STORAGE NAME: h1221c.SAC
DATE: 4/22/2025
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/CS/HB 1221
TITLE: Local Option Taxes
SPONSOR(S): Miller, Basabe
COMPANION BILL: CS/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
14 Y, 12 N, As CS
SUMMARY
Effect of the Bill:
The bill provides that local governments may reduce or repeal any local discretionary sales surtax by a two-thirds
vote of the levying body beginning four years after the tax is levied, and that the local option food and beverage tax
may only be levied for an eight-year period, subject to eight-year renewals.
The bill also changes tourist development taxes from limited use revenue to general revenue, which must be used
to offset county property taxes beginning in 2026, dissolves tourist development councils, and dissolves tourism
promotion agencies unless the agency is affirmatively approved by resolution of the board of county
commissioners.
Fiscal or Economic Impact:
The Revenue Estimating Conference has not evaluated the impact of the bill on local government revenues.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Discretionary Sales Surtaxes
The bill provides express authority for a levying local government (the board of county commissioners or the
school board) of any discretionary sales surtax to reduce or repeal such surtax with a two-thirds vote of the board,
beginning four years after a surtax is levied. The reduced rate can be any lower rate otherwise allowable under the
applicable statutory provision. A reduced or repealed rate is effective on the January 1 following the board’s vote,
or on any subsequent January 1 as provided by the board. (Section 4)
Tourist Development Taxes (TDT)
The bill provides that, beginning July 1, 2025, all TDT revenues are available to counties to complete any project
under way as of July 1, 2025, or for performance of any contract in existence on January 1, 2025, pursuant to the
restrictions that exist currently. Revenues not needed for projects, contracts, or debt obligations may be used for
any public purpose, rather than being limited to the current authorized uses of TDT. Bonds or other debt
obligations may be refinanced, but the duration of such debt may not be extended and the outstanding principal
may not be increased, except to account for costs of issuance. (Section 1)
Beginning in 2026, a credit against county ad valorem taxes must be applied to property tax bills that, in total,
equals the prior year’s TDT collections less any revenue needed for debt service or to continue any contract in
effect on July 1, 2025. The credit on bills may either be proportionate shares of the TDT collections for all county
taxpayers, or can be allocated among certain categories of taxpayers according to an ordinance adopted by the
board of county commissioners. (Section 1)
All tourist development councils are dissolved December 31, 2025. (Sections 1 and 2)
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
The bill dissolves all county tourism promotion agencies but provides that such agencies may continue if
affirmatively extended by resolution of the board of county commissioners on or before December 31, 2025.
(Sections 1 and 2)
Local Option Food and Beverage Tax
The bill provides an 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. An ordinance levying such a tax may be reenacted for subsequent eight-year periods if approved in a
referendum. (Section 3)
Conforming Changes
The bill conforms cross-references to changes made by the bill. (Sections 5, 6, and 7)
Effective Date
The bill takes effect July 1, 2025. (Section 8)
FISCAL OR ECONOMIC IMPACT:
LOCAL GOVERNMENT:
The Revenue Estimating Conference has not evaluated the impact of the bill on local government revenues.
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.
2 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;
3
Financing local government infrastructure projects;
4
Providing additional revenue for specified small counties;
5
Providing medical care for indigent persons;
6
Funding trauma centers;
7
Operating, maintaining, and administering a county public general hospital;
8
Constructing and renovating schools;
9
Providing emergency fire rescue services and facilities;
10 and
1
Revenue Estimating Conference, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2025/_pdf/page161-
164.pdf (last visited Apr. 7, 2025).
2
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.
3
S. 212.055(1), F.S.
4
S. 212.055(2), F.S.
5
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.
6
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).
7
S. 212.055(4)(b), F.S.
8
S. 212.055(5), F.S.
9
S. 212.055(6), F.S.
10
S. 212.055(8), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Funding pension liability shortfalls.
11
Current rates range from 0.5 percent to 2.0 percent in each of the 65 counties currently levying one or more
surtaxes.
12 Many of the taxes have restrictions on what combination of taxes can be levied by a single county at one
time.
13
Fiscal Year (FY) 2023-24 levies for these taxes were as follows:
Surtax Statute
Counties Levying/
Can Levy
14
2023-24 Statewide
Revenue
15
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
16 $-
Most local discretionary sales surtaxes may only be approved by referendum, while some may be approved by a
vote of the county commission.
17 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
18 authorizes counties to levy five separate taxes on transient rental
19
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.
20
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.
21
11
S. 212.055(9), F.S.
12
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).
13
See, e.g., ss. 212.055(4)(a)6., 212.055(5)(f), and 212.055(9)(g), F.S.
14
See Office of Economic and Demographic Research (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).
15
Revenue estimates taken from 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).
16
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).
17
See generally s. 212.055, F.S.; but see ss. 212.055(3) (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 212.055(5), F.S. (county
public hospital surtax may be approved by extraordinary vote of the county commission).
18
S. 125.0104, F.S.
19
Section 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.
20
S. 125.0104(3)(c), F.S.
21
S. 125.0104(3)(d), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
A high tourism impact tax may be levied at an additional 1 percent.
22
A professional sports franchise facility tax may be levied up to an additional 1 percent.
23
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.
24
TDTs are levied in 62 of 67 counties, and total rates range from 2 to 6 percent.
25
FY 2023-24 levies for these taxes were as follows:
Tax Statute
Counties Levying/
Can Levy
26
2023-24 Statewide
Revenues
27
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
28 and approved by a majority of the electors voting in the county.
29 TDTs have no maximum period for
which they may be levied, and no currently adopted TDT has a scheduled expiration date.
