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BIE - HOMELESS AND DOMESTIC VIOENCE TAX (1/6/2024)/\ALAAAt BEACH CNy of Miami Beach. ' 7Q(c nventior+ C erten Er ve Miar +i Beckh. Florida 33139, www.miamibeachfi.gov TO: Mayor Steven Meiner and Members of the City Commission FROM: Eric Carpenter, City Manager MEETING DATE: November 20, 2024 SUBJECT: BUSINESS IMPACT ESTIMATE Fee - AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, REPEALING ORDINANCE NO. 2023-4567, BY AMENDING CHAPTER 102 OF THE MIAMI BEACH CITY CODE, ENTITLED "TAXATION," BY AMENDING ARTICLE V, ENTITLED "LOCAL BUSINESS TAX," BY REPEALING SECTION 102-388 THEREOF, ENTITLED "LEVY, COLLECTION AND ADMINISTRATION OF 1% LOCAL OPTION FOOD AND BEVERAGE TAX (HOMELESS AND DOMESTIC VIOLENCE TAX)," THEREBY STRIKING FROM THE CITY CODE ALL PROVISIONS AUTHORIZING MIAMI-DADE COUNTY TO LEVY, COLLECT, AND ADMINISTER THE 1% LOCAL OPTION FOOD AND BEVERAGE TAX (ALSO KNOWN AS THE "HOMELESS AND DOMESTIC VIOLENCE TAX") WITHIN THE MUNICIPAL LIMITS OF THE CITY OF MIAMI BEACH, AS PROVIDED IN SECTION 212.0306 OF THE FLORIDA STATUTES; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. Is a Business Impact Estimate Required? Yes Li No (if no, please check one of the boxes below) If one or more boxes are checked below, this means the City of Miami Beach has determined that a Business Impact Estimate for the above -referenced Ordinance is not required by State law. The proposed Ordinance is required for compliance with Federal or State law or regulation; The proposed Ordinance relates to the issuance or refinancing of debt: The proposed Ordinance relates to the adoption of budgets or budget amendments, including revenue sources necessary to fund the budget; The proposed Ordinance is required to implement a contract or an agreement, including, but not limited to, any Federal, State, localor private grant or other financial assistance accepted by the City; The proposed Ordinance is an emergency ordinance; The Ordinance relates to procurement; or The proposed Ordinance is enacted to implement the following: a. Private applications for comprehensive plan amendments and land development regulation amendments; b. Development orders, development permits, and development agreements: c. Sections 190.005 and 190.046, Florida Statutes, regarding community development districts; d. Section 553.73, Florida Statutes. relating to the Florida Building Code; or e. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code. Business Impact Estimate Page 2 If none of the above exceptions apply. this Business Impact Estimate is hereby provided in accordance with Section 166,041(4), Florida Statutes. 1. A summary of the proposed Ordinance and its purpose is more fully set forth in the Commission Memorandum accompanying the Ordinance, as well as in the recitals to the Ordinance itself. The Commission Memorandum and Ordinance are attached hereto. 2. The City of Miami Beach estimates that the proposed Ordinance will have no direct economic impact on private, for-profit businesses in the City of Miami Beach; that the proposed Ordinance will have no direct compliance costs that businesses may reasonably incur; that the proposed Ordinance will not impose any new charge or fee for which businesses will be financially responsible; and that the proposed Ordinance will not impact the City of Miami Beach's regulatory costs and will not generate any revenue from new charges or fees. 3. Good faith estimate of the number of businesses likely to be impacted by the proposed Ordinance: The City of Miami Beach estimates that no businesses are likely to be impacted by the proposed Ordinance. I 4. Additional cornments: None. Ordinances - R5 AB AM BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: City Attorney Ricardo J. Dopico DATE: October 30. 2024 First Reading TITLE: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH. FLORIDA, REPEALING ORDINANCE NO. 2023-4567, BY AMENDING CHAPTER 102 OF THE MIAMI BEACH CITY CODE. ENTITLED "TAXATION." BY AMENDING ARTICLE V. ENTITLED "LOCAL BUSINESS TAX," BY REPEALING SECTION 102-388 THEREOF. ENTITLED "LEVY COLLECTION AND ADMINISTRATION OF 1% LOCAL OPTION FOOD AND BEVERAGE TAX (HOMELESS AND DOMESTIC VIOLENCE TAX).