Resolution 2021-31559 RESOLUTION NO: 2021-31559
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, PURSUANT TO THE CITY'S DECLARATION OF A
STATE OF EMERGENCY IN RESPONSE TO THE COVID-19 PANDEMIC,
PRORATING THOSE PORTIONS OF THE FISCAL YEAR 2021
SUPPLEMENTAL BUSINESS TAX RECEIPT ("BTR") FEES RELATING TO
BTR CATEGORIES INVOLVING THE SALE AND SERVICE OF ALCOHOLIC
BEVERAGES AFTER MIDNIGHT (THE "AFTER MIDNIGHT BTR
CATEGORIES"), TO PROVIDE THAT FEES FOR THE AFTER MIDNIGHT BTR
CATEGORIES SHALL NOT APPLY FOR THE PERIOD OF TIME IN FY2021
DURING WHICH THE SALE AND SERVICE OF ALCOHOLIC BEVERAGES IS
PROHIBITED DUE TO MIAMI-DADE COUNTY'S IMPOSITION OF A CURFEW.
WHEREAS, the Coronavirus Disease 2019 ("Covid-19") is an acute respiratory illness
caused by the SARS-CoV-2 virus which can spread rapidly from person to person and cause
serious illness or death, and constitutes a clear and present threat to the health, life, safety and
welfare of the people of the City of Miami Beach; and
WHEREAS, on March 9, 2020, Governor Ron DeSantis issued Executive Order 20-52,
which declared a State of Emergency for the entire State of Florida as a result of Covid-19; and
WHEREAS, on March 11, 2020, the World Health Organization declared the rapidly
spreading Covid-19 outbreak a global pandemic; and
WHEREAS, on March '12, 2020, Miami-Dade County Mayor Carlos Gimenez declared a
State of Emergency throughout Miami-Dade County due to the threats associated with Covid-19;
and
WHEREAS, on March 12, 2020, the former City Manager, Jimmy L. Morales, declared a
local State of Emergency for the City of Miami Beach (the"City"), as Covid-19 posed a health risk
to the City's residents and visitors; and
WHEREAS, subsequently, both Miami-Dade County (the "County") and the City issued
various Emergency Orders temporarily closing public and private facilities, including the
temporary closure of all non-essential retail and commercial establishments and the closure of all
restaurants for in-person dining; and
WHEREAS, Miami-Dade County has also imposed a curfew, applicable to all incorporated
and unincorporated areas of the County, which presently prohibits persons (with limited
exceptions)from being out after Midnight; and
WHEREAS, the foregoing measures have greatly limited economic activity in the City of
Miami Beach, and continue to adversely impact City businesses; and
WHEREAS, the path to continuing the re-opening and viability of businesses in the City
must balance business operation and economic recovery while still protecting the public's health,
safety and welfare; and
WHEREAS, the County's imposition of a Midnight curfew has diminished the ability of
businesses with supplemental business tax receipts ("BTRs")for the categories of"Midnight to 2
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a.m. Alcohol" and "Midnight to 5 a.m. Alcohol"to generate additional revenue; and
WHEREAS, it is currently unknown when the current Midnight curfew will be lifted and
allow businesses within these supplemental BTR categories to resume the sale and service of
alcoholic beverages beyond Midnight; and
WHEREAS, in an effort to mitigate the economic impacts of the Covid-19 Pandemic on
such businesses, the Mayor and City Commission desire to prorate the annual BTR fees for the
categories of"Midnight to 2 a.m. Alcohol" and "Midnight to 5 a.m. Alcohol" for FY2021 (the "After
Midnight BTR Categories"); and
WHEREAS, for those businesses that have already paid all (or a portion of) their Fiscal
Year 2021 BTR fees for the After Midnight BTR Categories,the City will provide a prorated refund
to the business based upon the date that the curfew is lifted. For example, if the curfew is lifted
and such businesses may sell and serve alcoholic beverages after Midnight commencing on
February 1, 2021, then a business would receive a refund equal to four(4) months' worth of the
FY2021 BTR fees paid for the After Midnight BTR Categories; and
WHEREAS, in the event that such businesses are not allowed to sell and serve alcoholic
beverages after Midnight by the end of FY2021 (September 30, 2021), then the entire portion of
the BTR fee paid for the After Midnight BTR Categories will be refunded; and
WHEREAS,with respect to those businesses that have not yet paid the FY2021 BTR fees
for the After Midnight BTR Categories, those businesses may contact the City once the curfew
restrictions in applicable Emergency Orders are lifted, in order to activate their BTR for the After
Midnight BTR Categories at a prorated amount, based upon the remaining period of time in
FY2021 during which the businesses may lawfully sell and serve alcoholic beverages after
midnight; and
WHEREAS, after discussion at the Finance and Economic Resiliency Committee
("FERC")meeting on December 18, 2020, the FERC favorably recommended that the Mayor and
City Commission adopt this Resolution at the January 13, 2021 City Commission meeting.
NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, pursuant to the City's Declaration
of a State of Emergency in response to the COVID-19 pandemic, hereby prorate those portions
of the Fiscal Year 2021 supplemental business tax receipt("BTR")fees relating to BTR categories
involving the sale and service of alcoholic beverages after midnight (the "After Midnight BTR
categories"), to provide that fees for the After Midnight BTR Categories shall not apply for the
period of time in FY2021 during which the sale and service of alcoholic beverages is prohibited
due to Miami-Dade County's imposition of a curfew, as more fully set forth herein.
PASSED and ADOPTED this 13 day of v V9Mr`' 2021.
ATTEST:
Dan Gelber, Mayor• APPROVED AS TO
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul J.Aguila, Interim City Manager
DATE: January 13,2021
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, PRORATING THOSE PORTIONS OF THE
BUSINESS TAX RECEIPT FEES, PERTAINING TO THE SALE AND
SERVICE OF ALCOHOLIC BEVERAGES BEYOND MIDNIGHT, PAID BY
VARIOUS BUSINESS ESTABLISHMENTS FOR THE PERIOD OF TIME
COMMENCING OCTOBER 1, 2020 THROUGH SEPTEMBER 30, 2021,
PURSUANT THE CITY'S DECLARATION OF A STATE OF EMERGENCY IN
RESPONSE TO THE COVID-19 PANDEMIC
BACKGROUND/HISTORY
This item was referred to the Finance & Economic Resiliency Committee (FERC) at the
November 18, 2020 City Commission meeting by Vice Mayor Meiner. The purpose of the item
is to discuss the potential pro-ration of FY 2021 BTR fees for businesses serving alcohol from
midnight to 2 am or midnight to 5 am due to the mandatory midnight curfew currently in effect in
response to the COVID-19 pandemic. The FERC unanimously recommended the item to the
full City Commission on December 18, 2020.
ANALYSIS
BTR's are issued annually in accordance with Florida Statutes Chapter 205, as well as, locally
governed by Article V, Section 102 of the Code of the City of Miami Beach. BTR's typically
generate approximately$5 million a year of revenue to the General Fund.
BTR's are modular in that businesses that wish to serve alcohol from midnight to 2 am or from
midnight to 5 am are required to obtain an additional category to their BTR. The category for
midnight to 2 am costs $1,457 and the category for midnight to 5 am costs $4,847. As shown
in the table below, there are 129 current BTR's for the category for midnight to 2 am that
generate $187,953 and there are 175 current BTR's for the category for midnight to 5 am that
generate $848,225 of revenue to the City. The combined amount is $1,036,178 which
represents approximately 20% of total BTR revenues to the City.
Cory
Amount of Casts Total
BTRs
Midnight to 2 am Alcohol 129 $1,457 187,953
Midnight to 5 am Alcohol 175 $4,847 848,225
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Total $1,036,178
Chapter 205 states that Business Tax Receipts are due and payable on or before September
30th of each year and expire on September 30th of the succeeding year. Typically, the City
mails and emails its 7,000 businesses their annual renewal notices in the Summer preceding
the September 30th deadline.
The following changes have been made for the FY 2021 annual BTR renewal process to help
assist the City's businesses given the challenges from COVI D-19.
• Extending the FY 2020 BTR expiration dates from September 30, 2020 to December 31,
2020 (providing businesses an additional three months of economic recovery).
