Bill > H0787

This bill modifies how ad valorem taxes (property taxes) are calculated and levied in Florida, primarily focusing on limiting tax rate increases. The bill changes how the "rolled-back rate" (the tax rate that would generate the same revenue as the previous year) is computed by including new construction and other value changes. It restricts local government entities like counties, municipalities, and special districts from increasing their tax rates beyond 102 percent of the rolled-back rate, effectively capping potential tax increases. If a taxing authority collects ad valorem revenues exceeding this 102 percent threshold, they must either return the excess money to taxpayers on a prorated basis or use it to pay down existing debt. The bill eliminates previous provisions that allowed higher tax rates through supermajority votes or referendums, making the 102 percent cap a hard limit. This legislation aims to provide more predictability and potential tax relief for property owners by constraining local government's ability to increase property tax revenues. The changes will take effect on July 1, 2025, giving local governments time to adjust to the new tax calculation and rate limitations.

Budget and Finance

https://www.flsenate.gov/Session/Bill/2025/787