2001-24579 RESO
RESOLUTION NO. 2001-24579
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY
ATTORNEY'S OFFICE TO REQUEST A FORMAL ADVISORY OPINION
FROM THE ATTORNEY GENERAL'S OFFICE RELATIVE TO SECTION
196.1997 OF THE FLORIDA STATUTES, ENTITLED" AD VALOREM TAX
EXEMPTIONS FOR HISTORIC PROPERTIES"; SPECIFICALLY
REQUESTING AN OPINION AS TO WHETHER A GOVERNMENTAL
ENTITY WHICH ADOPTS AN ORDINANCE PROVIDING FOR SUCH
EXEMPTIONS HAS THE DISCRETION TO DETERMINE THE
APPLICABILITY OF SAID EXEMPTION TO EITHER RESIDENTIAL
(SPECIFICALLY, IN THE CITY'S CASE, DETACHED SINGLE-FAMILY
RESIDENTIAL) OR COMMERCIAL PROPERTIES,
WHEREAS, the citizens of Florida amended the Florida Constitution, Article VII, Section
3(e), to authorize counties and municipalities to allow certain tax exemptions for historic properties;
and
WHEREAS, the Florida Legislature enacted Section 196.1997, Florida Statutes, to govern
the allowance of such exemptions; and
WHEREAS, Fla. Stat. S 196.1997, provides that the board of county commissioners of any
county or the governing authority of any municipality may adopt an ordinance to allow ad valorem
tax exemptions under Section 3, Article VII of the State Constitution, to historic properties if the
owners are engaging in the restoration, rehabilitation, or renovation of such properties in accordance
with guidelines established in the Statute; and
WHEREAS, as sponsored by Miami Beach Commissioner Nancy Liebman, the City
Attorney's Office and the Administration have been working on a proposed ordinance which,
pursuant to the requirements of Fla. Stat. SI96.1997, would allow for ad valorem tax exemptions to
qualifying historic properties in the City of Miami Beach; and
WHEREAS, following an initial economic impact study, the Administration has concluded
and would herein recommend that any proposed ordinance brought forward by the City at this time
be limited to the provision of said ad valorem tax exemption for historic properties to qualifying
detached single-family residential homes; and
WHEREAS, as currently written, Florida Stat. S 196.197 is not specific as to whether a
governmental entity adopting the aforestated ordinance to allow ad valorem tax exemptions for
historic properties has the discretion, in adopting such an ordinance, to determine whether to apply
the subject exemption to either residential or commercial properties; and
WHEREAS, accordingly, at its regular meeting on September 5, 2001, the Mayor and City
Commission requested that the City Attorney's Office obtain a formal advisory opinion from the
Attorney General's Office as to whether a governmental entity which adopts an ordinance providing
for such exemptions the discretion to determine the applicability of said exemption to either
residential (specifically, in the City's case, detached single-family residential) or commercial
properties.
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 herein authorize the City Attorney's Office to request a formal advisory opinion from
the Attorney General's Office relative to Section 196.1997 of the Florida Statutes, entitled "Ad
Valorem Tax Exemptions for Historic Properties"; specifically requesting an opinion as to whether
a governmental entity which adopts an ordinance providing for such exemptions the discretion to
determine the applicability of said exemption to either residential (specifically, in the City's case,
detached single-family residential) or commercial properties.
PASSED and ADOPTED this 5th
day of September, 2001.
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MAYOR
ATTEST:
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CITY CLERK
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OFFICE OF THE CITY ATTORNEY
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MURRAY H. DUBBIN
City Attorney
Telephone:
Telecopy:
(305) 673-7470
(305) 673-7002
September 15, 2001
Robert A. Butterworth
Attorney General, State of Florida
Department of Legal Affairs
The Capitol
Tallahassee, Florida 32399-1050
Re: May the governing body of a municipality which adopts an ordinance pursuant to
Section 196.1997, Florida Statutes, allowing ad valorem tax exemptions to historic
properties if the owners are engaging in the restoration, rehabilitation, or renovation
of such properties, limit the provision of said ad valorem tax exemption ordinance to
qualifying detached single-family residential homes?
