2010-27337 Reso2010-27337
RESOLUTION NO. .
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, SUPPORTING AND
ENCOURAGING THE STATE LEGISLATURE AND THE GOVERNOR
TO SUPPORT BILLS SPONSORED BY STATE SEN. BENNETT (SB 996),
STATE SEN. LYNN (SB 156) AND STATE REP. LONG (HB 335), WHICH
LEGISLATION WOULD AMEND FLORIDA LAW TO EXPRESSLY
PROVIDE THAT ONLINE INTERNET TRAVEL FIRMS BE REQUIRED
TO PAY SALES AND TOURIST-RELATED TAXES ON THE FULL
PRICE OF ROOMS THEY RESERVE FOR CUSTOMERS.
WHEREAS, Chapter 212 of the Florida Statutes presently establishes the imposition of a
"transient rental tax" on persons who engage in the business of renting or leasing certain living
quarters in connection with any hotel, apartment house, roominghouse, tourist or trailer camp,
mobile home park, recreational vehicle park, condominium, or timeshaze resort; and
WHEREAS, as a result of current language in Florida law relating to the definition of
"rent" subject to taxation, online Internet travel firms have been able to obtain excess profit by
not charging tax on the higher, retail rate they chazge customers for rooms they secure at
reduced, wholesale prices from hotels; and
WHEREAS, according to Attorney General Bill McCollum, the difference in tax dollazs
between the tax remitted by such online travel companies and the amount properly due "...is
costing tens of millions of dollazs in tourist-tax revenue for counties struggling with recession-
linked budget woes"; and
WHEREAS, in order to clarify Florida law to expressly provide that online companies
be required to pay sales and tourist-related taxes on the higher rate such companies chazge, the
attached legislation has been proposed by State Senator Mike Bennett (SB 996), Senator Evelyn
Lynn (SB 156), and State Representative Janet Long (HB 335); and
WHEREAS, the Mayor and City Commission of the City of Miami Beach strongly
support and encourage the Florida Legislature and Governor to take comprehensive state-wide
action via the passage of these proposed measures, which acts will enable local governmental
entities such as the City of Miami Beach to collect their needed and rightful shaze of such
transient rental taxes.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach support and encourage the State Legislature and the
Governor to support bills sponsored by State Senator Bennett (SB 996), State Senator Lynn (SB
156), and State Representative Long (HB 335), which legislation would amend Florida Statutes
Chapter 212 to expressly provide that third-party travel intermediaries such as online intemet
travel firms be required to pay sales and tourist-related taxes on the full price of rooms they
reserve for customers.
PASSED and ADOPTED this 3
ATTEST:
CITY CLERK
day of Ftbr~r 2010.
L?' /. }~~p~/
O
(Requested by Commissioner Jerry Libbin)
F:\atto\OLU\RES-0RDUntemetTravelTax.doc
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m MIAMIBEACH
OFFICE OF THE CITY ATTORNEY
105E SMITH, CITY ATTORNEY COMMISSION MEMORANDUM
TO: ~ Honorable Mayor Matti Herrera Bower
Members of the City Commission
Jorge Gonzalez, City Mana er
7
FROM: Jose Smith, City Atto , ey
'
'
DATE: February 3, 2010
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SUPPORTING
AND ENCOURAGING THE STATE LEGISLATURE AND THE
GOVERNOR TO SUPPORT BILLS SPONSORED BY STATE
SEN. BENNETT (SB 996), STATE SEN. LYNN (SB 156), AND
STATE REP. LONG (HB 335), WHICH LEGISLATION
WOULD AMEND FLORIDA LAW TO EXPRESSLY PROVIDE
THAT ONLINE INTERNET TRAVEL FIRMS BE REQUIRED
TO PAY SALES AND TOURIST-RELATED TAXES ON THE
FULL PRICE OF ROOMS THEY RESERVE FOR
CUSTOMERS.
Pursuant to the request of Commissioner Jerry Libbin, the attached Resolution is submitted for
consideration by the City Commission regarding the need for State Legislative adoption of
proposed amendments to State law which would expressly require online travel firms to pay
sales and tourist-related taxes on the full price of rooms they reserve for customers.
