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EXPLANATION OF TAX REVENUE IN CITY BUDGET

the Florida communications services tax and the local
communications services tax. Tax proceeds are The tax proceeds are considered general revenue for
transferred to county and municipal governments, the the county or municipality.
Public Education Capital Outlay and Debt Service Trust
Fund, and the state’s General Revenue Fund. Local Discretionary Sales Surtax

A county or municipality may authorize by ordinance the Eight separate local discretionary sales surtaxes, also
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levy of a local communications services tax. The local tax known as local option sales taxes, are currently
rates vary depending on the type of local government authorized in law and represent potential revenue

entity. For municipalities and charter counties that have sources for county governments generally. With
not chosen to levy permit fees, the tax may be levied particular surtax levies, municipal governments and
at a rate of up to 5.1 percent. For municipalities and school districts may receive all or some of the revenue
charter counties that have chosen to levy permit fees, the proceeds. The local discretionary sales surtaxes apply to
tax may be levied at a rate of up to 4.98 percent. Non- all transactions subject to the state tax imposed on sales,
charter counties may levy the tax at a rate of up to 1.6 use, services, rentals, admissions, and other authorized
percent. These maximum rates do not include add-ons of transactions authorized pursuant to ch. 212, F.S., and
up to 0.12 percent for municipalities and charter counties communications services as defined for purposes of ch.
or up to 0.24 percent for non- charter counties that have 202, F.S.
elected not to require and collect permit fees authorized
pursuant to s. 337.401, F.S., nor do they supersede Discretionary sales surtax applies to the first $5,000 of
conversion or emergency rates authorized by s. 202.20, any single taxable item, when sold to the same

F.S., which are in excess of these maximum rates. In purchaser at the same time. Single items include items
addition to the local communications services taxes, any normally sold in bulk and items assembled to comprise a
local option sales tax that a county or school board has working unit. The $5,000 limitation does not apply to
levied pursuant to s. 212.055, F.S., is imposed as a local the rental of commercial real property, transient
communications services tax, and the rate is determined rentals, or services. With regard to the sale of motor
in accordance with s. 202.20(3), F.S. vehicles, mobile homes, boats, or aircraft, the surtax
applies only to the first $5,000 of the total sales price. On
The tax revenues raised by or distributed to a county or the sale of a motor vehicle or mobile home, the tax rate
municipal government tax may be used for any public is determined by the county where the purchaser resides
purpose, including the pledge of such revenues for the as shown on the title or registration. On the sale of a
repayment of current or future bonded indebtedness. boat or aircraft, the tax rate is determined by the
However, any revenue raised by a tax imposed pursuant county where the boat or aircraft is delivered.
to s. 202.19(5), F.S., (i.e., a local option sales tax imposed
on communications services) is used for the same Public Service Tax/Utility Tax
purposes as the underlying local option sales tax imposed
by the county or school board pursuant to s. 212.055, F.S. Municipalities and charter counties may levy by
ordinance a public service tax on the purchase of
Business Tax electricity, metered natural gas, liquefied petroleum
gas either metered or bottled, manufactured gas either

The local business tax represents the fees charged and metered or bottled, and water service. The tax is levied
the method by which a local government grants the only upon purchases within the municipality or within the
privilege of engaging in or managing any business, charter county’s unincorporated area and cannot
profession, and occupation within its jurisdiction. exceed 10 percent of the payments received by the
seller of the taxable item. Services competitive with
Counties and municipalities may levy a business tax, and those listed above, as defined by ordinance, can be
the tax proceeds are considered general revenue for the taxed on a comparable base at the same rates; however,
local government. This tax does not refer to any fees or the tax rate on fuel oil cannot exceed 4 cents per gallon.
licenses paid to any board, commission, or officer for The tax proceeds are considered general revenue for
permits, registration, examination, or inspection. the municipality or charter county.
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