OIG No. 21-36: Resort Tax Activities Summary 10-01-2020 thru 09-30-2021TO: FROM:
PROJECT
PERIOD:
Joseph M. Centorino, Inspector General
October 4, 2021
Honorable Mayor and Members of the City Commission
Joseph M. Centorino, Inspector General
Resort Tax Audit Activities Summary
OIG No. 21-36 April 1, 2021 through September 30, 2021
The Office of the Inspector General's Audit Division includes four Resort Tax Auditors who verify compliance by registered taxpayer businesses with the City Code's Resort Tax provisions. They
conduct audits of annual filers, e.g., apartment buildings, that typically remit little or no resort taxes
to the City due to the frequency of exemptions for continuous residencies exceeding six months, and monthly filers, e.g., hotels, nightclubs and restaurants, which have frequent daily transactions for which resort taxes are due to the City. Annual filers are required to file once per year for the
period of May through April by May 20th {adjusted for weekends and holidays), while monthly filers must file each month prior to or on the twentieth of the following month (adjusted for weekends and holidays). The objective of these audits is to determine whether registered taxpayers have
accurately reported their revenues and timely remitted any taxes due.
The Finance Department determined that there were 3,934 active Resort Tax accounts as of September 27, 2021, which was comprised of 947 annual filers and 2,987 monthly filers. The
number of monthly accounts has increased significantly due to a rise in short-term rentals.
As the annual filers are expected to remit a much smaller amount in resort taxes, the OIG is
primarily focused on conducting audits of monthly filers. The audits of annual filers that are
performed concentrate on determining whether tested apartment building tenants satisfy the requirement of City Code Section 102-308(3), that there be a continuous length of residency for
longer than six months to be qualify for exemption from the resort tax provisions.
Although the Office of the Inspector General determines the assessment (if any) based on its
audit, it is not involved thereafter in the collection phase, which is conducted following referral to the Finance Department, and may lead to adjustment, appeal, settlement, or other resolution
involving other City processes and agencies. This process helps achieve a proper segregation
of duties between those performing the audit and those enforcing an assessment.
It should be noted that assessments are not always paid timely, and may result in liens being
imposed by the City on local properties owned by the delinquent taxpayers or corporate officers,
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