F:\atto\OLIJ\CMEMO\Libbinl ntemetTransTax.doc
Agenda Item__
We are canmittcd io providing excellent public service and wfey to all who live, work, and ploy in our vil Date ~~~
_2-
Florida Senate - 2010 SB 996
By Senator Bennett
21-00830-10 2010996_
1 A bill to be entitled
2 An act relating to the transient rentals tax; amending
3 s. 212.03, F.S.; defining terms; requiring a room
4 remarketer to collect and remit taxes on the total
5 rent charged to customers for the occupancy of a
6 transient rental accommodation; requiring certain
7 persons to report and remit the tax on certain
8 transient rentals; providing requirements, procedures,
9 and limitations; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsections (8), (9), and (10) are added to
14 section 212.03, Florida Statutes, to read:
15 212.03 Transient rentals tax; rate, procedure, enforcement,
16 exemptions.-
17 (8) For purposes of this section, ss. 125.0104 125.0108
18 and 212.0305, and chapter 67-930 Laws of Florida as amended
19 the business of renting leasin letting, or grantin a license
20 to use transient rental accommodations includes the business of
21 acting as a room remarketer.
22 (9)(a) For the pur oses of this section the term•
23 1. "Net rent" means the rent received by an operator from a
24 room remarketer.
25 2. "Room remarketer" means any person, excluding the
26 operator, having any ri ht access ability or authority
27 through an Internet transaction or any other means whatsoever
28 to offer, reserve, book, arran e for remarket distribute
29 broker, resell, or facilitate the transfer of rooms, the
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Florida Senate - 2010
SB 996
21-00830-10 2010996_
30 occupancy of which is subject to tax under ss. 125.0104,
31 125.0108, and 212.0305, and chapter 67-930, Laws of Florida, as
32 amended.
33 (b) The term "total rent" or "total rental" as used in this
39 section and the terms "total consideration" and "rent" as used
35 in chapter 67-930, Laws of Florida, as amended, have the same
36 meaning and include the consideration received for occu ancy
37 valued in money, whether received in money or otherwise,
38 including all receipts, cash, credits, and property or services
39 of any kind or nature, including any service or bookin fees
40 that are a condition of occupancy, and also any amount for which
91 credit is allowed by the operator or room remarketer to the
42 occupant, without any deduction therefrom whatsoever.
43 (10) A person who acts as a room remarketer shall register
49 with the department and collect and remit taxes on the total
95 rent charged to his or her customers, unless the registered
96 owners or operators of the accommodations agree in writin to
47 report and remit taxes on behalf of the remarketer. Any written
48 agreement must require the room remarketer to report total
99 taxable sales and taxes due and pay the taxes collected to the
50 owner or operator by the last day of the month in which the
51 customer pays the rent or the last day of the month in which the
52 customer completes the occupancy of the accommodation. The owner
53 or operator shall report and remit the taxes along with the
59 owner or operator's return, which is due in the month following
55 the month in which the taxes are paid to the owner or operator
56 The owner or operator is not liable for any tax penalty or
57 interest due as a result of the failure of the room remarketer
58 to accurately report and remit the taxes imposed by this section
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Florida Senate - 2010 SS 996
21-00830-10 2010996
or by s. 125.0104, s. 125.0108, or s. 212.0305, or s. 2 of
chapter 67-930, Laws of Florida, as amended. If the owner or
operator does not agree to report and remit taxes on behalf of
the room remarketer, that person shall extend his or her annual
resale certificate in lieu of paving taxes on the amounts he or
she pays to the owner or operator for the accommodations. A room
remarketer may file with the department a single application for
registration. Such application for registration must identify
each county in which transient accommodations are located. Such
room remarketer must also file a separate re istration with each
county that self-administers any local transient accommodations
tax. A room remarketer may file a consolidated return as
provided in s. 212.11(1)(e).
Section 2. This act shall take effect July 1, 2010.