30
Each county proposing to levy the original 1 or 2 percent tax must adopt an ordinance for the levy and imposition
of the tax,
31 which must include a plan for tourist development prepared by the tourist development council.
32 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.
33 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.
34
Once a county has obtained approval to levy a TDT through a referendum, that county is not required to seek
electorate approval through a referendum to continue levying such TDT.
Tourist Development Councils
A Tourist Development Council (TDC or Council) is a county level advisory council appointed by the governing
board of a county when the county intends to enact or renew the 1 or 2 percent Original TDT.
35 The Council must
22
S. 125.0104(3)(m), F.S.
23
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.
24
S. 125.0104(3)(n), F.S.
25
EDR, 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).
26
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).
27
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).
28
S. 125.0104(6)(a), F.S.
29
S. 125.0104(6), F.S.
30
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).
31
S. 125.0104(4)(a), F.S.
32
S. 125.0104(4), F.S.
33
See s. 125.0104(4), F.S.
34
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.
35
S. 125.01014(4)(b), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
prepare a tourist development plan that estimates the revenue from the tax and allocates the funds toward specific
uses.
36 The tourist development plan is prepared by the Council in anticipation of the county levying the TDT.
The board of county commissioners (Board) must approve the plan and incorporate it into an ordinance
authorizing the levy of the TDT.
37 County electors must then approve the ordinance authorizing the levy of the tax
by referendum. The Council is intended to have an advisory capacity and any major amendments it makes to the
tourism development plan must be approved by the Board.
Membership on a TDC is limited to citizens of the county and consists of the following
38:
One member of the Board;
Two elected municipal officials, one of whom must be from the most populous city in the county or sub-
county tax district; and
Six members who are individuals involved in the tourism industry, three or four of whom must be owners
or operators of motels, hotels, RV parks, or other tourist accommodations in the county.
The statute contemplates the Council providing guidance and oversight for the original TDT, but in some cases it
appears the TDC is involved in spending decisions for all five TDTs.
39
Local Option Food & Beverage Tax (Miami-Dade)
In 1967, Florida authorized the municipal resort tax.
40 The law authorized cities and towns meeting certain
population requirements located within counties also meeting certain population requirements to levy the tax.
41
The 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
percent.
42 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.
43
Florida has since authorized Miami-Dade County to levy the local option food and beverage tax.
44 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.
45 Sales in cities levying the municipal resort
tax were exempt from the local option food and beverage tax through July 1, 2023.
46
In 2023, HB 7063
47 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)
48 clarified that the approval of the tax in a referendum as authorized in the 2023 Tax Package
36
S. 125.0104(4)(c), F.S.
37
S. 125.0104(4)(d), F.S.
38
S. 125.0104(4)(e), F.S.
39
See, e.g., the Duval County TDC which “oversees the collection and distribution of the local-option tourist development tax
authorized to counties by s. 125.0104, F.S…Jacksonville currently levies a six percent tourist development tax…” and the Lee
County TDC where the “TDC members oversee the entire tourist development tax fund…” and the Orange County TDC, which
must “make recommendations to the board of county commissioners for the effective operation of the special projects or uses
of the tourist development tax revenue raised by the tax hereby levied…” (all last visited April 21, 2025).
40
Ch. 67-930, L.O.F.
41
Ch. 67-930, s. 1, L.O.F.
42
Id.
43
See EDR, 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).
44
S. 212.0306, F.S.
45
S. 212.0306(1), F.S.
46
S. 212.0306(2)(d), F.S. (2022).
47
Ch. 2023-157, L.O.F.
48
Ch. 2024-158, L.O.F. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
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.
49
Miami-Dade County reports collections for food and beverage taxes for FY 2022-23 to have been $53.6 million, and
estimates the FY 2024-25 collections will be $55.0 million.
50
Referendum Procedures
The Florida Election Code provides the general requirements for a referendum.
51 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.
52 The ballot summary should explain the chief purpose of the
measure and may not exceed 75 words.
53 The ballot summary and title must be included in the resolution or
ordinance calling for the referendum.
54 For some discretionary sales surtaxes, the form of the ballot question is
specified by statute.
55
Five types of elections exist under the Florida Election Code: primary elections, special primary elections, special
elections, general elections, and presidential preference primary elections.
56 Historically, voter turnout during a
general election is higher than during other elections.
57 A referendum to adopt, amend, or reenact a local
government discretionary sales surtax 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.
58
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.
49
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).
50
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).
51
S. 101.161, F.S.
52
S. 101.161(1), F.S.
53
Id.
54
Id.
55
See s. 212.055(4)(b), F.S.
56
S. 97.021(13), F.S.
57
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).
58
S. 212.055(10), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
7
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:
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 14 Y, 12 N, As CS 4/22/2025 Williamson Darden
THE CHANGES ADOPTED BY THE
COMMITTEE:
Provide express authority for the board of county commissioners or
school board levying a local discretionary sales surtax to reduce or
repeal such tax with a two-thirds vote of the board, beginning four
years after the surtax is levied.
Authorize the use of tourist development taxes for general purposes,
subject to exceptions for existing projects, contracts, and bonds funded
using TDT dollars.
Require counties, beginning in 2026, to use the amount of prior year
TDT collections to rebate county ad valorem taxes.
Dissolve tourist development councils and county tourism promotion
agencies, but allows counties to maintain their county tourism
promotion agency by adopting a resolution by December 31, 2025.
Conform cross-references.
-------------------------------------------------------------------------------------------------------------------------------------
THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
-------------------------------------------------------------------------------------------------------------------------------------