House approves Adam Botana proposal to eliminate most local business taxes across Florida

The House has voted to eliminate most local business taxes across the state, advancing a proposal supporters say will ease the burden on small businesses.

But critics warn the measure could destabilize local government budgets amid broader tax reform talks.

HB 103, sponsored by Bonita Springs Republican Rep. Adam Botana, would dismantle state statutes that authorize local governments to levy local business taxes, commonly known as business tax receipts or occupational license taxes, ensuring most cities and counties would no longer be permitted to charge an annual local business tax.

Botana told Representatives the change provides meaningful relief to small businesses. The House ultimately cast a 82 to 26 vote Tuesday to approve the measure.

“Businesses should not have to pay local business tax just for the privilege of operating a business in a city or county,” Botana said. “They are regulatory burdens on small businesses and hinder growth.”

Municipalities that already impose a business tax measured by gross receipts, rather than a flat annual fee, would be allowed to continue collecting that tax — though they would be prohibited from increasing the rate. 

Counties that were levying the tax for economic development purposes as of Jan. 1 could also continue collecting it. However, those County Commissions would retain the authority to repeal the additional tax by ordinance, and once repealed, the authority to levy it would permanently expire.

Opponents warn that eliminating the tax would remove one of few revenue tools available to local governments, particularly as lawmakers debate property tax reform. Critics questioned whether removing that revenue could force cities and counties to either reduce services or shift costs onto residents through higher millage rates or increased fees.

When questioned about the fiscal impact to local governments, Botana characterized the repeal as “about $200 million off the backs of small businesses in the state of Florida.”

Critics also argued that business tax receipts function as a record-keeping tool, helping municipalities track which businesses are operating within their jurisdictions and ensure compliance with state licensing requirements.

The Senate is still considering a companion bill. Tavares Republican Sen. Keith Truenow introduced SB 122, and the bill has cleared its first of three Senate Committees.

If approved by the full Legislature and signed by the Governor, the legislation would take effect July 1.