- THEREBY STRIKING FROM THE CITY CODE ALL PROVISIONS AUTHORIZING MIAMI-DADE COUNTY TO LEVY, COLLECT, AND ADMINISTER THE 1% LOCAL OPTION FOOD AND BEVERAGE TAX (ALSO KNOWN AS THE -HOMELESS AND DOMESTIC VIOLENCE TAX-) WITHIN THE MUNICIPAL LIMITS OF THE CITY OF MIAMI BEACH, AS PROVIDED IN SECTION 212.0306 OF THE FLORIDA STATUTES: AND PROVIDING FOR CODIFICATION. REPEALER. SEVERABILITY. AND AN EFFECTIVE DATE. BACKGROUND/HISTORY The above Ordinance has been placed on the C ty Commission meeting agenda at the request of Commissioner David Suarez Section 212.0306(1)(b) of the Florida Statutes authorizes Miami -Dade County (the -County") to levy a 1% local option food and beverage tax. also known as the Homeless and Domestic Violence Tax (or the "1% Tax"), with the proceeds thereof dedicated for homeless services and the construction and operation of domestic violence centers. Pursuant to Section 212.0306. Fla. Stat., and Section 29-51 of the Miami- Dade County Code, the 1% Tax applies to all food and beverage sales generated by establishments with gross annual revenues of 5400,000 or more that are licensed by the State of Florida to sell alcoholic beverages for consumption on the premises, except for hotels and motels. The 1% Tax is collected throughout the County, with the exception of the three municipalities authorized to impose their own municipal resort tax. narnety, the City of Miami Beach (the "City"). the Town of Surfside, and Bal Harbour Village, each of which are exempt from the 1% Tax pursuant to Section 212.0306(2)(d), Fla. Stat. In Miami -Dade County. 85% of the 1% Tax benefits the Miami -Dade County Homeless Trust, the governing body which oversees the use of the portion of the Tax dedicated to homeless services and programsand the remaining 15% of the 1% Tax receipts is administered by the County's Domestic Violence Oversight Board for the construction and operation of domestic violence centers. On February 20, 2019. the Miami -Dade County Board of County Commissioners adopted Resolution No. R-214-19. urging the Florida Legislature to amend Section 212.0306 and expand the 1% Tax to include sales in the City of Miami Beach. in order to provide additional funding to provide shelter and related services to those experiencing homelessness and those fleeing domestic violence. On November 2, 2021, 53.45% of the voters voting in the City of Miami Beach Special Election approved a nonbinding straw ballot measure. which called for the City Commission to adopt a Resolution urging the Florida Legislature to amend Section 212.0306 of the Florida Statutes. to allow for the collection of the 1% Tax in the City of Miami Beach. On December 8. 2021 the Mayor and City Commission adopted Resolution No. 2021-31952. urging the Florida Legislature to amend Section 212.0306 of the Florida Statutes to allow for the collection of the 1%) Tax within the City of Miami Beach On May 25. 2023, Governor Ron DeSantis signed into law House Bill 7063 (HB 7063). which includes a provision authorizing the 1% Tax to be imposed within the municipal limits of the City of Miami Beach, subject to certain requirements. As amended, Section 212.0306(2)(d). Florida Statutes. now provides that "the tax authorized by paragraph (1)(b) may be levied in" a city or town which collects its own municipal resort tax "if the governing authority of the city or town adopts an ordinance that is subsequently approved by a majority of the electors in such city or town voting in a referendum held at a general election as defined in s. 97.021. ANALYSIS On July 26. 2023. the Mayor and City Commission adopted Ordinance No. 2023-4567, which created Section 102-388 of the City Code, entitled "Levy, collection and administration of 1% local option food and beverage tax (Homeless and Domestic Violence tax),' to authorize Miami -Dade County to levy, collect, and administer the 1% Tax in Miami Beach. as provided in Section 212.0306, Florida Statutes. subject to the approval of the City's voters in a general election (as defined in Section 97.021 Florida Statutes). On July 26, 2023, the Mayor and City Commission also adopted Resolution No. 2023-32719. calling for a November 5, 2024 City of Miami Beach Special Election, for the purpose of submitting to the electorate of the City of Miami Beach a question asking