RESOLUTION 89-19761 RESOLUTION NO. 89-19761
A RESOLUTION BY THE CITY COMMISSION
OF THE CITY OF MIAMI BEACH
AUTHORIZING THE MAYOR/CITY MANAGER
TO SIGN AN AGREEMENT WITH THE
FLORIDA LEAGUE OF CITIES, INC. TO
ACT AS A ""TAX COLLECTION" AGENCY FOR
RECOVERING DELINQUENT LICENSE FEES
FROM INSURANCE COMPANIES
WHEREAS, the City of Miami Beach desires to recover delinquent
license fees from insurance companies working within the City' s
limits; and
WHEREAS, the Florida League of Cities, Inc. provides a service
for collecting delinquent license fees from insurance companies;
and
WHEREAS, the terms of the agreement submitted by the Florida
League of Cities, Inc. and attached to this Resolution are
acceptable to the City Commission of the City of Miami Beach;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMSSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor/City Manager be
authorized to sign an Agreement between the City of Miami Beach and
the Florida League of Cities, Inc. for the League to act as the
"tax collection" agency for the City of Miami Beach in recovering
delinquent license fees from insurance companies operating in the
City of Miami Beach.
PASSED AND ADOPTED THIS 4th DAY OF October
ATTEST:
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CITY CLERK ►vYOR
APPROVED AS TO FORM:
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OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
COMMISSION MEMORANDUM NO. 5 ,)-4S2(
DATE: October 4 , 1989
TO: Mayor Alex Daou• • • 1
Members of t• City Comm' ioi ;
FROM: Rob W. Pa ,ins ?' ' ,
City Manager ArOPr
SUBJECT:
FLORIDA LEAGUE OF CITIES "TAX COLLECTION!' CONTRACTUAL
AGREEMENT
INFORMATION:
Approximately 175 cities have signed agreements with The
Florida League of Cities, Inc. authorizing the League to serve
as an agency to collect delinquent occupational license taxes
from insurance companies. The League researches records to
discover any companies that have operated in a city, within
a previous three year period, but have failed to pay the
proper license fees in accordiance with the city's ordinance.
Companies delinquent in license payments are contacted by the
League requesting payment of the license fee or information
substantiating that the license fee is not due. This
procedure not only permits the city to learn which companies
are operating within its boundaries and have not paid taxes
but also to recover lost revenue and place these company names
on city records for future collection. The League sends each
city a statement showing the names of companies submitting
delinquent payments along with 50% of the funds collected from
these companies. The League retains 50% of the funds
• recovered from the companies as its commission.- However, any
future collections from these delinquent companies are not
subject to the 50% commission fee. Some of the Dade County
cities participating in this "tax collecion" arrangement, with
the current amounts of revenue recovered are: Coral Gables
($17 , 387. 00) , Hialeah ($9, 450. 00) , Miami ($157 , 484 . 65) and
North Miami ($3 , 450. 00) .
The City Administration believes that entering into an
Agreement with the Florida League of Cities, Inc. will help
recover delinquent and escaped license fees resulting in a
valuable source of lost revenues.
FUNDING:
No funding on the part of the City of Miami Beach is
necessary. However, the League shall retain 50% of the amount
collected from delinquent and escaped license fees as a
commission.
RECOMMENDATION:
The Administration recommends that the City Commission
authorize the Mayor/City Manager to sign an Agreement with the
Florida League of Cities, Inc. for its collection -of
delinquent occupational license taxes from insurance
companies.
59
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F l/F1 League.CM AGENDA c .
ITEM _ — E.-- - -
DATE 04
AGREEMENT
STATE OF FLORIDA
COUNTY OF DADS
THIS AGREEMENT, made and entered into the 6th day of October
A.O. 1989 , between the FLORIDA LEAGUE OF CITIES, INC., a corporation not for profit of
Florida,State of with Its principal office in the City of Tallahassee, Florida, hereinafter called the "League,"
andCITY OF MIAMI BEACH, FLORIDA , a municipal corporation of the State of
Florida, hereinafter called the "City;
WITNESSETH: That for the consideration hereinafter set forth, the League and City agree that:
1. The League will make the necessary investigations and collect unpaid, escaped and delinquent
.privilege or occupational license taxes from corporations, firms or associations transacting any
insurance business in the City.
2. The City shall not incur any expense or liability in connection with such investigation and
collection except as hereinafter set forth.
3. The League, at its expense, will write all necessary letters and assume all other expenses incurred
in the collection of said license taxes,
4. Only such corporations, firms or associations obligated to pay such license taxes under State
Law or under any City Ordinance of the City shall be approached or investigated.
5. The League shall retain 50% of the amount collected for effecting the collection of such
delinquent and escaped privilege, or license, taxes and the balance of 50% of the gross amount
recovered shall be forwarded to the City periodically by statements to said City. The League
shall receive no commission or compensation for amounts collected in subsequent years on
voluntary payments or payments received from billings by the City from companies from
which the League has effected collection under this Agreement.
t During the term of this Agreement the City shall notify the League of any payments or
compromise settlements received by the City, of such escaped and delinquent license taxes
due from insurance corporations, firms or associations. If any license taxes collected under
this Agreement are paid directly to the City, the City shalt remit to the League the cornmi*
soon due it under this Agreement, or if sums due are forwarded to the League in the name of
the City, the League shall deduct its commission and remit to the City the sums due it under
this Agreement.
7. This Agreement shall remain in full force and effect until terminated by either partyu
giving at least nine (90) daysno • writing pon
•ninety tide in to the other party, and all collections re-
ceived during said ninety (90) day period shall be disbursed in accordance with the above
precisions of this Agreement.
IN WITNESS WHEREOF, the parties have hereunto caused their names to •
be affixed, this the be signed and their seats to
day and year first above written.
FLORIDA LEAGUE OF CITIES, INC., a cor-
poration not for profit of the State of Florida
BY
President
ATTEST:
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BY
ATTEST:
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FOR APPROVED
City Clerk
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Date l
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ORIGINAL
RESOLUTION NO. 89-19761
Authorizing the Mayor/City Manager to
sign an agreement with the Florida League
of Cities, Inc. to act as a "Tax
Collection" Agency for recovering delin-
quent license fees from insurance com-
panies.
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