BILL SUMMARY DETAILS

SB 516 (Rodriguez) and HB 927 (Tuck) specific the methodology for the assessment of the structures and equipment used in aquaculture. The bills allow the property owner to request removal of its agriculture classification if the tax assessed based on such methodology exceeds the tax assessed based on the value of the structures and equipment. (Hughes)

HB 7061 (Ways and Means) and CS/SB 7068 (Finance and Tax) are the tax packages for the 2021 Session. The bills include a back-to-school and a disaster preparedness sales tax holiday. HB 7061 also includes a “recreation” tax holiday. The bills expand the current property tax discount from 50% to 100% for certain multifamily projects that provide affordable housing for low-income families. Other property tax changes in the bill include clarifying the application of an exemption from ad valorem taxation for portions of property used for charitable, religious, scientific or literary purposes; requiring the tax collector to accept late payments on the first installment of prepaid property taxes; and (in SB 7068) repealing the hospital community benefit reporting and creating two additional situations when a change in the ownership of homestead property would not result in the property being reassessed at just value. SB 7068 also clarifies that when a property is damaged or destroyed by a calamity,  ancillary improvements may also be repaired or replaced without the improvement being assessed at just value and that the assessment made for repaired or replaced property must be calculated based on the assessed value as of the January 1 immediately before the damage or destruction occurred. HB 7061 exempts structures and equipment used in the production of aquaculture products from separate ad valorem assessment. HB 7061 also allows that tourist development and convention development taxes can be used for flood mitigation projects at the discretion of local government and requires that all new or increased tourist development and convention development taxes must be approved by voters at a referendum. The bills also make a number of updates related to tax administration. HB 7061 passed the House (109-3) and is awaiting action by the Senate. (Hughes)

CS/HB 1241 (Stevenson) makes various updates to the statutes administering numerous taxes. Of note, the bill requires, rather than authorize, tax collectors to accept late payments of prepaid property taxes through July 31 and deletes a late payment penalty. CS/HB 1241 passed the House (115-0) and is awaiting action by the Senate. (Hughes)

HB 1037 (Roth) and SB 1210 (Baxley) authorize property owners of assessed property who have not filed personal property tax returns to qualify for tax exemption without filing an initial return. (Hughes)

CS/CS/SB 50 (Gruters) requires retailers with no physical presence in Florida to collect Florida's sales tax on sales of taxable items delivered to purchasers in Florida if the retailer makes a substantial number of sales into Florida or provides for the taxation of sales facilitated through a marketplace provider. The bill also deletes a provision that exempts an out-of-state dealer that makes retail sales into Florida from collecting and remitting any local option surtax. The bill temporarily diverts the increased collections in sales tax, due to this bill, to the Unemployment Compensation Trust Fund until it is replenished to pre-pandemic levels. The bill reduces the business rent tax from 5.5% to 2% once the Trust Fund reaches its pre-pandemic balance. CS/CS/SB 50 passed the House (93-24) and the Senate (27-12) and was signed by the governor on April 19, 2021. Effective July 1, 2021, except as otherwise provided. Chapter No. 2021-002. (Hughes)

SB 132 (Hutson) allows the rental of a portion of a dwelling, claimed to be a homestead for tax purposes, while the dwelling is physically occupied by the owner does not constitute the abandonment of the dwelling as a homestead. (Hughes)

CS/SB 1330 (Rodriguez) and CS/HB 571 (Smith, D.) expand the current exemption from ad valorem taxes for property used for nonprofit homes for the aged. CS/HB 571 passed the House (111-0) and is awaiting action by the Senate. (Hughes)

SB 674 (Rodriguez) and HB 563 (Rodriguez) authorize counties and municipalities to adopt ordinances to grant ad valorem tax exemptions to property owners whose properties are used for the government or affordable housing. The property owner must have taken affirmative steps to prepare the property to provide affordable housing to persons or families that meet specified income limits to qualify for the affordable housing exemption. For the governmental exemption, a governmental or public purpose is served if a person provides a service that the state, any of its political subdivisions or any municipality, agency, special district, authority or other public body corporate of the state could properly perform or serve and if the governmental or public purpose would otherwise be a valid purpose for the allocation of public funds. (Hughes)