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Florida Senate - 2010 SB 156
By Senator Lynn
7-00024-10 2010156
1 A bill to be entitled
2 An act relating to the tax on transient rentals;
3 amending s. 212.03, F.S.; requiring that persons who
9 engage in certain business activities related to
5 transient rentals collect the tax; providing
6 definitions; authorizing the Department of Revenue to
7 adopt rules to exclude certain charges from the
8 definition of the terms "total rent" or ~~total
9 consideration"; requiring certain persons to report
10 and remit the tax on certain transient rentals;
11 providing requirements, procedures, and limitations;
12 requiring the Department of Revenue to provide for an
13 amnesty for certain unpaid taxes, penalties, and
19 interest; providing criteria for qualifying for the
15 amnesty; providing exclusions from application of the
16 amnesty; authorizing the department to adopt emergency
17 rules to implement the amnesty; providing for the
18 effective period of such rules; providing an effective
19 date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsections (8), (9), and (10) are added to
24 section 212.03, Florida Statutes, to read:
25 212.03 Transient rentals tax; rate, procedure, enforcement,
26 exemptions.-
27 (8) For purposes of this section, ss. 125.0109, 125.0108,
28 and 212.0305, and chap ter 67-930, Laws of Florida as amended
29 the business of rentin g, leasin letting or rantin a license
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SB 156
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30 to use transient rental accommodations includes any activity in
31 which a person offers information about the availability of
32 accommodations to a customer, arranges for the customer's
33 occupancy of the accommodations, establishes the total rent the
34 customer pays for the accommodations, or collects the rental
35 payments from the customer.
36 (9)(a) The terms "total rent" as used in this section,
37 "total consideration" as used in ss. 125.0109 and 125.0108,
38 "consideration" as used in s. 212.0305, and "rent" as used in
39 chapter 67-930, Laws of Florida, as amended, have the same
40 meaning and include:
91 1. The total amount a customer pays for the right to occupy
42 a transient accommodation.
93 2. Charges that must be paid as a condition of the right of
94 occupancy, except for mandatory fees imposed for the
45 availability of communications services.
96 3. Charges paid by a customer to the person collectin the
47 rent or consideration as a condition of the ri ht of occupancy
98 even if the charges are separately stated or are for tan ible
99 .personal property or services provided by a third party.
50 9. Charges for the use of tangible personal propert or
51 services as a condition of the ri ht of occupancy even if
52 separately stated.
53 (b) Notwithstanding para raph (a) the department may ado t
54 rules that exclude separately stated charges for tan ible
55 personal property and services from the definition of total rent
56 or total consideration.
57 (10) Persons engaging in activities described in subsection
58 (8) shall register with the department and collect and remit
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Florida Senate - 2010 SB 156
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59 taxes on the total rent charged to their customers, unless the
60 registered owners or operators of the accommodations agree in
61 writing to report and remit taxes on their behalf. Any written
62 agreement must require the person collecting the rent to report
63 total taxable sales and taxes due and pay the taxes collected to
69 the owner or operator by the last day of the month in which the
65 customer pays the rent or the last day of the month in which the
66 customer completes the occupancy of the accommodation. The owner
67 or operator shall report and remit the taxes along with the
68 owner or operator's return, which is due in the month followin
69 the month in which the taxes are paid to the owner or operator.
70 The owner or operator is not liable for any tax, penalty, or
71 interest due as a result of the failure of the person who
72 arranged the occupancy and collected the rent to accurately
73 report and remit the taxes imposed by this section or by s.
74 125.0104, s. 125.0108, or s. 212.0305, or s. 2 of chapter 67-
75 930, Laws of Florida, as amended. If the owner or operator does
76 not agree to report and remit taxes on behalf of the person who
77 rents the accommodations as provided in subsection (8) that
78 person shall extend his or her annual resale certificate in lieu
79 of paying taxes on the amounts he or she pays to the owner or
80 operator for the accommodations. A person enga ed in the
81 activities described in subsection (8) may file with the
82 department a single application for registration. Such
83 application for registration must identify each county in which
89 transient accommodations are located. Such person must also file
85 a separate registration with each county that self-administers
86 any local transient accommodations tax. A person en a ed in the
87 activities described in subsection (8) may file a consolidated
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Florida Senate - 2010 SB 156
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88 return as provided in s. 212.11(1)(e).
