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.

 

 

 

Biden to Cancel $5.8 Billion in Student Loans

The Biden administration announced on Thursday, August 19, 2021 that it will be automatically wiping out the federal student loan debt for 323,000 borrowers, as reported by Forbes.com.

Bankruptcy Law Firm Agrees to Pay More than $300,000 in Relief

 

National Consumer Bankruptcy Law Firm Agrees to Pay More than $300,000 in Relief to Consumers and to a Six-Year Practice Ban in Settlement with U.S. Trustee Program

The Department of Justice’s U.S. Trustee Program (USTP) has entered into a settlement with national consumer bankruptcy law firm Deighan Law LLC, previously known as Law Solutions Chicago and doing business as UpRight Law (UpRight).  The settlement is set forth in a consent order entered by the Bankruptcy Court for the District of Montana on March 9 and resolves enforcement actions filed by the USTP over allegations of misconduct relating to UpRight’s representation of Montana consumers as debtors or prospective debtors in bankruptcy cases.  As stipulated in the settlement, UpRight has paid or will pay more than $300,000 in monetary relief and will be barred from representing bankruptcy clients in Montana for six years.

Read the entire news release from the Department of Justice at  https://www.justice.gov/opa/pr/national-consumer-bankruptcy-law-firm-agrees-pay-more-300000-relief-consumers-and-six-year?fbclid=IwAR0OtB9MjHhbUiIMtHOP27U35aC7oSQnlbFmVGWJ1d-xytIn44EBj_ou4Q4

BEAUTIFUL NEW OFFICE

 

I am pleased to announce I have moved into my new office in Green Cove Springs. This office, while still convenient to Clay, Bradford, and Duval Counties, it is significantly more convenient to St. Johns County and Putnam County.

As we all know, we are still working our way through the COVID-19 pandemic. While not downplaying the effects of the pandemic on our lives, our family, our community and our economy, it has caused us to take pause and consider life from a different perspective; we have slowed down and taken account of what is important to us; and from a business perspective, as many have learned to work from home, we have learned how to transact business virtually.

While I am excited to show off my new office, I am still offering virtual consultations either by phone or computer platforms such as Zoom. This is wonderful for both my clients that have difficulty traveling and for those in outlying counties.

My new address is

722 North Orange Avenue, Green Cove Springs, Florida 32043,

and my phone number is still 904-652-0060.

President Biden Extends Parts of the CARES Act

 

President Joe Biden signed the “COVID-19 Bankruptcy Relief Extension Act” into law to extend provisions providing financially distressed consumers and small businesses greater access to bankruptcy relief. The legislation extended personal and small business bankruptcy relief provisions that were part of the CARES Act through March 27, 2022. 

The is significant, especially for small businesses electing to file under subchapter V.  See H.R. 1651; however, the “Consolidated Appropriations Act of 2021” (CAA) was not extended.

Other bankruptcy provisions extended to 2022 by the COVID-19 Bankruptcy Relief Extension Act include:

• Amending the definition of “income” in the Bankruptcy Code for chapters 7 and 13 to exclude coronavirus-related payments from the federal government from being treated as “income” for purposes of filing bankruptcy.
• Clarifying that the calculation of disposable income for purposes of confirming a chapter 13 plan shall not include coronavirus-related payments.
• Explicitly permitting individuals and families currently in chapter 13 to seek payment plan modifications, including extending their payments for up to seven years.

If you find yourself either experiencing financial difficulties, or foresee the possibility of financial difficulties, as a result of the pandemic, you should seek the advise of a competent bankruptcy professional in your area that can help you come up with a financial game plan moving forward.

IRS Extends Tax Filing Deadline For 2020 Taxes

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. 

Earlier this year, following the disaster declarations issued by the Federal Emergency Management Agency (FEMA), the IRS announced relief for victims of the February winter storms in Texas, Oklahoma and Louisiana. These states have until June 15, 2021, to file various individual and business tax returns and make tax payments. This extension to May 17 does not affect the June deadline. See the following articles:

https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

https://www.bloomberg.com/news/articles/2021-03-17/irs-plans-to-delay-tax-deadline-to-mid-may-after-chaotic-year

Covid 19 Foreclosure Moratoriums Extended

 

FORECLOSURE MORATORIUMS

The vaccine rollout is proceeding, but the economic effects of the pandemic are still being assessed.  There is some relief for borrowers whose mortgages are backed or owned by the federal government. The moratorium on foreclosures imposed by the Federal Housing Administration (FHA), Veterans Administration, the U.S. Department of Agriculture (USDA), Fannie Mae, and Freddie Mac will remain in effect until June 30, 2021.

 

The bad news is, eventually the mortgages will have to be paid up.  While it is not known what the government will do regarding the mortgage arrears, some attorneys are anticipating an avalanche of foreclosure filings which may lead to an avalanche of bankruptcy filings.  

 

Keep in mind, the moratorium is not mortgage relief.  Once the moratoriums end, the mortgage arrearage will have to be paid.  You may want to call a consumer advocate attorney in your area to see what options you may have.