OIG No. 25-18 Resort Tax Activities SummaryTO:
FROM:
DATE:
PROJECT:
PERIOD:
7OR G
Joseph M.Centorino,Inspector General
Honorable Mayor and Members of the City Commission
Joseph M.Centorino,Inspector General
October 14,2025
Resort Tax Audit Activities Summary
April 1,2025,through September 30,2025
OIG No.25-18
Tax Auditors in the City of Miami Beach's Office of the Inspector General (OIG)Audit Division
ensure that registered businesses comply with Resort Tax State and City Code regulations.These
businesses include annual filers,such as apartment buildings that rent for over six months,and
monthly filers that include hotels,short-term rentals,nightclubs,bars,and restaurants.Annual
filers submit once a year by May 20th for the May-April period,while monthly filers file each month
by the twentieth for the previous month.The audits verify whether taxpayers report revenues and
remit taxes accurately.
An analysis of the Resort Tax Database,as of the date of this report,showed that there were
4,253 active Resort Tax accounts,comprised of 949 annual filers and 3,304 monthly filers.The
number of monthly accounts has increased significantly over the past several years due primarily
to short-term rentals.
The assessments and estimated figures are predicated on records provided as of the date of this
report and may vary with subsequent appeals or additional documentation.If an operator appeals
or provides new records,the Tax Auditor will review and adjust the assessments as appropriate.
The OIG determines assessments through audits but is not involved in the collection process
handled by the Finance Department.This process can lead to adjustments,settlements,or
resolutions involving other City agencies,and maintains clear separation between auditing and
enforcement duties.
It is important to note that assessments are not always paid on time,which can lead the City to
place liens on property owned by delinquent taxpayers or corporate officers.These liens may
remain in effect for up to twenty years,thereby delaying a final accounting of the satisfaction of
the assessments pertaining to those liens.
In addition,City Code Section 102-311(6)states as follows:If any operator charged in this section
fails or refuses to make his records available for inspection so that no audit or examination has
been made of the books and records ofsuch operator or person,fails or refuses to register as an
operator,or fails to make a report and pay the tax as provided by this division,or makes a grossly
incorrect report,or makes a report that is false or fraudulent,it shall be the duty of the city to make
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an assessment from an estimate based upon the best information then available to it for the
taxable period ofsales or rentals,together with interest,plus penalty,ifsuch have accrued,as the
case may be.Then the city shall proceed to collect such taxes,interest and penalty on the basis
of such assessment,which shall be considered prima facie correct;and the burden to show the
contrary shall rest with the operator.
Estimated assessments are imposed when taxpayers refuse to cooperate or lack proper
documentation.If adequate records are later provided,the Tax Auditor reviews and adjusts the
assessment.Some taxpayers pay the assessed amount,while others do not respond at all,
making their assessments final.
In total,the Tax Auditors completed 146 audits between October 1,2024,and September 30,
2025,resulting in net assessments of $3,913,682.59.The breakdown below provides more
specific details:
A.Annual Filers -32 audits completed with assessments totaling $141,674.76
•Six completed audits resulted in assessments totaling $36,400.22
•Three estimated assessments were performed,totaling $105,274.54
•Twenty-three audits resulted in $0 assessments,as no material differences were noted
from the amounts reported and remitted.
B.Monthly Filers -114 audits completed with assessments totaling $3,772,007.83
•Sixty-nine completed audits resulted in assessments totaling $2,993,629.60
•Seventeen taxpayers did not provide the requested records,which resulted in
estimated assessments totaling $778,378.23
•Twenty-eight audits resulted in $0 assessments,as no material differences were noted
from the amounts reported and remitted.
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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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