89 Section 2. (1) The Department of Revenue shall provide for
90 an amnesty for unpaid taxes, penalties, and interest imposed
91 under chapter 125 or chapter 212, Florida Statutes, or chapter
92 67-930, Laws of Florida, as amended, on transient rentals if:
93 (a) The rentals subject to amnesty were made prior to July
94 1, 2010.
95 (b) The rental payments were collected by persons who are
96 not owners, operators, or managers of the transient rental
97 facilities or their agents.
98 (c) The person who collected the rental payments re isters
99 with the department and any applicable local jurisdictions to
100 may taxes on transient rentals on or before October 1, 2010.
101 (d) The person who collected the rental payments applies
102 for amnesty by October 1, 2010, pursuant to rules of the
103 department.
104 (2)(a) The amnesty is not available for taxes penalties
105 or interest assessed if the assessment is final and has not been
106 timely challenged, or for any taxes penalties or interest that
107 have been paid to the department or other 'urisdiction unless
108 the payment is the subject of an assessment that is not final or
109 that has been timely challenged.
110 (b) The. amnesty is not available for tax billed to or
111 collected from the consumer who pays for occupancy of the
112 transient rental facility. The amnesty applies however to such
113 amounts to the extent that the person who collected the rental
119 payments documents that such taxes were remitted to the owner or
115 operator of the transient rental facility.
116 (3) The Department of Revenue may adopt emer ency rules to
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7-00024-10 2010156
implement the provisions of this act. Such rules may provide
forms and procedures for applying for amnesty, for reporting the
rentals for which amnesty is sought, and for ensuring the
applicant's ongoing commitment to registration, collection, and
remittance of the taxes imposed by state law on transient
rentals. Notwithstanding any other provision of law, the
emergency rules shall remain effective until 6 months after the
date of adoption of the rule or the date of final resolution of
all amnesty applications filed pursuant to this section,
whichever occurs later. These rules may be renewed during the
pendency of procedures to adopt rules addressing the subiect of
the emergency rules.
Section 3. This act shall take effect July 1, 2010.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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HB 335 2010
A bill to be entitled
An act relating to the tax on transient rentals; amending
s. 212.03, F.S.; expanding the description of certain
business activities relating to transient rental
accommodations that are subject to certain transient
rental taxation requirements; providing definitions;
authorizing the Department of Revenue to adopt rules;
requiring certain persons to register with the department
and report and remit the tax on certain transient rentals;
providing requirements, procedures, and limitations;
requiring the Department of Revenue to provide for an
amnesty for certain unpaid taxes, penalties, and interest;
providing criteria for qualifying for the amnesty;
providing exclusions from application of the amnesty;
authorizing the department to adopt emergency rules to
implement the amnesty; providing for the effective period
of such rules; providing an effective date.
Be It Enacted by the Legislature of the State of Florida:
Section 1. Subsections (8), (9), and (10) are added to
section 212.03, Florida Statutes, to read:
212.03 Transient rentals tax; rate, procedure,
enforcement, exemptions.--
(8) For purposes of this section, ss. 125.0104 125.0108
and 212.0305, and chapter 67-930, Laws of Florida, as amended,
the business of renting leasing lettin or rantin a license
to use transient rental accommodations includes any activity in
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 335
2010
29 which a person offers information about the availability of
30 accommodations to a customer, arranges for the customer's
31 occupancy of the accommodations, establishes the total rent the
32 customer will pay for the accommodations, or collects the rental
33 payments from the customer.
34 (9)(a) The terms "total rent" as used in this section,
35 "total consideration" as used in ss. 125.0109 and 125.0108,
36 "consideration" as used in s. 212.0305, and "rent" as used in
37 chapter 67-930, Laws of Florida, as amended, have the same
38 meaning and include:
39 1. The total amount a customer pays for the right to
90 occupy a transient rental accommodation.
91 2. Charges that must be paid as a condition of the ri ht
42 of occupancy, except for mandatory fees imposed for the
43 availability of communications services.
99 3. Charges paid by a customer to the person collectinq the
95 rent or consideration as a condition of the ri ht of occupancy
46 even if the charges are separately stated or are for tan ible
47 personal property or services provided by a third party.
