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93-2847 Ordinance ORDINANCE NO. 93-2847 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING SECBONS 41-47, 41-49, 41-50, 41-5!, 41-54, 41- 56,41-58,41-59 OF CHAPTER 41, ARTICLE V OF THE CODE OF THE CITY OF MIAMI BEACH RELATING TO RESORT TAX; CLARIFYING THE BASIS FOR EXEMPTION; PROVIDING FOR INCREASES IN THE REGISTRATION FEE, LATE PAYMENT INTEREST AND PENALTY CHARGES; ADDING AN ADMINISTRATIVE FEE FOR DISHONORED CHECKS, AND A LATE REPORTING FEE; PROVIDING FOR A LIMIT IN THE OPERATOR'S COLLECTION CREDIT; EXPANDING PROCEDURES FOR COLLECTION, ENFORCEMENT, RECORDKEEPING, AND AUDITING OF THE TAX; PROVIDING FOR REPEALER; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION UF THE CITY OF MIAMI BEACH, FLORIDA: SECTION l. Section 41-47 of the Coue of the City of Miami Beach is hereby amended to read as follows: No tax shall be imposed upon: (a) Federal, state or city governments, or any agency thereof. (b) Any nonprofit religious, nonprofit educational or nonprofit charitable institutions when engaged in carrying on the customary nonprofit religious, nonprofit educational or nonprofit charitable activities. (c) No tax shall be imposed on any rents paid by a permanent resident on his permanent place of abode, provided that no permanent resiuent shall be permitted to have more than one exemption during the same period of time. No tax shall be imposed -tffi un)' Icuse on any rents paid by a lessee, or the individwtl OCcu~~llnt with a w'.itter. lease for a term longer than eleven months provided that lessee, or the individual occupant authorized by the lease to occupy the premises, actually occupies the premises on a continuous basis for longer than eleven months. Tax shall be imposed on any rents paid by a lessee or individual occupant during the first eleven months of the occupancy term unless there is a written lease for a period longer than eleven months. and provided that lessee. or the individual occupant authorized by the lease to occupy the premises. actually occupies the premises on .a continuous basis for longer than eleven months. (d) School lunches served to students and teachers; all hospital meals ancI rooms. (e) All premises and all transactions exempted under the provisions of section 212.03 Florida Statute~;, 1965. (f) No tax shall be paid on any transaction involving rent or sales price of less than fifty cents. SECTION 2. Section 41-49 of the Code of the City of Miami Beach is hereby amended to read as follows: Within thirty days after the effective date of this articie, or within fifteen days after commencing business, whichever is later, each operator of any hotel, motel, rooming house, apartment house or restaurant shall register such hotel, motel, rooming house, apartment house or restaurant with the City finance director and obtain from him a "Resort Tax Registration Certificate" to be at all times posted in a conspiclIolls place on the premises. Such certificate shall, among other things, state the following: (1) The name of the operator; (2) The address of the hotel, motel, rooming house, apartment house or restaurant; (3) The date upon which the certificate was issued; (4) This "Resort Tax Registration Certificate" signifies that the person named on the face hereof has fulfilled the requirements of the Resort Tax Ordinance by registering with the Finance Director for the purpose of collecting from occupants or guests the Resort Tax and remitting said tax to the Finance Director. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel, motel, rooming house, apartment house or restaurant without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department, or office of this City. This certificate does not constitute a permit. The Operator shall pay a registration fee of -6fte twenty-five ($25.00) dollar.s to the finance director at the time of registration. Operators which fail or refuse to reiister for resort tax may be required to pay a $100.00 re~istration fee. rather than $25.00. when they are compelled to reiister. This registration certificate shall not be assignable or transferable and each new operator shall be required to obtain a new registration certificate. SECTION 3. Section 41-50 of the Code of the City of Miami Beach is hereby amended to read as follows: J..a.) The person or entity receivin~ the consideration for such sales. rental or lease shall receive. account for. and remit the tax to the city finance director in accordance with the followin~ procedures: ill Each operator shall, on or before the twentieth day of the month following the close of each calendar month or at the close of any longer reporting period which may be established by the finance director with the approval of the city manager make a return to the finance director on forms provided by the finance director, of the total r~nts 0f sales prices charged and recdved and the amount of tax collected. The finance director may also require statistical information on the activities of the operator over the course of the reportin~ period. At the time the return is filed, the full amount of the