtax in s. 212.055(1), F.S., for example, is currently limited to 30 years if adopted on or after July 1, 2020.
Tourist Development Taxes
The Local Option Tourist Development Act
19 authorizes counties to levy five separate taxes on transient rental
20
transactions (tourist development taxes or TDTs) for specified purposes, all of which are generally related to the
tourism industry.
Depending on a county’s eligibility to levy such taxes, the maximum potential tax rate varies:
The original TDT may be levied at the rate of 1 or 2 percent.
21
An additional 1 percent tax may be levied by counties who have previously levied the original TDT at the 1
or 2 percent rate for at least three years.
22
A high tourism impact tax may be levied at an additional 1 percent.
23
13
Dept. of Revenue, Discretionary Sales Surtax Information for Calendar Year 2025, Form DR-15DSS, available at
https://floridarevenue.com/Forms_library/current/dr15dss.pdf (last visited March 9, 2025).
14
See, e.g., ss. 212.055(4)(a)6., F.S., 212.055(5)(f), F.S., and 212.055(9)(g), F.S.
15
See EDR, 2024 Local Discretionary Sales Surtax Rates in Florida's Counties, https://edr.state.fl.us/Content/local-
government/data/county-municipal/2024LDSSrates.pdf (last visited Apr 7, 2025).
16
Revenue Estimates taken from the Legislative Office of Economic and Demographic (EDR), 2023 Local Government Financial
Information Handbook, pp. 169-199, available at https://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf (last
visited March 16, 2025).
17
The Pension Liability Surtax has been approved in a referendum to take effect in Duval County no later than January 1, 2031,
but is not currently levied. See Duval County Ordinance 2017-257-E, available at
https://library.municode.com/FL/Jacksonville/ordinances/code_of_ordinances?nodeId=826832 (last visited Mar. 24, 2025).
18
See generally s. 212.055, F.S.; but see s. 212.055(3), F.S. (small county surtax may be approved by extraordinary vote of the
county commission as long as surtax revenues are not used for servicing bond indebtedness), and s. 212.055(5), F.S. (county
public hospital surtax may be approved by extraordinary vote of the county commission).
19
S. 125.0104, F.S.
20
S. 125.0104(3)(a)(1), F.S. considers “transient rental” to be the rental or lease of any accommodation for a term of six
months or less.
21
S. 125.0104(3)(c), F.S.
22
S. 125.0104(3)(d), F.S.
23
S. 125.0104(3)(m), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
A professional sports franchise facility tax may be levied up to an additional 1 percent.
24
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.
25
TDTs are levied in 62 of 67 counties, and total rates range from 2 to 6 percent.
26
Fiscal Year 2023-24 levies for these taxes were as follows:
Tax Statute
Counties Levying/
Can Levy
27
2023-24 Statewide
Revenues
28
Original TDT s. 125.0104(3)(c), F.S. 62/67 (all at 2%) $709 Million
Additional TDT s. 125.0104(3)(d), F.S. 56/59 $291 Million
High Tourism Impact TDT s. 125.0104(3)(m), F.S. 10/14 $201 Million
Pro Sports TDT s. 125.0104(3)(l), F.S. 46/67 $330 Million
Additional Pro Sports TDT s. 125.0104(3)(n), F.S. 36/65 $252 Million
Prior to the authorization of a new TDT, the levy must be approved by a countywide referendum held at a general
election
29 and approved by a majority of the electors voting in the county.
30 TDTs have no maximum period for
which they may be levied, and no currently adopted TDT has a scheduled expiration date.
31
Each county proposing to levy the original one or two percent tax must adopt an ordinance for the levy and
imposition of the tax,
32 which must include a plan for tourist development prepared by the tourist development
council.
33 The plan for tourist development must include the anticipated net tax revenue to be derived by the
county for the two years following the tax levy, as well as a list of the proposed uses of the tax and the approximate
cost for each project or use.
34 The plan for tourist development may not be substantially amended except by
ordinance enacted by an affirmative vote of a majority plus one additional member of the governing board.
35
Currently, once a county has obtained approval to levy a TDT tax through a referendum, that county is not required
to seek electorate approval through a referendum to continue levying such TDT.
Local Option Food & Beverage Tax (Miami-Dade)
In 1967, Florida authorized the municipal resort tax.
36 The law authorized cities and towns meeting certain
population requirements located within counties also meeting certain population requirements to levy the
tax.
37The tax could be levied at a rate of up to 4 percent on rentals of hotel rooms and similar accommodations, and
it could also be levied on sales of food and certain beverages consumed in restaurants and bars at a rate of up to 2
24
S. 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.
25
S. 125.0104(3)(n), F.S.
26
Office of Economic and Demographic Research, 2023 Local Government Financial Information Handbook, pp. 255-256,
available at https://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf, (last visited March 10, 2025).
27
Office of Economic & Demographic Research (EDR), Local Option Tourist Taxes County Tax Rates: CY 2007-2025, 2024 Rates,
available at http://edr.state.fl.us/Content/local-government/data/data-a-to-z/g-l.cfm (last visited March 16, 2025).
28
EDR, 2023 Local Government Financial Information Handbook (January 2024), p. 259, http://edr.state.fl.us/Content/local-
government/reports/lgfih23.pdf (last visited March 16, 2025)
29
Section 125.0104(6)(a), F.S.
30
Section 125.0104(6), F.S.
