2014-3846 Ordinance ORDINANCE NO. 2014-3846
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING THE.CODE OF THE
CITY OF MIAMI BEACH, FLORIDA, BY AMENDING CHAPTER 102
ENTITLED "TAXATION," BY AMENDING ARTICLE IV ENTITLED
"RESORT TAX," BY AMENDING DIVISION 4 ENTITLED "TAX," BY
AMENDING SECTION 102-314 ENTITLED "PENALTIES AND
INTEREST," BY AMENDING SUBSECTION (fl THEREOF AND
INCLUDING THE CORRESPONDING AMENDMENT TO APPENDIX
"A" THERTO, REGARDING THE ESTABLISHMENT OF A FIXED LATE
REPORTING PENALTY FOR ANNUAL RETURNS FILED LATE,
WHERE NO TAX IS. DUE; PROVIDING FOR CODIFICATION;
REPEALER; SEVERABILITY; AND AN EFFECTIVE DATE
WHEREAS, the City levies a three percent (3%) resort tax on the rent of every
occupancy of a room or rooms in any hotel, motel, rooming-house, or apartment house
in the City; and
WHEREAS, operators of the aforementioned establishments are responsible for
the collection and reporting of taxes collected at their premises; and
-- - WHEREAS,-this tax is imposed on any rents, paid by a lessee or occupant, for
rental periods shorter than six (6) months; and
WHEREAS, all taxes collected by operators are required to be held in trust for
the account of the City until payment thereof is made to the city; and
WHEREAS, each operator is required to file a return for each tax period, even
though no tax may be due; and
WHEREAS, operators that do not traditionally have rental periods shorter than
six months are required to file on an annual basis as opposed to a monthly return; and
WHEREAS; annual returns are due May 20th of each year for the preceding tax
period of May 1 st through April 30th; and
WHEREAS, the City currently assesses a late reporting penalty of$25 per month
for annual resort tax returns that are filed late and where no tax is due to the City; and
WHEREAS, these penalties are capped at $500.00 per return; and
WHEREAS, after reviewing the penalties in place, the City wishes to levy a more
appropriate penalty and accordingly update Subsection 102-314 (f), and Appendix A
thereto, of the City Code; and
WHEREAS, the City wishes to set the.late reporting penalty for annual resort tax
returns that are not timely filed and.where no tax is due to the City; and
WHEREAS, the Mayor and City Commission, at their February 12, 2014
meeting, approved the proposed Ordinance on first reading.
NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Section 102-314 (f) of the City Code, and the corresponding reference
in Appendix "A" thereto, are hereby amended as follows:
Sec. 102-314. Penalties and Interest
(f) Reporting fee. Returns filed late where no tax is due will be charged a late reporting
fee of$50.00, as specified in appendix A.
Section 2. Repealer.
All ordinances or parts of ordinances and all sections and parts of sections in conflict
herewith be and the same are hereby repealed.
Section 3. Codification.
It is the intention of the City Commission, and it is hereby ordained that the provisions of
this ordinance shall become and be made part of the Code of the City of Miami Beach as
amended; that the sections of this ordinance may be renumbered or relettered to
accomplish-such intention n;--and that the word "ordinance" may be changed--to -
"section" or other appropriate word.
Section 4. Severability.
If any section, subsection, clause or provision of this Ordinance is held invalid,
the remainder shall not be affected by such invalidity.
Section 5. Effective Date.
This Ordinance shall take effect ten (10) days following adoption.
PASSED and ADOPTED this .- day of MQr^C 2014.
MAYOR
ATTEST: F3
o APPROVED AS TO
CITY C ERK .�10
FORM & LANGUAGE
-1 &FOR EX TION
(Sponsored by C 1 s wcobRf =fie tt rn)
Attom Date
COMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Amending The Code Of
The City Of Miami Beach, Florida, By Amending Chapter 102 Entitled "Taxation," By Amending Article Iv Entitled
"Resort Tax," By Amending Division 4 Entitled "Tax," By Amending Section 102-314 Entitled "Penalties And
Interest," By Amending Subsection F Thereof Regarding The Establishment Of A Fixed Late Reporting Penalty
For Annual Returns Filed Late Where No Tax Is Due...
I
Key Intended Outcome Supported:
Make City more business friendly.
Supporting Data(Surveys, Environmental Scan,etc.):
87%of businesses rated Miami Beach as one of the best,above average,or averse places to run a business.
Item Summa /Recommendation:
The Administration recommends that the City Commission approve the item.
