Bill > S0996

This bill modifies Florida's laws regarding ad valorem taxes (property taxes), specifically changing how tax rates are calculated and limited. The bill revises the method of computing the "rolled-back rate" (the tax rate that would generate the same revenue as the previous year, accounting for various property value changes) by adjusting how certain value changes are considered. It limits local government taxing authorities to levying a maximum of 102 percent of the rolled-back rate, effectively capping potential tax increases. Importantly, the bill prohibits taxing authorities from adopting a higher tax rate beyond this 102 percent threshold, removing previous provisions that allowed higher rates through supermajority votes or referendums. If a taxing authority collects ad valorem revenues exceeding the 102 percent threshold, the excess must be either returned to taxpayers on a prorated basis or used to pay down debt. This legislation aims to provide more predictability and restraint in local property tax increases, offering some protection to property owners against significant tax rate hikes. The bill is set to take effect on July 1, 2025, giving local governments time to adjust to the new tax rate calculation and limitation rules.

https://www.flsenate.gov/Session/Bill/2025/996