R5Y - Repeal Homeless/domestic Violence Tax

Ordinances - R5 Y

COMMISSION MEMORANDUM

1:30 p.m. Second Reading Public Hearing

RECOMMENDATION

BACKGROUND/HISTORY

The above Ordinance has been placed on the City Commission meeting agenda at the request of Commissioner David Suarez.

The proposed Ordinance was approved on First Reading at the October 30, 2024 City Commission meeting. No changes have been made between First and Second Reading.

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 $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 motels.

The 1% Tax is collected throughout the County, with the exception of the three municipalities authorized to impose their own municipal resort tax, namely, 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 programs, and 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. Resolution No. 2023-32719 was repealed by the City Commission on October 30, 2024.

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.

FISCAL IMPACT STATEMENT

N/A

Does this Ordinance require a Business Impact Estimate? Yes (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: 1/6/2024. See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

Applicable Area

Citywide

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

1:30 p.m. 2nd Rdg, Repeal Homeless and Domestic Violence 1% Tax. (Suarez) CA

Previous Action (For City Clerk Use Only)

Not reached on 3/19/2025 - R5 O