Happy new year to all of our wonderful clients, team members and more! The coming of a new year brings with it excitement, new beginnings, and perhaps most importantly, many changes. With the dawning of the year 2023, there are many key changes to Florida state law which took effect on January 1.
Several of these changes are likely to affect business owners in a variety of ways.
As a business owner, it is important for you to have knowledge about these changes and understand how these changes may affect you and your business in the new year. Read on to learn more about what specific changes will be taking effect, and how these changes may affect your business.
Disaster Assistance:
In response to the devastating 2021 collapse of the Champlain Towers South building in Surfside, Florida, state lawmakers authorized the refund of ad valorem taxes, more commonly known as property tax rebates, when residential properties are rendered uninhabitable for a minimum of 30 days by disasters.
During the December special session, state lawmakers also passed SB 4-A to make similar property tax rebates available to property owners who sustained damage in Hurricane Ian and Hurricane Nicole this past Fall.
Read the full text of SB 4-A here: https://www.flsenate.gov/Session/Bill/2022A/4A.
How does this change affect my business?
If your business suffered damage during Hurricane Ian or Hurricane Nicole this past Fall, you may be able to receive a tax refund. Property owners will be able to apply to county property appraisers between January 1 and April 1, 2023.
Property Insurance:
During the December special session, Florida lawmakers approved the end of the assignment of benefits for property insurance, which has long been considered controversial. The practice of the assignment of benefits has homeowners signing over claims to contractors, who then pursue payments from insurers.
Essentially, part of a policyholder’s insurance benefits is transferred to a third-party. Insurers have long argued that this practice leads to unnecessary repairs being performed along with increased repair costs, as well as increased litigation costs, which, all together, then lead to higher insurance premiums.
Read the full text of SB 2-A here: https://www.flsenate.gov/Session/Bill/2022A/2A
How does this change affect my business?
Business owners will no longer be able to utilize the practice of the assignment of benefits, which could lead to lower insurance premiums. This change could particularly impact those in the business of commercial real estate or landlords. The prohibition on assignment of benefits (SB 2-A) will apply to policies issued on or after January 1, 2023.
Workers’ Compensation Rates:
An average 8.4 percent decrease in workers’ compensation insurance rates is taking effect this January, making this the sixth consecutive year that average workers’ compensation rates have decreased.
How does this change affect my business?
This change is a positive one for business owners, as it means lower insurance costs for employers. The decrease applies to both new and renewal workers’ compensation insurance policies effective in Florida as of January 1, 2023.
Miya’s Law:
Earlier this past year, Florida lawmakers passed a law (SB 898) that requires apartment landlords to conduct thorough background checks on all employees. Employees must also maintain a system for handling and logging the issuing of keys.
The bill is referred to “Miya’s Law” in honor of 19-year-old Miya Marcano, a student who went missing from her Orlando apartment in September of 2021 and was found dead a week later. The killer worked as a maintenance worker at Marcano’s apartment complex.
Read the full text of SB 898 here: https://www.flsenate.gov/Session/Bill/2022/898
How does this change affect my business?
This change will affect commercial real estate business owners and landlords in general. Landlords will need to conduct thorough background checks on all employees and ensure there is a system in place for the handling and issuing of keys, to secure the safety of their tenants.
Minimum Wage Increase:
In November of 2020, Florida voters approved increases to the state’s minimum wage, which will gradually increase from the current $8.65 an hour to $15 an hour by September of 2026. To comply with the law, employers must follow the below hourly wage schedule for non-tipped employees:
Effective Date
January 1, 2021
September 30, 2021
September 30, 2022
September 30, 2023
September 30, 2024
September 30, 2025
September 30, 2026
Florida Minimum Wage
$8.65
$10.00
$11.00
$12.00
$13.00
$14.00
$15.00
How does this change affect my business?
While this change will not directly affect your business until September 30, 2023, it is important for business owners to plan for increasing their wages for non-tipped employees to $12.00 an hour on that date.
Uniform Commercial Code:
Bill SB 336 updates portions of the Uniform Commercial Code, or UCC. The UCC is “a set of laws, adopted by all fifty states, governing and providing uniformity in commercial transactions in the United States.” This bill protects the free transfer of certain business interests, exempting ownership and parts of ownership interest.
Read the full text of SB 336 here: https://www.flsenate.gov/Session/Bill/2022/336
How does this change affect my business?
This change should be a good one for business owners as it hopes to remove potential conflicts with Article 9 of the UCC, which “governs secured transactions, meaning transactions involving the granting of credit secured by personal property (‘collateral’), where the creditor may take possession of the collateral if the debtor defaults on the loan.” Essentially, this change protects the transfer of business interests.
Electronic Filing of Taxes:
Lawmakers have approved a bill which would lower Florida’s tax filing and payment threshold in 2023, in the hopes of creating more cost savings and cutting down the number of papers returned and checks received. Currently, taxpayers must “file returns and remit payments electronically when the amount of taxes paid in the prior state fiscal year was $20,000 or more.” With the new law, the payment threshold will be lower to $5,000 or more.
Read the full text of SB 2514 here: https://www.flsenate.gov/Session/Bill/2022/2514
How does this change affect my business?
This should be another good change for business owners, as it will make it easier for business owners to file their taxes electronically.
The attorneys at The Orlando Law Group represent both experienced and new business owners throughout Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout central Florida. Whatever your level of business experience, the lawyers at The Orlando Law Group are here for you.
If you are dealing with a business issue or looking for some preventative business legal services, please reach out to our office at 407-512-4394, fill out our online contact form.
If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola, and West Orange counties to assist you.
Last Updated on January 13, 2023 by The Orlando Law Group