Dear Mr. Butterworth:
Pursuant to Section 16.01(3) of the Florida Statutes, I hereby request a formal advisory
opinion from the Attorney General's Office relating to my official duties as Miami Beach City
Attorney with regard to the facts outlined below.
The Florida Constitution, Article VII, Section 3(e), authorizes counties and municipalities
to allow certain tax exemptions for historic properties. The allowance and procedures for such
exemptions are governed pursuant to Sections 196.1997 and 196.1998, respectively, of the Florida
Statutes. Pursuant to Section 196.1997, Florida Statutes, the board of county commissioners of any
county or the governing authority of any municipality may allow said ad valorem tax exemptions
to historic properties pursuant to the adoption of an ordinance.
Accordingly, the City of Miami Beach Attorney's Office and the City Administration have
been working on a proposed ordinance which, pursuant to the requirements of Section 196.1997,
Florida Statutes, would allow for ad valorem tax exemptions to qualifying historic properties in the
City of Miami Beach. A copy of the proposed ordinance is attached hereto and incorporated herein
as Exhibit "A". Following an initial economic impact study, the City Administration concluded that
the attached proposed ordinance be limited to the provision of ad valorem tax exemptions for historic
properties only to qualifying detached single-family residential homes. The underlying rationale for
this is to encourage the restoration, renovation, and rehabilitation of these properties, particularly
1700 Convention Center Drive - Fourth Floor - Miami Beach, Florida 33139
Robert A. Butterworth
Attorney General, State of Florida
September 15,2001
Page 2
given the proliferation of detached single-family homes within existing and proposed historic
districts in the City of Miami Beach.
As currently written, Section 196.1997, Florida Statutes, is silent as to whether a
governmental authority, in adopting an ordinance to allow ad valorem tax exemptions for qualifying
historic properties, has the discretion to determine whether to apply the subject exemption to either
residential ill commercial properties, or whether it must apply the exemption to both. As stated, as
a condition to adoption of its proposed ordinance, it is vital that the City of Miami Beach have the
option to being able to grant the exemption to either residential or commercial properties. As stated,
at this time, the proposed ordinance in Exhibit "A" only contemplates an exemption for detached
single-family homes.
Accordingly, I respectfully request an opinion on the following issue:
MAY THE GOVERNING BODY OF A MUNICIPALITY WHICH ADOPTS
AN ORDINANCE PURSUANT TO SECTION 196.1997, FLORIDA
STATUTES, ALLOWING AD VALOREM TAX EXEMPTIONS TO
HISTORIC PROPERTIES IF THE OWNERS ARE ENGAGING IN THE
RESTORATION, REHABILITATION, OR RENOVATION OF SUCH
PROPERTIES, LIMIT THE PROVISION OF SAID AD VALOREM TAX
EXEMPTION ORDINANCE TO QUALIFYING DETACHED SINGLE-
F AMIL Y RESIDENTIAL HOMES?
Should you require any additional information in order to render a formal advisory opinion
on the above stated issue, please do not hesitate to contact me at 305-673-7470.
Very truly yours,
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Attachment
OFFICE OF THE CITY ATTORNEY. 1700 CONVENTION CENTER DRIVE. MIAMI BEACH. FLORIDA 33'39
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ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING MIAMI BEACH CITY
CODE CHAPTER 102 ENTITLED "TAXATION" BY CREATING ARTICLE
VI THEREOF ENTITLED "HISTORIC PROPERTY-ADMINISTRATION
VALOREM TA,X BENEFITS", SECTION ------ THEREOF, AUTHORIZING
ADMINISTRATION VALOREM TAX EXEMPTIONS FOR HISTORIC
PROPERTIES; PROVIDING FOR SEVERABILITY; CODIFICATION;
REPEALER; AND AN EFFECTIVE DATE.
WHEREAS, the citizens of Florida amended the Florida Constitution, Article VII, Section
3(e), to authorize counties and municipalities to allow certain tax exemptions for historic properties;
and
WHEREAS, the Florida legislature enacted Section 196.1997 and 196.1998, Florida
Statutes, to govern the allowance of such exemptions; and
WHEREAS, the City Commission desires to create a partial Administration valorem tax
exemption for qualifying improvements of historic properties as a means to encourage more
restoration, renovation and rehabilitation of such properties and to stabilize and improve property
values in the City of Miami Beach.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Miami Beach Code Chapter 102 entitled "Taxation" is hereby amended via the
creation of Article VI thereof entitled "Historic Property -- Administration Valorem Tax Benefits",
Section _, to read as follows:
Article VI "Historic Property -- Administration Valorem Tax Benefits"
Section Administration Valorem tax exemptions for
historic properties.