tax collected shall be remitted to the finance director. The finance director may authorize a Quarterly return and payment when the tax remitted by the operator for the precedin~ Quarter did not exceed one-hundred dollars ($100.00). The finance director may with the approval of the city manager establish shorter reporting periods for any certificate holder if he deems it necessary in order to insure collection of the tax and he may require further information on the return. The city or its desiil1ated aient shall accept returns if postmarked on or before the 20th day of the month: if the 20th day falls on a Saturday. Sunday. or federal or state leial holiday. returns shall be accepted if postmarked on the next succeedini work day. Each operator shall file a return for each tax period even thouih no tax is due for such period. Incomplete or unsi~ned tax returns will be returned to the operator and considered delinquent if not properly completed and re-submitted timely. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this article shall be held in trust for the account of the city until payment thereof is made to the finance director. ill The same duties. privile~es. enforcement procedures and penalties imposed by Chapter 212. Florida Statutes. upon dealers in taniible property respectin~ the remission and collection of tax. the makini of returns. the keepini of books. records and accounts. and compliance with the rules of the Florida Department of Revenue in the administration of said chapter. to the extent that such provisions of said Florida Statutes and Department of Revenue re~lations are not in conflict with the provisions of this article. shall apply to and be bindinl: upon all persons and entities who are subject to the provisions of this ordinance. 2 ru For the purpose of this section, if an operator does not have adequate records of his sales or rentals, the city or its designated agent may, upon the basis of a test or sampling of the operator's available records or other information relating to the sales or rentals made by such operator. for a representative period, determine the proportion that taxable sales and rentals bear to total sales or total rentals. This section does not affect the duty of the operator to collect. or the liability of any guest. lessee or individual occupant to pay. and tax imposed by or pursuant to this article. ill If the records of the operator are adequate but voluminous in nature and substance. the city or its designated agent may statistically sample such records and project the audit findings derived therefrom over the entire audit period to determine the proportion that taxable sales amounts bear to total sales amounts. provided. the operator and the city have entered into an agreement which provides for the use of statistical sampling un(L12rojections and the me;Jns and methods to be used. The agreement shall be binding on the operator and the ~ ru The city is authorized to audit or inspect the records and accounts of such operators and correct by credit any overpayment of tax: and, in the event of a deficiency, an assessment shall be made and collected. No administrative finding of fact is necessary prior to the assessment of any tax deficiency. iill In the event any operator charged herein fails or refuses to make his records avail~lble for inspection so that no audit or examination has been made of the books and records of such operator or person. fails or refuses to register as an operator, or fails to make a report and pay the tax as provided by this chapter. or makes a grossly incorrect report, or makes a report that is false or fraudulent. then. in such event. it shall be the duty of the citv to make an assessment from an estimate based upon the best information then available to it for the taxable period of sales or rentals. together with interest. plus penalty. if such have accrued, as the case may be. Then the city shall proceed to collect slJch taxes. interest, and penalty on the basis of such assessme!lt, which ~hall be considered prima facie correct: and the burden to show the contrary shall rest with the operator. m In order to effectively provide for the collection of said tax by operators and for payment to the city, a person, which includes without limitation. a firm or corporation seeking to renew its annual business license pursuant to the provisions of Chapter 20 of the City Code and in addition to the requirements contained therein. shall provide to the Finance Director evidence of payment of all outstanding resort tax, penalties, interest. and other charges as a condition to reissuance or renewal of said business license. ill Dishonored checks will be charged a fee in the amount of either (I) the charge paid by the city to the bank returning the check plus an additional twenty- five percent (25%) of the bank charge for the city's administrative expenses. provided that the administrative fee shall not be less than five dollars ($5.00) or. (?) five percent (5%) of the amount of the check. whichever is greater. 