HomeMy WebLinkAboutOIG No. 26-03 Resort Tax Audit Activities SummaryDocusign Envelope ID: 956FC8CB-1D17-8A6E-8237-4B456866B293
Joseph M. Centorino, Inspector General
TO: Honorable Mayor and Members of the City Commission FROM: Joseph M. Centorino, Inspector General DATE: April 30, 2026
PROJECT: Resort Tax Audit Activities Summary REPORT No.: OIG No. 26-03 PERIOD: October 1, 2025, through March 31, 2026
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. The resort tax is 2% on food and beverage gross revenues and 4% on lodging gross revenues for stays of 6 months or less. These businesses include annual filers, such as apartment buildings that rent for more than six months, and monthly filers, including 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 that taxpayers report revenues and remit taxes accurately. It is important to note that any funds collected based on the OIG audit assessments represent revenue the City would otherwise not receive, underscoring the importance of accurate enforcement.
An analysis of the Resort Tax Database, as of the date of this report, showed that there were 4,263 active Resort Tax accounts, comprised of 954 annual filers and 3,309 monthly filers. The number of monthly accounts has increased significantly over the past several years, primarily due
to short-term rentals.
The OIG determines assessments through audits but is not involved in the collection process
managed by the Finance Department. This process can result in adjustments, settlements, or resolutions, and maintains a clear separation between auditing and collection 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 20 years, thereby delaying a final accounting of the satisfaction of the assessments associated with 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 of such 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
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incorrect report, or makes a report that is false or fraudulent, it shall be the duty of the city to make an assessment from an estimate based upon the best information then available to it for the
taxable period of sales or rentals, together with interest, plus penalty, if such 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 audits between October 1, 2025, and March 31, 2026, resulting in net assessments of $4,425,540. The breakdown below provides more specific details:
A. Annual Filers - 9 audits completed with assessments totaling $377,333
• Two completed audits resulted in assessments totaling $48,331
• Seven estimated assessments were performed, totaling $329,001
• No audits resulted in $0 assessments. B. Monthly Filers - 74 audits completed with assessments totaling $4,048,207
• Fifty-five completed audits resulted in assessments totaling $2,735,181
• Twelve taxpayers did not provide the requested records, which resulted in estimated assessments totaling $1,313,026
• Seven audits resulted in $0 assessments.
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.
Respectfully submitted,
Joseph Centorino, Inspector General Date
Norman Blaiotta, Chief Auditor Date
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach 1130 Washington Avenue, 6th Floor, Miami Beach, FL 33139 Tel: 305.673.7020 • Fax: 305.587.2401 • Hotline: 786.897.1111 Email: CityofMiamiBeachOIG@miamibeachfl.gov Website: www.mbinspectorgeneral.com
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