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Commission approves 5% increase in local business tax; revenue to general fund
Summary
Commissioners approved a 5% increase to the local business tax. The city says the measure will generate modest additional revenue for the general fund; most licensees will see only small annual increases.
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The City Commission approved an ordinance increasing the local business tax by 5 percent. Financial services director Dennis Winn said the city has not raised the local business tax since 2019 and that the change follows allowable state authorization. The tax is an occupational/business license tax established by state law and collected by the city.
Staff said the local business tax is levied by category and affects roughly 4,300 accounts; about 60 percent of businesses will see an annual increase of approximately $6.50. The tax revenue is deposited to the general fund to support municipal services.
Commissioners discussed comparative per‑capita local business revenues across Florida cities and concluded the increase keeps Gainesville’s business tax relatively low in the peer set. The ordinance passed on roll call unanimously.