whether the 1% Tax should be levied in Miami Beach. The attached Ordinance repeals Section 102-388 of the City Code. entitled "Levy. collection and administration of 1% local option food and beverage tax (Homeless and Domestic Violence tax) in its entirety. A companion item, which is also sponsored by Commissioner David Suarez, has been placed on the October 30, 2024 City Commission meeting agenda to repeal the ballot question that will be submitted to the voters on the November 5, 2024 ballot. These two items will terminate any affirmative steps toward the levy of the 1% Tax in the City of Miami Beach If the City Commission adopts this Ordinance at First Reading. a Second Reading/Public Hearing will be scheduled. FISCAL IMPACT STATEMENT N/A f Does this Ordinance require a Business Impact Estimate? Yes (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://vvww.rniamibeachfl.govicity-hallicity-clerkimeeting-noticesi FINANCIAL INFORMATION CONCLUSION Applicable Area Citywide Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? Yes No Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department City Attorney Sponsor(s) Commissioner David Suarez Co-sponsor(s) Condensed Title ist Rdg. Repeal Homeless and Domestic Violence 1% Tax. (Suarez) CA ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, REPEALING ORDINANCE NO. 20234567, BY AMENDING CHAPTER 102 OF THE MIAMI BEACH CITY CODE, ENTITLED "TAXATION," BY AMENDING ARTICLE V, ENTITLED "LOCAL BUSINESS TAX," BY REPEALING SECTION 102- 388 THEREOF, ENTITLED "LEVY, COLLECTION AND ADMINISTRATION OF 1% LOCAL OPTION FOOD AND BEVERAGE TAX (HOMELESS AND DOMESTIC VIOLENCE TAX)," THEREBY STRIKING FROM THE CITY CODE ALL PROVISIONS AUTHORIZING MIAMI-DADE COUNTY TO LEVY, COLLECT, AND ADMINISTER THE 1% LOCAL OPTION FOOD AND BEVERAGE TAX (ALSO KNOWN AS THE "HOMELESS AND DOMESTIC VIOLENCE TAX") WITHIN THE MUNICIPAL LIMITS OF THE CITY OF MIAMI BEACH, AS PROVIDED IN SECTION 212.0306 OF THE FLORIDA STATUTES; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, Section 212.0306(1)(b) of the Florida Statutes autharzes Miami -Dade County (the 'County") to levy a 1% local option food and beverage tax, also known as the Homeless and Domestic Violence Tax (or the "1% Taxi. with the proceeds thereof dedicated for homeless services and the construction and operation of domestic violence centers and WHEREAS, pursuant to Section 212.0306, Fla Stat , and Section 29-51 of the Miami - Dade County Code, the 1% Tax applies to all foo and beverage sales generated by establishments with gross annual revenues of $400,000 or more that are licensed by the State of Florida to sell alcoholic beverages for consumption on the premises, except for hotels and motets. and WHEREAS, the 1 , Tax is collected throughout the County, with the exception of the three municipalities authorized to impose their own municipal resort taxnamely, the City of Miami Beach (the "City ). the Town of Surfside, and Bal Harbour V Wage. each of which are exempt from the 1% Tax pursuant to Section 212 0306(2)(d), Fla Stat ; and WHEREAS, 85% of the 1% Tax benefits the Miami -Dade County Homeless Trust, the governing body which oversees the use of the portion of the Tax dedicated to homeless services and programs, and the remaining 15% of the 1°'0 Tax receipts is administered by the County's Domestic Violence Oversight Board for the construction and operation of domestic violence centers_ and WHEREAS, on February 20, 2019, the Miami -Dade County Board of County Commissioners adopted Resolution No. R-214-19, urging the Florida Legislature to amend Section 212.0306 and expand the 1% Tax to include sales in the City of Miami Beach, in order to provide additional funding to provide shelter and related services to those experiencing homelessness and those fleeing dornestic violence; and WHEREAS, on November 2, 2021, 53.45% of the voters voting in the City of Miami Beach Special Election approved a nonbinding straw ballot measure, which called for the City Commission to adopt a Resolution urging the Florida Legislature to amend Section 212.0306 of the Florida Statutes, to allow for the collection of the 1% Tax in the City of Miami Beach; and WHEREAS, on December 8, 2021, the Mayor and City Commission adopted Resolution No, 