Ocala council set for Oct. 20 final vote on ending the city business tax, with refunds requested
A proposed ordinance would abolish Ocala's business tax receipt for every business inside city limits. City staff also want refunds for owners who already paid for 2026-27. The repeal is not law until council's second and final vote, which Only In Ocala reports is set for Oct. 20.
Dated location file photo, Jan. 23, 2010: The Ocala City Hall sign on Southeast Osceola Avenue, surrounded by landscaping and mature trees. Photo: Ebyabe / Wikimedia Commons (CC BY-SA 2.5). Resized; website wordmark added. Photo source · License
Businesses inside Ocala city limits would no longer owe the city's annual local business tax under an ordinance now before City Council. Ordinance 2027-1 would abolish both the business tax receipt and the business tax certificate for every business, profession and occupation in the city.
Council introduced the ordinance at its Oct. 6 meeting, and the second and final reading is scheduled for Oct. 20, according to Only In Ocala, which reported that Council Member Kristen Dreyer introduced it. Nothing changes until that vote; the current code remains in effect.
| Year | Revenue | Staffing cost (implementation only) |
|---|---|---|
| 2022 | $457K | $64K |
| 2023 | $426K | $61K |
| 2024 | $411K | $68K |
| 2025 | $374K | $69K |
Source: ocala.legistar.com
What would change for business owners
The city uses two names for the same tax. The receipt covers commercial businesses generally, while the certificate covers professions, professional service providers and occupational classifications. The ordinance ends both.
City staff also asked council to approve refunds for customers who already paid for the 2026-27 year. That is a staff request in the city's file, not a decision; whether and how refunds are issued depends on what council approves.
If adopted, the repeal would take effect immediately once the mayor approves it or it becomes law without that approval, Only In Ocala reports in its reading of the ordinance.
What would not change
The ordinance states that ending the tax does not exempt any business from building codes, zoning rules or life-safety fire inspections. Those remain enforceable through the city's Growth Management Department, Building Division and Ocala Fire Rescue.
Only In Ocala also reports that state professional licenses and contractor licensing are unaffected.
Why staff want to end it
The city's fee schedule was adopted in September 1995 and has not been comprehensively updated in more than 30 years, according to the Growth Management staff report. Staff say the old business categories no longer fit today's market.
Revenue has fallen while staffing costs have edged up, as the table shows. Those staffing figures cover salaries only. Counting facilities, software, legal and administration, staff say total costs are likely higher than $100,000 a year, and that figure does not include enforcement.
The city has 4,462 active receipts, but staff estimate the number of businesses actually operating is possibly double or more, pointing to an equity problem between those who pay and those who don't. Staff recommend approval, and state law allows a repeal by simple majority vote.
The staff file also cites state action. HB 103, which would have repealed the state law authorizing these taxes, passed the Florida House 82-26 in 2026 but did not get out of the Senate Appropriations Committee. The ordinance lists Leesburg, Volusia County and Sarasota County among governments that have already dropped their programs.
The cost to the city budget
The adopted 2026-27 budget counts on $426,000 in General Fund revenue from the tax. If council repeals it, the Budget Office will cut that revenue line and reduce the estimated amount in the General Fund Reserve for Contingencies, according to the staff report.
Outside city limits
Businesses in unincorporated Marion County already pay no county business tax. Only In Ocala, citing the Marion County Tax Collector, reports that county commissioners voted 5-0 in 2006 to repeal the county's occupational license, effective Oct. 1, 2006. Belleview and Dunnellon set their own requirements, so businesses there should check with those cities.
For Ocala owners whose receipt is due or who are opening now, the practical step is to follow current city requirements until the Oct. 20 outcome is known, and then watch what council decides on the refund request.
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