LTC 015-2025 Fiscal Impact of Miami-Dade County Office of the Tax Collector's Transition to a Fee OfficeMIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC# 015-2024
TO:
FROM:
DATE:
SUBJECT:
LETTER TO COMMISSION
Honorable Mayor Steven Meiner and Members of the City Commission
Eric Carpenter, City Manager � �
January 13, 2025
Fiscal Impact of Miami-Dade County Office of the Tax Collector's Transition to a "Fee
Office"
The purpose of this Letter to Commission (L TC) is to inform the Mayor and City Commission
about a recent communication from Miami-Dade County's Office of the Tax Collector regarding
its decision, as a new elected office, to transition to a "Fee Office" and the anticipated fiscal
implications for the City's FY 2026 budget.
On December 20, 2024, the City received the attached letter, which details the Tax Collector's
election to operate as a "Fee Office" under the provisions of Florida Statute 192.091 (2).
Effective October 1, 2025, the Office of the Tax Collector will begin imposing a 2% commission
on the total amount of real and tangible personal property taxes and special assessments
collected and remitted within Miami-Dade County. In accordance with state law, any surplus
commission collected will subsequently be redistributed to the City. This will affect all
municipalities within Miami-Dade County.
Based on the Certified Taxable Values as of July 1, 2024, the Tax Collector's Office estimates
that the FY 2025 commission would have amounted to approximately $4.5 million. Consequently,
the City must plan for an increase of upwards of $4.5 million in budgeted expenditures starting
with the FY 2026 budget.
Additionally, this development coincides with other significant changes to the City's taxable
property values, including the recent passage of Amendment 5 by voters in November 2024. This
amendment increases the homestead property exemption, further constraining the growth of
taxable property values for the upcoming fiscal year. As a result, it is crucial to exercise caution
when considering mid-year adjustments to the FY 2025 budget outside the standard budgetary
process.
The Administration will provide additional updates during the FY 2026 budget process. Should
you have any questions or require further clarification, please contact Tameka Otto Stewart,
Director of the Office of Management and Budget, at tamekaottostewart@miamibeachfl.gov.
Attachment A: Letter from the Miami-Dade County Office of the Tax Collector
JDG/TOS :t'6. �