31
EDR, Local Option Tourist Taxes - Summary of Impositions, Expirations, and Rate Changes available at
https://www.edr.state.fl.us/Content/local-government/data/data-a-to-z/g-l.cfm (last visited March 14, 2025).
32
S. 125.0104(4)(a), F.S.
33
S. 125.0104(4), F.S.
34
See s. 125.0104(4), F.S.
35
See s. 125.0104(4), F.S. The provisions found in s. 125.0104(4)(a)-(d), F.S., do not apply to the high tourism impact tax, the
professional sports franchise facility tax, or the additional professional sports franchise facility tax.
36
Ch. 67-930, L.O.F.
37
Ch. 67-930, s. 1, L.O.F. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
percent.
38 The municipal resort tax is currently levied in the cities of Bal Harbour, Surfside, and Miami Beach, all of
which are located within Miami-Dade County.
39
Florida has since authorized Miami-Dade County to levy the local option food and beverage tax.
40 The local option
food and beverage tax consists of two taxes: a 2 percent tax on the sale of food, beverages, and alcoholic beverages
sold in hotels and motels, and a 1 percent tax on the sale of food, beverages, and alcoholic beverages sold at an
establishment licensed by the state to sell alcoholic beverages on site.
41 Sales in cities levying the municipal resort
tax were required to be exempt from the local option food and beverage tax through July 1, 2023.
42
In 2023, HB 7063,
43 authorized the imposition of the 1 percent local option food and beverage tax in a city or town
that levies the municipal resort tax if the levy is approved by referendum in the city or town at a general election.
HB 7073 (2024),
44 clarified that the approval of the tax in a referendum as authorized in the 2023 Tax Package
must be by a majority of the voters voting in the election (not a majority of registered voters). Currently, none of
the three cities have authorized the tax in a referendum at a general election.
45
Miami-Dade County reports collections for food and beverage taxes for Fiscal Year 2022-23 to have been $53.6
million, and estimates the Fiscal Year 2024-25 collections will be $55.0 million.
46
Referendum Procedures
The Florida Election Code provides the general requirements for a referendum.
47 The question presented to voters
must contain a ballot summary with clear and unambiguous language, such that a “yes” or “no” vote on the
measure indicates approval or rejection, respectively.
48 The ballot summary should explain the chief purpose of the
measure and may not exceed 75 words.
49 The ballot summary and title must be included in the resolution or
ordinance calling for the referendum.
50 For some discretionary sales surtaxes, the form of the ballot question is
specified by statute.
51
Five types of elections exist under the Florida Election Code: primary elections, special primary elections, special
elections, general elections, and presidential preference primary elections.
52 Historically, voter turnout during a
general election is higher than during other elections.
53 A referendum to adopt, amend, or reenact a local
government discretionary sales surtax under must be held at a general election. A referendum to reenact an
expiring surtax must be held at a general election occurring within the 48-month period immediately preceding the
effective date of the reenacted surtax. Such a referendum may appear on the ballot only once within the 48-month
period.
54
38
Id.
39
See Office of Economic and Demographic Research, 2023 Local Government Financial Information Handbook, p. 201, available
at https://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf, (last visited March 25, 2025).
40
S. 212.0306, F.S.
41
S. 212.0306(1), F.S.
42
S. 212.0306(2)(d), F.S. (2022)
43
Ch. 2023-157, L.O.F.
44
Ch. 2024-158, L.O.F.
45
EDR, 2024 Local Option Tourist/Food and Beverage Tax Rates in Florida Counties, available at
https://edr.state.fl.us/Content/local-government/reports/lgfih23.pdf, pp. 255-256 (last visited March 10, 2025).
46
EDR, Local Option Food and Beverage Tax Collections, Total Collections: LFY 2004-2025 available at
https://www.edr.state.fl.us/Content/local-government/data/data-a-to-z/g-l.cfm (last visited March 14, 2025).
47
S. 101.161, F.S.
48
S. 101.161(1), F.S.
49
Id.
50
Id.
51
See s. 212.055(4)(b), F.S.
52
S. 97.021(13), F.S.
53
Department of State, Division of Elections, Data and Statistics, Election Data, Voter Turnout, available at:
http://dos.myflorida.com/elections/data-statistics/elections-data/voter-turnout/ (last visited March 14, 2025).
54
S. 212.055(10), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2024 CS/HB 7073 McClain The bill as passed in the House
provided duration restrictions
for local taxes; removed before
final passage.
2023 HB 7063 McClain Ch. 2023-157, L.O.F., required
all referenda to approve local
taxes be held at specified
elections.
2022 CS/CS/HB 777 Robinson, W. Boyd Ch. 2024-214, L.O.F., required
certain TDTs to be approved at
general elections.
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Ways & Means Committee 13 Y, 4 N, As CS 3/20/2025 Aldridge Berg
THE CHANGES ADOPTED BY THE
COMMITTEE:
The PCS made technical and clarifying changes to:
Ensure only discretionary sales surtaxes subject to a referendum under
current law are subject to the renewals and limitations in the bill, other
than the surtax already excluded;
Correct cross-references and dates; and
Provide specificity for certain ordinance and referendum requirements.
Intergovernmental Affairs
Subcommittee
10 Y, 7 N 4/9/2025 Darden Jones
State Affairs Committee
-------------------------------------------------------------------------------------------------------------------------------------
THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
-------------------------------------------------------------------------------------------------------------------------------------