(a) Scone ofta.'C exemptions. A method is herebv created for
the Citv Commission at its discretion. to allow tax exemptions for
the restoration. renovation. or rehabilitation of historic properties.
The exemotion shall applv to one hundred percent (100%) of the
increase in assessed value of all improvements to historic properties
which result from restoration. renovation. or rehabilitation made on
or after the effective date of this ordinance. The exemption ap1)lies
only to QualiJ:Yin!! sin!!le familv detached dwellin!!s. The exemption
applies onlv to ad valorem real propertY taxes levied bv the Citv of
Miami Beach. The exemption does not al1plv to taxes levied for the
pavment of bonds or to taxes authorized bv a vote of the electors
.
.
EXHIBIT A
pursuant to Section 91b) or Section 12. Article VII of the Florida
Constitution. The exemption does not apply to oersonal property.
The exemotion under this ordinance does not apolv to properties
within a community redevelooment area previouslv or hereafter
established pursuant to Part III of Chapter 163. Florida Statutes. bv
either the Board of Miami-Dade County Commissioners or the
!!ovemin!! body of anY city or other municipality within Miami-Dade
County.
Ib) Duration Q( tax exemDtions. Any exemption ~ranted
under this Section to a particular property shall be !!ranted on a one-
time only basis and shall remain in effect for a maximum often (10)
Years. The City Commission shall have the discretion to set a lesser
term if requested bv the propertY owner in its ori~inal application and
covenant. The term of the exemption shall be specified in the
resolution approvin!! the exemption. The duration of the exemption
as established in the resolution ~rantin~ the exemption shall continue
re!!ardless of any chan!!e in the authority of the City of Miami Beach
to grant such exemptions or any change in ownership of the property.
In order to retain an exemption. however. the historic character of the
property and improvements which aualified the propertY for an
exemption must be maintained in their historic state over the period
for which the exemption was !!ranted.
Ie) Eli'lible DrolJerties and imDrovements.
ill Property is QJlalified for an exemption under this
Section if:
W At the time the exemption is granted the
property is a sin~le family detached dwelling
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ill Is individually listed in the National
Register of Historic Places pursuant to
the National Historic Preservation Act
of 1966. as amended: or
ill Is a contributing propertv to a
national-register-listed district: or
ill Is desi!!nated as a historic propertv. or
as a contributin!! propertY to a historic
2
district. under the terms of a local
preservation ordinance: and
ill} The Miami Beach Historic Preservation Board
has certified to the City Commission that the
propertY for which an exemotion is requested
satisfies para~raph (A).
ill In order for an improvement to a historic property to aualifv
the property for an exemption. the imorovement must:
fAl Be substantiallv consistent with the United
States Secretarv of Interior's Standards for
Rehabilitation: and
ill} Be determined bv the Miami Beach Historic
Preservation Board to meet criteria established
in rules adopted bv the Board and the
Department of State.
(d) Avvlications. Anv person. firm. or cOl:poration that
desires an ad valorem tax exemption for the improvement of a
historic property must. in the year the exemotion is desired to take
effect. file with the Plannin~ and Zonin~ Department a written
aoolication on a form orescribed bv the Department of State. The
application must include the followine: information:
ill The name of the property owner and the location of the
historic property:
ill A description of the improvements to real propertY for which
an exemption is reauested and the date of commencement of
construction of such improvements:
ill Proof. to the satisfaction of the Miami Beach Historic
Preservation Board. that the propertY that is to be rehabilitated
or renovated is a historic property under this Section:
ill Proof. to the satisfaction of the Miami Beach Historic
Preservation Board. that the improvements to the propertv
will be consistent with the United States SecretarY of
Interior's Standards for Rehabilitation and will be made in
accordance with e:uidelines developed by the Department of
State:
3
ill Other information identified in apDropriate Department of
State re!lulations. or requested bv the Miami Beach Historic
Preservation Board: and
LQ} If the propertv is within the iurisdiction of the Miami Beach
Historic Preservation Board. a completed apDlication for a
certificated of appropriateness for the qualifying restoration.
renovation. or rehabilitation.