CS/CS/SB 1214 (Gruters) and CS/CS/HB 889 (Borrero) specify the conditions for retaining the ad valorem exemption of an exempt property. The bills require that revenue derived from the incidental use of the property must support the charitable, religious, scientific or literacy purpose that the property is used for. CS/CS/HB 889 passed the House (118-0) and is awaiting action by the Senate. (Hughes)

SB 154 (Diaz) amends multiple provisions related to local government financial transparency. The bill expands public notice and public hearing requirements for local option tax increases, other than property taxes and taxes adopted by referendum and new long-term tax-supported debt issuances. Each local government is required to prominently post on its website the voting records on any action taken by its governing board related to tax increases and new tax-supported debt issuances. The bill imposes requirements on county property appraisers and local governments relating to Truth in Millage (TRIM) notices, millage rate history and the amount of tax levied by each taxing authority on each parcel.

Additionally, local governments will be required to conduct a debt affordability analysis prior to approving the issuance of new long-term tax-supported debt. The bill requires the local government annual audit reports to include information regarding compliance with the requirements of this newly created section of law. Failure to comply would result in the withholding of state-shared revenues. The bill revises the local government reporting requirements for economic development incentives. It requires each municipality to report to the Office of Economic and Demographic Research whether the incentive is provided directly to an individual business or by another entity on behalf of the local government and the source of dollars obligated for the incentive (including local, state and federal). (Hughes)

SB 1702 (Hutson) and HB 1555 (Harding) revise the types of lessees whose purposes and functions are deemed to be governmental, municipal, or public purposes. (Hughes)

CS/CS/SB 1186 (Brandes) and CS/CS/HB 1379 (Chaney) implement SJR 1182 or HJR 1377 if approved by 60% of voters at the next general election. The bills specify that changes to elevate certain homestead and non-homestead residential property do not increase the assessed value of the property under specific circumstances. The bills require the property owners to provide certification. CS/CS/HB 1379 passed the House (118-0) and is awaiting action by the Senate. (Hughes)

SJR 1182 (Brandes) and HJR 1377 (Chaney) propose an amendment to the Florida Constitution to authorize the Legislature to prohibit the consideration of improvements made to residential real property to improve the property's resistance to flood damage when determining assessed value of the property for the purposes of ad valorem taxation. HJR 1377 passed the House (118-0) and is awaiting action by the Senate. (Hughes)

HB 61 (Roth) and SB 1238 (Roth) – Percentage of Elector Votes Required to Approve Constitutional Amendment or Revision

HB 7043 (Public Integrity & Ethics Committee) addresses public officer, public employee and third-party conduct regarding solicitation and negotiation of conflicting and potentially conflicting financial relationships, addresses post-service lobbying restrictions for certain state officers and revises executive branch lobbyist registration requirements. The bill prohibits public officers and employees from soliciting an employment or contractual relationship from entities from whom they are prohibited from entering into conflicting employment and contractual relationships. In addition, the bill requires public officers and employees to report or disclose particular solicitations and offers of employment or contractual relationships. The bill revises executive branch lobbying registration provisions to require electronic registration and affirmative consent of the principal to be represented by a lobbyist. (O’Hara)

HB 215 (Sabatini) prohibits a local government from using public funds to retain a lobbyist to represent the local government before the legislative or executive branch. It would permit a full-time employee of local government to register as a lobbyist and represent the local government before the legislative or executive branch. The bill would also prohibit any person, except a full-time employee, from accepting public funds for lobbying. It provides for the filing of complaints with the Florida Commission on Ethics and the filing of civil actions for injunctive relief, as well as sanctions and recovery of attorney fees by prevailing parties. (O’Hara)

