Gainesville commissioners approve 5% increase to local business tax rates

The Gainesville City Commission on May 1 directed the city attorney to draft an ordinance that would increase the city’s local business tax (occupational license) rates by 5% for the upcoming fiscal year.

Commissioners voted unanimously to move the measure forward after a brief discussion and no public comment. The action was taken during an agenda update and then formal motion to direct staff to draft the ordinance.

Finance staff described the proposed increase as modest and routine. Finance Director Russell told commissioners the business tax “has not been changed in 25 years” and said a 5% increase would have a small impact on individual businesses: “A business that would owe $105 for the year would see an increase to $110.25.” He said the revenue from the fee is general revenue and is not earmarked for a specific program.

Russell also told the commission that state law limits options the city can use to alter business-tier calculations: he said the Florida Legislature had constrained cities’ ability to perform equity studies that would support tier changes, leaving periodic percentage increases as the available tool to update this fee.

Commissioners who spoke supported public discussion of the change; several said the increase was modest and long overdue after decades without adjustment. No public speakers were signed up on the item and the motion passed without objection.

The next step is for the city attorney to draft the ordinance language and return it to the commission for formal readings and adoption according to the city’s legislative schedule.