• Providing an option for businesses to split the FY 2021 BTR renewal from one payment
to two payments and extending the due dates.
• Payment 1 due: December 31, 2020 (half of the renewal fee)
• Payment 2 due: March 31, 2021 (half of the renewal fee)
Staff has surveyed other municipalities regarding any changes that have been implemented to
assist businesses affected by the COVI D-19 emergency measures. The results are as
follows:
• Miami: No extensions and/or refunds. BTRs not paid by September 30th, 2020 are
subject to penalties.
• Hialeah: Extended the due date until October 31st, 2020. Gave businesses one extra
month past the September 30th, 2020 deadline to pay their FY 2021 tax in full. Anything
paid after the one-month extension is subject to late penalties.
• Fort Lauderdale: Extended the due date by one week. Gave businesses one extra week
past the September 30th, 2020 deadline to pay their FY 2021 tax in full. Anything paid
after the one-week extension is subject to late penalties.
• Hollywood: No extensions and/or refunds. BTRs not paid by September 30th, 2020 are
subject to penalties.
• Orlando: Extended the due date by two weeks. Gave businesses two extra weeks past
the September 30th, 2020 deadline to pay their FY 2021 tax in full. Anything paid after the
two-week extension is subject to late penalties.
Given that many non-essential businesses experienced challenges from COVID-19 in FY
2020, the Administration does not recommend making any credits or refunds for the last fiscal
year. In FY 2021, however, most businesses are operating under Stage 3 except those which
normally serve alcohol after midnight due to the current midnight curfew. At this time, we are
currently about 3 months into the new fiscal year and it is not clear when the midnight curfew
may be lifted or if it would change to 2 am or some other time before 5 am. If the City
Commission wishes to provide relief to businesses which would normally pay for the additional
BTR categories to serve alcohol after midnight, the Administration recommends the following:
• For businesses that have already paid all or 50% of their BTR per the billing deadlines,
the City would send a pro-rated refund to the business based on the date that the
emergency orders affecting their operations is lifted.For example, if businesses were
allowed to operate after midnight starting on February 1, 2021 then a business would
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receive a refund for 4 months of the fiscal year. In the unlikely event that businesses are
not allowed to operate after midnight by the end of the fiscal year, the entire applicable
portion of the BTR bill would be refunded.
• For businesses that choose to not pay for the portion of their BTR allowing them to serve
alcohol after midnight, they would need to contact the City once the emergency orders
allow them to operate to activate that portion of their BTR at a pro-rated rate through the
end of the fiscal year to avoid code compliance issues once they begin to operate after
midnight.
The fiscal impact of this proposed measure is difficult to quantify given the uncertainty regarding
the length of time the current curfew will be in place. Given that a third of the fiscal year has
already elapsed, the minimum amount of lost revenue would be approximately $250,000 and
could be as high as approximately$1 million if the midnight curfew is in place through the end of
the fiscal year(September 30th).
SUPPORTING SURVEY DATA
Based on the 2019 Community Satisfaction Survey, 59.9% of businesses indicated they would
definitely/probably recommend the City of Miami Beach as a place to run a business.
CONCLUSION
The City of Miami Beach is already providing more relief related to its BTR process for local
businesses than any other city surveyed. If the City Commission wishes to provide relief to
businesses which would normally pay for the additional BTR categories to serve alcohol after
midnight, the Administration recommends that for businesses that have already paid all or 50%
of their BTR per the billing deadlines, the City would send a pro-rated refund to the business
based on the date that the emergency orders affecting their operations is lifted. For businesses
that choose to not pay for the portion of their BTR allowing them to serve alcohol after midnight,
they would need to contact the City once the emergency orders allow them to operate to
activate that portion of their BTR at a pro-rated rate through the end of the fiscal year to avoid
code compliance issues.
Applicable Area
Not Applicable
Is this a"Residents Right Does this item utilize G.O.
to Know" item,pursuant to Bond Funds?
City Code Section 2-14?
No No
Legislative Tracking
Finance
Sponsor
Vice-Mayor Steven Meiner
ATTACHMENTS:
Description
o Resolution
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