(e) Required covenant. To qualify for an exemption. the
mODertv owner must enter into a covenant or al!reement with the City
Commission for the term for which the exemption is l!ranted. The
form of the covenant or al!reement must be established bv the
Department of State and must require that the character of the
propertv. and the qualifyin~ improvements to the moperty. be
maintained during the period that the exemDtion is Ij!ranted. The
covenant or agreement shall be binding on the current propertv
owner. transferees. and their respective heirs successors. or assil!ns.
Violation of the covenant or aflreement results in the pro\)ertv owner
beinl! subiect to the pavment of the differences between the total
amount of taxes which would have been due in March in each of the
previous vears in which the covenant or aflreement was in effect had
the Dropertv not received the exemption and the total amount of taxes
actually paid in those vears. DIllS interest on the difference calculated
as provided in Section 2]2.12(3) of the Florida Statutes.
(0 Review QV Historic Preservation Board The Miami
Beach Historic Preservation Board. or its successor is desil!nated to
review ap\)lications for all tax exemDtions. The Miami Beach
Historic Preservation Board shall recommend that the City
Commission Ilrant or deny the exemption. Such reviews must be
conducted in accordance with the rules adopted bv the Department of
State. The recommendation. and the reasons therefore. must be
provided to the ~plicant and the City Commission before
consideration of the a,polication at an official meetinl! of the City
Commission.
(g) ADl1roval bv City Commission. A maioritv vote of the
City Commission shall be reouired to a,pprove a written application
for tax exemption. Such exemption shall take effect on the Januarv
1 followinl! substantial comDletion of the improvement. The City
Commission shall include the followin~ in the resolution approvinl!
the written application for exemption:
ill The name of the owner and the address of the historic
propertY for which the exemption is l!ranted.
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CITY OF MIAMI BEACH
OFFICE OF THE MAYOR & COMMISSION
MEMORANDUM
FROM:
NANCY LlEBMA
COMMISSIONER
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TO:
JORGE GONZALEZ
CITY MANAGER
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DATE:
August 28, 2001
RE:
HISTORIC TAX CREDIT
PleaSe place for discussion on the September 5th agenda a request for a State Attorney General
opinion to clarify whether the city can bifurcate the Florida State Statute which provides
qualifying properties in historic districts a one-time only tax exemption.
NUsI
Attachment
Agenda Item R ~ rJ
Date Cf-"5~O(
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PAGE 2
FINANCE & CITYWIDE PROJECTS COMMITTEE MEETING
JULY 11,2001
2. Discuss possible financial relief to the property owners and temmts affected by the construction
on Collins A venue
AcrION
The Committee recommended that financial relief to the property owners from City funds not be
pursued at this time.
Commissioner Garcia presented the item. Lawrence Levy. First Assistant City Attorney, made a presentation
of legal cases relevant to the proposal. There was discussion about setting a precedent with such action. The
City Attorney's Office cited legal precedence. which denied compensation for inconvenience.
3. Discussion of Historic Tax Credit for qualifying renovations to single family residential
properties.
ACTION
The Committe,e recommended that this matter be referred to the full commission.
Commissioner Liebman presented the item, which is an amendment to the City Code allowing for ad
valorem tax exemption for certain restoration, renovation or rehabilitation of single family residential
properties in historic districts.
Patricia Walker discussed the financial impact of this amendment at different levels of homeowner
investment The credit will. reduce the property valuation by the amount of the qualifying improvement
and the exemption will extend for a period not to exceed ten (10) years. The Committee also discussed
long term impact of enacting such a credit. The financial impact is expected to be minimal.
4. Discussion of proposed FY 2001-2002 funding for Miami Beach Garden Conservancy
Management of the Miami Beach Botanical Garden.
ACTION
The Committee recommended that the budget request be refined as part of the budget process
and that it reflect programming that is available for participation by all residents.
Patricia Walker presented financial information pertaining to the operation of the facility and
indicated that an agreement had been reached to recommend a contribution. of $200,000 from the City
with a 50% match from the Conservancy. The Conservancy has agreed to keep the facility open-
seven days a week.
10