OIG No. 25-12 State Beachfront Management Agreement (3595) Financial Audit ReportTO: FROM:
DATE: PROJECT:
PERIOD:
Joseph M. Centorino, Inspector General
State of Florida Department of Environmental Protection Joseph M. Centorino, Inspector General
June 23, 2025 State Beachfront Management Agreement (#3595) Financial Audit Report OIG No.: 25-12
October 1, 2022 through September 30, 2023
This audit report is submitted in compliance with the audit reporting requirement of subparagraph
(2)of the original State Beachfront Management Agreement No. 750-0006, dated February 3,
1982, which the Florida Department of Natural Resources subsequently assigned No. 3595.Amendment number 1, signed on August 9, 2007, extended the original terms for an additional
twenty-five years until February 7, 2032.
INTRODUCTION
State Beachfront Management Agreement No. 3595 requires the City to remit to the State of Florida Department of Environmental Protection (State) a 25% "sand tax" of any and all monies
the City collects from concessionaires for the use of State-owned property. Pursuant to Florida
Statutes, the City also collects Florida Sales tax along with the beachfront rental revenue and
remits the same to the State of Florida Department of Revenue.
There are currently four related categories of beachfront property users: •Operators of concessions seaward of Lummus Park, Ocean Terrace, North Shore OpenSpace Park, 21st and 46th Streets, and Pier Park who pay for the use of the beachfront
according to their respective contractual agreements with the City.•Miami Beach hoteliers, apartments, and condominium associations located on thebeachfront pay beach "upland" fees to the City annually based on its corresponding
number of units. This category also includes "non-upland" fee properties that have
negotiated an agreement with nearby upland fee properties whereby their residents canuse the beach amenities of the upland properties.
•Special Event permits are granted to members of the public who organize, usually one
time-only events on the beach, such as weddings and volleyball tournaments. Thepayments from these special events are remitted to the City Tourism and CultureDepartment.•Special Events, Films, and Print productions that require the parking of essential vehicles
on the beach or sand areas must purchase Vehicle Beach Access passes from the CityTourism and Culture Department.
The City remitted the following four sand tax payments totaling $887,909.23 to the State of Florida
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based on the revenues collected during the 2022/23 fiscal year:
Check Date Period Check Number Check Amount
01/19/2023 Oct-Dec 2022 483929 $230,756.83
04/18/2023 Jan-Mar 2023 487031 $200,288.47
07/18/2023 Apr-Jun 2023 491130 $307,859.51
10/17/2023 Jul-Sep 2023 495178 $149,004.42
TOTAL $887,909.23
PURPOSE
The purpose of this audit is to determine whether the City complied with State Beachfront
Management Agreement No. 3595's terms by accurately calculating and timely remitting all sand
tax monies due to the State of Florida Department of Environmental Protection equal to 25% of
any and all monies collected from concessionaires for the use of State-owned property.
OVERALL OPINION
Based on the City of Miami Beach Office of the Inspector General (OIG) Auditor's examination of
available City records, it was determined that the State of Florida was correctly paid from October 1, 2022, through September 30, 2023, the audit period.
Norman Blaiotta, Chief Auditor
cc: Eric Carpenter, City Manager
Date
Jason Greene, Chief Financial Officer
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6th Floor, Miami Beach, FL 33139 Tel: 305.673.7020 • Hotline: 786.897.1111
Email: CityofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
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6/25/2025 | 9:48 AM EDT