3 SECTION 4. Section 41-50.1 of the Code of the City of Miami Beach is hereby amended to read as follows: Whenever any operator has been delinquent by more than te-A thirty days in the remittance of resort tax to the city as required by this article, the finance director may require said operator to escrow resort tax collections on a daily basis or such other basis as he deems appropriate through the use of a depository receipt system or escrow account through any national or state bank located in Dade County if he deems such requirement necessary to secure the payment of the tax. The finance director is authorized to promulgate ~;uch regulation~; a~; are nece~;sury to effectuate the provis:ons of thi~; section. Said regulation~; shall not be effective until approved by the city manager, filed with the city clerk, and notice of such promulgation ~;hall have been published once in a loc,1I ne'v'.'spaper of general circulation in the coullty SECTION 5. Section 41-51 of the Code of the City of Miami Beach is hereby amended to read as follows: (a) Original delinquency. Any operator who fails to remit any tax imposed by this article within the time required shall pay a penalty of -tfv.e ten percent of the alllount of the tax in addition to the amount of the tax. (b) Continued delinquency. Any operator who fails to remit the tax on or before the thirtieth day following the date on which the tax first became delinquent shall pay a second delinquency penalty of -tfv.e ten percent of the amount of the tax in addition to the amount of the tax and the -tfv.e ten percent penalty first imposed. An additional penalty of -tfv.e ten percent of the amount of the tax shall be paid for each additional thirty day period or part thereof during which the tax shall be delinquent, provided that the total penalty imposed by subsection (a) and this subsection shall not exceed t\venty five fifty percent of the amount of the tax. Said penalty shall he in addition to the tax and interest imposed by this article. (c) Fraud. If the finance director determines that the nonpayment of any tax due under this article is due to fraud, a penalty of t..vent)' five fifty per cent of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs (a) and (b) of this section. (d) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this article shall pay interest at the rate of one half of one percent per month, or fraction thereof, highest legal rate of interest permitted by law, on the amount of tax, exclusive of penalties, from the date on which the tax first became delinquent until paid. (e) Penalties melged with {(n. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. ill Reoot1ing Fee. Returns filed late where no tax is due will be charged a late reporting fee of $25.00 for the initial lateness plus $25.CJ for each additional 30 day period late up to a maximum of $500.00. 4 SECTION 6. Section 41-54 of the Code of the City of Miami Beach is hereby amended to read as follows: It shall be the duty of ever)' operutor to keep all records as may be necc;:;ury to determine the umoullt of tux due hereunder and :;hall preserve the :;ame for a period of three yeur:;. The finance director :;hall have the right to inspect such records at all rea:;onable times. Every operator upon whose premises the tax is levied hereunder shall have the duty to maintain adequate records to show gross collections from all rentals or sales and the amount of tax due and paid hereunder. It shall be the duty of every such person so charged with such duty moreover. to keep and preserve. for a period of 3 years. all iovoices andmher records of leases or sales under this article. and all such books. invoices and other records shall be open to examination at all reasonable hours to the Finance Director or his designated agent. SECTION 7. Section 41-56 of the Code of the City of Miami Beach is hereby amended to read as follows: For the purpc)se of compensating the operator as compensation for the keeping of prescribed records and the proper accounting and remitting of taxes by him, such operator shall be allowed two percent (2%) of amount on the first $5.000.00 of taxes due and accounted for and remitted to the city in the form of a deduction in submitting his report and paying the amount due by him, and the finance director shall allow the deduction of two percent of the amount of the tax to the person paying same for remitting the tax in the manner herein provided and for paying the amount due to be paid by him; provided, however, that the two percent allowance be limited to $100.00 and shall not be granted nor shall and any deduction be permitted where the tax is delinquent at the time of payment or where there is a manifest failure to maintain proper records or make proper prescribed reports. The Finance Director may reduce the operator's credit by 10% or $50.00. whichever is less. if taxpayer files an incomplete return. SECTION 8. Section 41-SK of the Code of the City of Miami Beach is hereby amended to read as follows: Any person, firm or corporation who shall violate or fail to comply with any of the provisions of this article., :;hall be puni:;hed by a fine of not more thun one thousand