48 4. Charges for the use of tan ible personal pro erty or
99 services as a condition of the right of occupancy, even if
50 separately stated.
51 (b) Notwithstanding paragraph (a) the department may
52 adopt rules that exclude separately stated char es for tangible
53 personal property and services from the definition of total rent
54 or total consideration.
55 (10) Each person engaging in activities described in
56 subsection (8) shall register with the department and collect
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HB 335 2010
57 and remit taxes on the total rent charged to their customers,
58 unless the registered owners or operators of the accommodations
59 agree in writing to report and remit taxes on such person's
60 behalf. Any written agreement must require the person collecting
61 the rent to report total taxable sales and taxes due and pay the
62 taxes collected to the owner or operator by the last day of the
63 month in which the customer pays the rent or the last day of the
69 month in which the customer completes the occupancy of the
65 accommodation. The owner or operator shall report and remit the
66 taxes together with the owner's or operator's return, which is
67 due in the month following the month in which the taxes are paid
68 to the owner or operator. The owner or operator is not liable
69 for any tax, penalty, or interest due as a result of the failure
70 of the person who arranged the occupancy and collected the rent
71 to accurately report and remit the taxes imposed by this
72 section, s. 125.0104, s. 125.0108, s. 212.0305, or s. 2 of
73 chapter 67-930, Laws of Florida, as amended. If the owner or
74 operator does not agree to report and remit taxes on behalf of
75 the person who rents the accommodations as provided in
76 subsection (8), that person shall extend his or her annual
77 resale certificate in lieu of pa in taxes on the amounts he or
78 she pays to the owner or operator for the accommodations. A
79 person engaged in the activities described in subsection (8) may
80 file with the department a single application for registration.
81 Such application for re istration must identify each county in
82 which are located transient accommodations at which the person
83 engages in the activities described in subsection (8). Such
84 person must also file a separate registration with each county
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HB 335 2010
85 that self-administers any local transient accommodations tax. A
86 person engaged in the activities described in subsection (8) ma
87 file a consolidated return as provided in s. 212.11(1)(e).
88 Section 2. (1) The Department of Revenue shall provide
89 for an amnesty for unpaid taxes, penalties, and interest imposed
90 under chapter 125 or chapter 212, Florida Statutes, or chapter
91 67-930, Laws of Florida, as amended, on transient rentals if:
92 (a) The rentals subject to the amnesty were made prior to
93 July 1, 2010.
99 (b) The rental payments were collected by persons who are
95 not owners, operators, or managers of the transient rental
96 facilities or their agents.
97 (c) The person who collected the rental payments registers
98 with the department and any applicable local jurisdictions to
99 pay taxes on transient rentals on or before October 1, 2010.
100 (d) The person who collected the rental payments applies
101 for amnesty by October 1, 2010, pursuant to rules of the
102 department.
103 (2)(a) The amnesty does not apply to any taxes, penalties
104 or interest assessed if the assessment is final and has not been
105 timely challenged, or for any taxes, penalties, or interest that
106 have been paid to the department or other jurisdiction unless
107 the payment is the subject of an assessment that is not final or
108 that has been timely challenged.
109 (b) The amnesty does not apply to any tax billed to or
110 collected from the consumer who pays for occupancy of the
111 transient rental facility. The amnesty applies, however to such
112 amounts to the extent that the person who collected the rental
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2010
113 payments documents that such taxes were remitted to the owner or
119 operator of the transient rental facility.
115 (3) The Department of Revenue may adopt emergency rules to
116 implement the provisions of this act. Such rules may provide
117 forms and procedures for applying for the amnesty, for reporting
118 the rentals for which amnesty is sought, and for ensuring the
119 applicant's ongoing commitment to registration, collection, and
120 remittance of the taxes imposed by state law on transient
121 rentals. Notwithstanding any other provision of law, the
122 emergency rules shall remain effective until 6 months after the
123 date of adoption of the rule or the date of final resolution of
124 all amnesty applications filed pursuant to this section,
125 whichever occurs later. These rules may be renewed during the
126 pendency of procedures to adopt rules addressing the subject of
127 the emergency rules.
128 Section 3. This act shall take effect July 1, 2010.
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