State panel advances bill limiting local business taxes after sharp pushback from cities and counties

Representative McFarland presented the PCS for HB 103, which removes the authority for many local governments to levy a local business tax while allowing some cities and counties to retain narrowly defined economic-development levies. The sponsors cited taxpayer relief and simplification.

The Florida Association of Counties and Florida League of Cities testified in opposition, arguing the tax funds essential local services, supports inspections, emergency planning and compliance, and represents one of only four local tax authorities. Jeff Scala (Florida Association of Counties) warned this is not the right time for a major local-revenue shift given uncertainty on property-tax policy; Charles Chapman (Florida League of Cities) said the tax funds firefighting inspections, zoning compliance and other city functions.

Proponents including the Florida Chamber waived in support. Committee debate focused on the fiscal magnitude (committee staff cited approximately $23 million collected by counties and $156 million by municipalities), administrative changes, and whether municipalities would still be able to perform inspections and safety functions. The PCS was reported favorably on a roll-call vote, 18 ayes and 5 nays.

Next steps: The PCS advances to further consideration; stakeholders recommended follow-up conversations about transition timing and revenue replacement options.