dollurs, or be imprisoned in the city juil for not more thun ninety days,or both, in the discretion of the court. Each day such violation shall exist shull con~;titutc u :;cpuratc violation. Any operator or other per:;on who fails or refuses to register as required herein or to furnish any return required to be made, or who fails or ref..ises to furnish a supplemental return or other data required by the finance director, or who renders a false or fraudulent return or claim, :;hall be guilty of a violation of this article, and shall he punishuble us aforesaid. Any person required to make, render, sign or verify any report or -e+a-i-m who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this article to be made, shall be guilty of a violation of this article..:.... and shull be punishable as aforesaid. Each day such violation shall exist shall constitute a separate violation. 5 Violators shall be cited with a notice of violation as provided in Chapter 98 of the City Code and shall he subiect to one of the following methods of enforcement / collection: ill Prosecution before one of the City's Special Masters as provided in Chapter 9B of the City Code, with penalties as set forth therein: or ih.) Prosecution in Dade County Court as provided in Miami Beach City Code Section 1-8 with penalties as set forth therein. Additionally. violators may be subject to the following: ill Proceedings to revoke/suspend the City Occupational License and/or the Certificate of Use for the husiness/premises involved with the violation as provided in Section 20-44 of the City Code: and/or ih.) Suit for injunctive relief to enjoin operation of the business in violation of this Chapter. SECTION 9. Section 41-59 of the Code of the City of Miami Beach is hereby amended to read as follows: If any sectioli, subsection, sentence, clause or phrase of this article is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this article. The city council commission hereby declares that it would have passed this article and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more sections, suhsections, sentences, clauses or phrases hereof be declared invalid or unconstitutional. SECTION 10. REPEALER. All Ordinances or parts of Ordinances in conflict herewith he and the same are herehy repealed. SECTION II. SEVERABI L1TY. If any article, section, subsection, clause, phrase or portion of this Ordinance is, for any reason, held invalid or unconstitutional hy any court of competent jurisdiction, such portion shall he deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Ordinance. SECTION 12. EFFECTIVE DATE. PASSED and ADOPTED this ~ MAYOR This Ordinance shall become effective on Jul~ ATTEST: 'iT. uA "Q ILM..o ~. C. Dv~_ CITY CLERK 1st reading 4/21/93 2nd reading 5/5/93 lB:me C: \ 92-93 \resortx FORM APPROVED lEGAk-m PT. .-) \ // 80 ....~, -"7.< (L77 Date ~ /~, / (,1 6 CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF MIAMI BEACH OFFICE OF THE CITY MANAGER TELEPHONE: (305) 873.7010 FAX: (305) 873-n82 COMMISSION MEMORANDUM NO. ~ ;J.. 7.-t}3 May 5, 1993 To: Mayor Seymour Gelber and Members of the City Commission From: Roger M. CarltO~ City Manager Subject: Ordinance Amending Section 41, the Resort Tax Code of the City of Miami Beach Recommendation The Administration recommends that the City Commission approve this Ordinance on second reading after a public hearing. . Backil'ound The Finance Committee of the City Commission has suggested various changes in the Resort Tax Code to enhance and improve the reporting and collection efforts of the City. These suggestions have been incorporated in the Ordinance presented for your consideration. These suggestions include clarification of the definition and reporting status of permanent residents; a change in the registration cost; amendments to the reporting requirements; amendments to the collection procedures in the event of non-payment or an assessment; and the forma 117.ation of the confidentiality of the information included on the return. Analysis The proposed amendments will grant the same powers for collection of the Resort Tax that are enjoyed by the Florida Department of Revenue in its collection of the Sales Tax. These powers will allow the City to not be left among the unsecured creditors and not be able to make collection of the funds collected from customers and held by the hotel, restaurant or bar for the City until due. This will substantially enhance the collection efforts of the City and should produce a positive impact on revenues produced from this tax. This amendment should result in an increase of 3% in our collections, or $225,000 which will be made available for tourism purposes. Additionally, the proposed changes will allow the City to collect statistical information which will be beneficial in dfweloping operating parameters for our hotel anj restaurant indu:;t:y. Conclusion The proposed amendments will update and modernize the procedures for the collection and remittance of the Resort Tax to the City and will enhance the revenues generated by this tax to the City. RMC/RJN/zg 8 AGENDA ITEM DATE R-3-C ,c;-5-93