2021-31952, urging the Florida Legislature to amend Section 212.0306 of the Florida Statutes to allow for the collection of the 1% Tax within the City of Miami Beach; and WHEREAS, on May 25, 2023, Governor Ron DeSantis signed into law House Bill 7063 (HB 7063), which includes a provision authorizing the 1% Tax to be imposed within the municipal limits of the City of Miami Beach, subject to certain requirements; and WHEREAS, as amended. Section 212.0306(2)(d), Florida Statutes, now provides that the tax authorized by paragraph (1)(b) may be levied in" a city or town which collects its own municipal resort tax "if the governing authority of the city or town adopts an ordinance that is subsequently approved by a majority of the electors in such city or town voting in a referendum held at a general election as defined in s. 97,021"; and WHEREAS, on July 26, 2023, the Mayor and City Commission adopted Ordinance No. 2023-4567, which created Section 102-388 of the City Code, entitled "Levy, collection and administration of 1% local option food and beverage tax (Homeless and Domestic Violence tax)," to authorize Miami -Dade County to levy, collect, and administer the 1% Tax in Miami Beach, as provided in Section 212.0306, Florida Statutes. subject to the approval of the City's voters in a general election (as defined in Section 97.021, Florida Statutes); and WHEREAS, on July 26, 2023, the Mayor and City Commission also adopted Resolution No. 2023-32719, calling for a November 5, 2024 City of Miami Beach Special Election, for the purpose of submitting to the electorate of the City of Miami Beach a question asking whether the 1% Tax should be levied in Miami Beach; and WHEREAS, since the adoption of Ordinance No. 2023-4567 and Resolution No. 2023- 32719, the Mayor and City Commission have decided to reevaluate the proposed 1% Tax in light of the City's efforts to address homelessness in Miami Beach, the additional cost of the 1% Tax to the City's residents and visitors, and uncertainty concerning whether proceeds generated from the 1% Tax in Miami Beach will in fact be dedicated to services for individuals experiencing homelessness in Miami Beach or victims of domestic violence in Miami Beach; and WHEREAS, the Mayor and City Commission now desire to repeal Ordinance No. 2023- 4567 in its entirety, and terminate any affirmative steps toward the levy of the 1% Tax 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. Chapter 102, entitled -Taxation," Article V. entitled "Local Business Tax," Section 102-388, entitled "Levy, collection and administration of 1% local option food and beverage tax (homeless and domestic violence tax),' is hereby amended as follows' CHAPTER 102 TAXATION 2 ARTICLE V. LOCAL BUSINESS TAX Se-. 142-48-8,Levy, (home4e-ss arvel- 40mest4c tax}. -of-4 147- -looat-option--food-a444-bevecage4a-x (-a4--T-4e---G-i-ty- OfM+84 - .1.1?.:- -€434-leGt arld a-€1-414i-rfis-tef the one pocoo-ntoGa4--ot-loci---food and beverageso.44Piowp---a&-444e---- -- domeerti-G-km-c4e-p-Ge---ta4C' - .. : 242,4;44g& as thez...6i30A,4jeci.44,1__Fs • • .• 11141 az teas., e-aG--wri494e ar+O z ae me tIlip 110 • • • tax- 644-4e-441-90se4--at-t-46,cate-of-oRe-faeft-ef4 41-44af--614a4je4-4 - e- a-fe 4rcie-nsessi-by4149-,State eAceiat-ho4e46-apfci af-4444-pra-R4--)es apol+Ga4e County Code SECTION 2. REPEALER. All ordinances or parts of ordinances and all section and parts ot sections in conflict herewith be and the same are hereby repealed. SECTION 3. CODIFICATION. It is the intention of the City Commission, and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Code of the City of Miami Beach as amended; that the sections of this ordinance may be renumbered or relettered to accomplish such intention; and that the word "ordinance's may be changed to "section" or other appropriate word. SECTION 4. SEVERABILITY. If any section, subsection, clause or provision of :his Ordinance is herd invald. the remainder shah not be affected by such invalidity. SECTION 5. EFFECTIVE DATE, This Ordinance shall take effect ten days following adoption. 3 PASSED AND ADOPTED this day of 2024, Steven Mener. Ma ATTEST RafaelE. Granado, City Cyar,c APPROVED AS TO FORM AND LANGUAGE & FOR EXECUTION 101 T-1 Date City ttorney (Sponsored by Commissioner Da\idSuarez