Wednesday, August 25, 2021

Home Based Business in Florida: Local Regulations Ineffective Pursuant to F.S. 559.955

Until the passage of Florida Statute Section 559.955, home occupation ordinances applied, and varied on the types of businesses allowed, the activities authorized, and the permitting, licensing, fees and taxes imposed. This statute passed April 30, 2021 and was signed by the Governor on June 29, 2021.

Common home occupation regulation areas include residential character requirements, licensing/permitting/certification, permitted home occupations, prohibited home occupations, signage, employees, traffic and parking, storage and sale of merchandise, and floor area used for the home occupation.

Some examples of local regulation of home-based businesses in Florida include:

In Volusia County, home-based businesses are required to occupy no more than 25 percent of the habitable floor area of the residence;

In Tampa, home-based businesses are prohibited from storing or selling merchandise, and may not conduct business in any accessory building;

In Naples, home-based businesses are not allowed to conduct retail, wholesale, or warehousing activities at the residence;

In Gainesville, a home-based business may not have more than one automobile used for the home-based business parked on the premises within view of surrounding properties. Such automobile may not have more than two signs, not exceeding two square feet in area, each mounted flat against or painted along the sides;

Jacksonville limits home occupations to small-scale, limited businesses that do not detract from the residential character of the neighborhood, and limits the floor area that may be used by the home occupation;

Orlando requires home occupations to obtain an occupational license, and the applicant must also submit detailed information relating to the physical space of the home. Orlando also prohibits certain specified occupations;

Miami limits home occupations to specified occupations, and occupations that do not generate high vehicular demand and limits the workspace of certain specified occupations;

Miami-Dade County prohibits on-site signage related to a home occupation;

Winter Park prohibits employees other than family members living in the house, and prohibits the use of accessory buildings; and

Clearwater requires traffic generated by the home-based business to be no greater in volume than regular residential traffic, limits the use of commercial vehicles, and prohibits parking by marked vehicles on the property.

General law determines whether local governments are able to regulate businesses, and to what degree. Currently, some local governments have enacted ordinances specific to regulating home-based businesses, or businesses which operate out of a residence.

Florida Statute § 559.955 provides that local governments may not enact or enforce any ordinance, regulation, or policy, or take any action to license or otherwise regulate a home-based business in a manner that is different from other businesses in a local government’s jurisdiction. In order to be considered a home-based business, the statute requires that the:

Business operates, in whole or in part, from a residential property;

Employees of the business must reside in the residence, except for up to two employees or independent contractors who work at the residence and any number of remote employees;

Parking related to business complies with local zoning requirements and may not be greater than would be expected at a residence where no business is conducted;

Use and external modifications of the residential property are consistent with the uses, residential character, and architectural aesthetics of the neighborhood;

Business complies with local regulations for signage, noise, vibration, heat, smoke, dust, glare, fumes, noxious odors, hazardous or flammable materials, vehicles, and trailers, provided that such regulations are not more stringent than those for a residence where no business is conducted;

Business may not conduct retail transactions at a structure other than the residential dwelling, except incidental and short term business activities may be conducted at the residential property; and

Activities of the home-based business are secondary to the use as a residential dwelling.

The statute provides that home-based businesses will only be subject to applicable business taxes in the county and municipality where the home-based business is located. The statute allows any adversely affected current or prospective home-based business owner to challenge any local government action regulating home-based businesses. The prevailing party may recover reasonable attorney fees and costs.

The application of the statute does not supersede:

Any current or future declaration or declaration of condominium, cooperative document, orhomeowners’ association declaration or declaration of covenant.

Local laws, ordinances, or regulations related to transient public lodging establishments or vacation rentals that are not otherwise preempted under chapter 509.

 


 


 

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