HB 853 (Sirois) amends provisions of the Code of Ethics for Public Officers and Employees relating to conflicting business and contractual relationships, voting conflicts, annual ethics training and financial disclosure requirements. For purposes of conflicting relationships and whether an officer or employee has a material interest in a business entity, the bill specifies that contractual relationships held by a business entity will be deemed to be held by the officer or employee if the entity is not publicly traded or the officer or employee is an officer, director or member who manages such entity. The bill amends voting conflict requirements to include special district and school board members and modifies participation requirements currently applicable only to appointed public officers to include elected county, municipal or other local public officers, special district or school board members. In addition to a prohibition on voting, such officer may not participate (i.e., discuss or debate) in the conflicted matter without first disclosing the nature of his or her interest. The bill expands persons required to file Form 6 (full) financial disclosure to include elected mayors and governing body members of municipalities having more than $10 million in total revenue. The Department of Financial Services is required to provide an annual report to the Commission on Ethics showing the total revenues for each municipality. A municipality’s failure to file its annual financial report with the Department creates a presumption the municipality has more than $10 million in annual revenues for purposes of the financial disclosure requirement. The bill lists the minimum course contents for public officer ethics training requirements and expands the class of officers required to complete annual ethics training to include special district and water management district board members. Persons required to complete annual ethics training must certify completion of the training on their financial disclosure forms as well as identify the name of the training provider. The failure to certify completion of ethics training or to identify the training provider is deemed a material error or omission. (O’Hara)

HB 1585 (Barnaby) creates the Florida Integrity Office and the position of Florida integrity officer within the Office of the Auditor General. The bill authorizes the integrity officer to investigate complaints alleging waste, fraud, abuse, misconduct or gross mismanagement in connection with the expenditure of public funds within state and local government. The bill directs the auditor general and the integrity officer to conduct random audits and inspections of appropriations projects appropriated in the prior year. The bill authorizes the auditor general and the Florida integrity officer to investigate or audit the financial activities of any local government. The bill defines “fraud,” “waste,” “abuse” and “misconduct” and provides procedures for the inspector general to report on activities by public officials or agencies to the Florida integrity officer. The bill imposes personal liability for repayment of funds upon persons or officials responsible for determinations of fraud, waste, abuse, mismanagement or misconduct in government. The bill authorizes the chief financial officer to commence investigations based on complaints or referral from any source. The bill specifies conditions for awards to employees under the Florida Whistleblower Act. The bill requires each public agency contract for services entered or amended after July 2020 to authorize the public agency to inspect specified records of the contractor. The bills prohibit the use of tax incentives to be paid to a state contractor or subcontractor for services provided or expenditures incurred pursuant to a state contract. HB 1585 passed the House (79-37) and is awaiting action by the Senate.

(O’Hara)

CS/CS/HB 573 (Beltran) and CS/SB 758 (Diaz) create a new statute establishing standards and mandatory five hours of training for the fiduciary duty of care for appointed local public officers and executive officers of local government entities. In addition, the bills impose restrictions on legal representation by government attorneys. The fiduciary duty and training requirements apply to appointed officials of various local boards and committees, including code enforcement boards, planning and zoning boards, land use boards, community redevelopment agency boards and pension boards. CS/SB 758 was amended to remove pension and retirement boards from the bill. CS/HB 573 was amended to remove certain municipal boards from the bill, such as code enforcement, planning and zoning, CRA and pension boards. The bills provide that each appointed public official and executive officer has a fiduciary duty of care to the governmental entity served and has a duty to act in accordance with laws and terms governing the office or employment, act with the care and competence normally exercised by private business professionals, act only within the scope of authority and refrain from conduct likely to damage the economic interests of the governmental entity. Further, such persons must become reasonably informed in connection with any decision-making function and keep reasonably informed concerning the performance of a governmental entity’s officers, agents and employees. The bills impose training requirements on appointed public officers and executive officers that require completion of at least five hours of board governance training per term served. The bills specify the minimum content of such training programs, including board governance best practices and fiduciary duty of care and liabilities imposed by the new law. The bills provide that all legal counsel employed by a governmental entity must represent the legal interest and position of the governing body of the governmental entity and not the interest of any individual or employee of the governmental entity. (O’Hara)

SB 656 (Brandes) makes various changes to elections procedures including voter registration, voter identification and polling locations. In addition, the bill expressly preempts a local government from imposing any limitation on contributions to a political committee or electioneering communications organization or limitation on any expenditures for an electioneering organization or an independent expenditure. (O’Hara)