Ordinance 93-2847ORDINANCE NO. 93-2847
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING SECTIONS 41-47, 41-49, 41-50, 41-51, 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, ANI) A LATE
REPORTING FEE; PROVIDING FOR A LIMIT IN THE OPERATOR'S
COLLECTION CREDIT; EXPANDING PROCEDURES FOR COLLECTION,
ENFORCEMENT, RECORDKEEPING, ANI) AUDITING OF THE TAX;
PROVIDING FOR REPEALER; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION (JF THE CITY OF MIAMI
BEACH, FLORIDA:
SECTION 1.
Section 41-47 of the Code 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 he imposed on any rents paid by a permanent resident on his
permanent place of abode, provided that no permanent resident shall be permitted to
have more than one exemption during the same period of time. No tax shall he imposed
any lease on any rents paid by a lessee, or the individual occupant with a written
lease tor 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 he 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 and
rooms.
(e) All premises and all transactions exempted under the provisions of section
212.03 Florida Statutes, 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 article, 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 he at all times posted in a conspicuous 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 eMe twenty-five ($25.00) dollar to the
finance director at the time of registration. Operators which fail or refuse to register for
resort tax may be required to pay a $100.00 registration fee, rather than $25.00, when
they are compelled to register.
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:
La) The person or entity receiving 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 following procedures:
(1) 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 rents 3r sales prices charged and received 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 reporting
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 preceding
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 designated
agent 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 legal holiday,
returns shall be accepted if postmarked on the next succeeding work day. Each
operator shall file a return for each tax period even though no tax is due for such
period. Incomplete or unsigned 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.
(2) The same duties, privileges. enforcement procedures and penalties
imposed by Chapter 212. Florida Statutes. upon dealers in tangible property
respecting the remission and collection of tax, the making of returns. the keeping
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 regulations
are not in conflict with the provisions of this article, shall apply to and be binding
upon all persons and entities who are subject to the provisions of this ordinance.
2
a 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 hasis of a test or sampling of the Operator's availahle records or other
information relating to the sales or rentals made by such operator. for a
representative period, determine the proportion that taxahle sales and rentals
hear 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.
1,4) 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 audi
period to determine the proportion that taxahle sales amounts hear to total sales
amounts. provided. the operator and the city have entered into an agreement
which provides for the use of statistical sampling and projections and the means
and methods to he used. The agreement shall he bind.ng on the operator and the
city.
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 he made and collected. No administrative
finding of fact is necessary prior to the assessment of any tax deficiency.
j.) In the event any operator charged herein fails or refuses to make his
records availahle for inspection so that no audit or examination has been made of
the hooks 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 he the duty of the city to make an assessment from an
estimate based upon the best information then availahle to it for the taxable
period of sales or rentals, together with interest, plus penalty if such have
accrued. as the case may he. Then the city shall proceed to collect such taxes
interest, and penalty on the hasis of such assessment, which shall he considered
prima facie correct: and the burden to show the contrary shall rest with the
(uerator.
.(7) 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.
Dishonored checks will be charged a fee in the amount of either (1) the
charge paid by the city to the hank returning the check plus an additional twenty-
five percent (25%) of the hank charge for the city's administrative expenses,
provided that the administrative fee shall not he Tess than five dollars ($5.00) or,
• (2) 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 thant 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 fina..ep dircetor is
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 -five ten percent of the
amount of the tax in addition to the amount of the tax.
(h) 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 dive ten percent of the amount of the tax in
addition to the amount of the tax and the -five ten percent penalty first imposed.
An additional penalty of five 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 filly percent of the amount of the tax. Said
penalty shall be 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 fifty per cent of the
amount of the tax shall he added thereto in addition to the penalties stated in
subparagraphs (a) and (h) 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 �.te of one i f f
' - - - , 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 merged with tax. Every penalty imposed and such interest as
accrues under the provisions of this section shall become a part of the tax herein
required to he paid.
ff) Reporting Fee. Returns filed late where no tax is due will be charged a late
reporting fee of $25.00 for the initial lateness plus $25.63 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:
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 invoices and other records of leases or sales under this
article, and all such hooks, invoices and other records shall he 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 purpose 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 he allowed two percent (2%) -4--affrottntt 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 he limited to $100.00
and shall not be granted nor shall and any deduction he 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 41-58 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, ,
• who fails or refuses to register as required herein or
to furnish any return required to he made, or who fails or refuses to furnish a
supplemental return or other data required by the finance director, or who renders a
false or fraudulent return or claim,
art or claim 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
he guilty of a violation of this article_
•
Each day such violation shall exist shall constitute a separate violation.
5
Violators shall he cited with a notice of violation as provided in Chapter 9B of
the City Code and shall he subject to one of the following methods of
enforcement/collection:
WI 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
(h) Prosecution in Dade County Court as provided in Miami Beach City Code
Section 1-8 with penalties as set forth therein.
Additionally, violators may he subject to the following:
(a) Proceedings to revoke/suspend the City Occupational License and/or the
Certificate of Use for the business/premises involved with the violation as provided in
Section 20-44 of the City Code: and/or
(h) 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 section, subsection, sentence, clause or phrase of this article is for any
reason held to he 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
ii -1 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, subsections, 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
hereby repealed.
SECTION 11. SEVERABILITY.
If any article, section, subsection, clause, phrase or portion of this Ordinance is,
for any reason, held invalid or unconstitutional by 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.
This Ordinance shall become effective on July 1, 1993.
PASSED and ADOPTED this 5th day of/May, 199,
ATTEST:
L
CITY CLERK
1st reading 4/21/93
2nd reading 5/5/93
IB:me
C:\92-93\resortx
6
MAYOR
FORM APPROVED
LE 'T
I3y�
Date // / " l3
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. a:7-93
To: Mayor Seymour Gelber and
Members of the City Commission
From: Roger M. Canto4)/(04A
City Manager
May 5, 1993
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.
Background
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 formalization 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 developing operating parameters
for our hotel and restaurant industry.
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
AGENDA
ITEM
DATE
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