The City of Miami Beach levies a three percent resort tax on the rent of every occupancy of a room or rooms in
any hotel, motel, rooming-house, or apartment house in the city. Operators of the aforementioned establishments
are responsible for the collection and reporting of taxes collected at their premises.
This tax is imposed on any rents, paid by a lessee or occupant, for rental periods shorter than six months. All
taxes collected by operators are required to be held in trust for the account of the city until payment thereof is
--made to the city. Each operator is required to file a return for each tax period even though no tax may be due.
Operators that do not traditionally have rental periods shorter than six months are required to file on an annual
basis as opposed to filing a monthly return. Annual returns are due May 20th of each year for the preceding tax
period of May 1 st through April 30th.
The City currently assesses a late reporting penalty of$25 per month for annual resort tax returns that are filed
late and where no tax is due to the City. These penalties are capped at$500.00 per return.
Operators that have no resort-tax to-report and fail to file an annual return for several tax periods, may be
penalized up to$500 for each annual report that is not filed timely.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds: 1
2
3
4
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Patricia D.Walker, ext. 6461
Sign-Offs:
Department Director Chief Financial r City Manag r
GPE PDW JLM
T:\AGENDA\2014\March\Resort Tax Annual Returns Penalty—SUM.d
M 'AM IEAC SAGENDA ITEM � L
� SATE ,3 s
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of the Cit Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 5, 2014
SUBJECT: Resort Tax SECOND READING — PUBLIC HEARING
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF
MIAMI BEACH, FLORIDA, BY AMENDING CHAPTER 102 ENTITLED
"TAXATION," BY AMENDING ARTICLE IV ENTITLED "RESORT TAX," BY
AMENDING DIVISION 4 ENTITLED "TAX," BY AMENDING SECTION 102-
314 ENTITLED "PENALTIES AND INTEREST," BY AMENDING
SUBSECTION F THEREOF REGARDING THE ESTABLISHMENT OF A
FIXED LATE REPORTING PENALTY FOR ANNUAL RETURNS FILED LATE
WHERE NO TAX IS DUE; -PROVIDING FOR CODIFICATION; REPEALER;
SEVERABILITY; AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends adopting the proposed ordinance that was approved on
first reading during the February 12, 2014, City Commission meeting.
BACKGROUND
The City of Miami Beach levies a three percent resort tax on the rent of every occupancy
of a room or rooms in any hotel, motel, rooming-house, or apartment house in the city.
Operators of the aforementioned establishments are responsible for the collection and
reporting of taxes collected at their premises.
This tax is imposed on any rents, paid by a lessee or occupant, for rental periods shorter
than six months. All taxes collected by operators are required to be held in trust for the
account of the city until payment thereof is made to the city. Each operator is required to
file a return for each tax period even though no tax may be due.
Operators that do not traditionally have rental periods shorter than six months are
required to file on an annual basis as opposed to-filing a monthly return. Annual returns
are due May 20th of each year for the preceding tax period of May 1"through April 30tH
The City currently assesses a late reporting penalty of $25 per month for annual resort
tax returns that are filed late and where no tax is due to the City. These penalties are
capped at $500.00 per return.
Operators that have no resort tax to report and fail to file an annual return for several tax
periods, may be penalized up to $500 for each annual report that is not filed timely.
Commission Memorandum
Resort Tax
March 5, 2014 Page 2 of 2
Resort tax penalties are in place to encourage operators to file on a timely basis.
Penalties and interest charges are in effect to penalize operators that collect resort
taxes, but fail to remit payment to the City in a timely manner.
An unintended consequence of the penalties in place for operators is the large penalty
for annual filers with zero taxes to report. The Administration is recommending the City
Commission review the penalties in place and levy a more appropriate penalty for
offenses, and accordingly update Appendix A of the City Code. Administration is
recommending the late reporting penalty be set at $50 for each annual resort tax return
that is filed late and where no tax is due to the City.
FISCAL IMPACT
In accordance with Charter section 5.02, which requires that the "City of Miami Beach
shall consider the long-term economic impact (at least 5 years) of proposed legislative
actions," this shall confirm that the City Administration evaluated the long-term economic
impact (at least 5 years) of this proposed legislative action, and determined that there
will be no measurable impact on the City's budget.
There are currently 1,062 operators that report on annual basis. Penalties collected
from annual filers for the calendar year 2013 totaled $9,250.
CONCLUSION
The City Administration recommends that the Mayor and Commission adopt the
Ordinance.
JLM/PDW/GPE/MM
T:\AGENDA\2014\March\Resort Tax Annual Returns Penalty-MEMO 2nd Read.docx
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