HomeMy WebLinkAboutMemorandumCITY OF MIAMI
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Victoria Mendez, City Attorney3
DATE: July 9, 2020
RE: City Commission Meeting — June 11, 2020
Proposed amendment to Chapter 56/Article V of the Code of the City of
Miami, Florida, as amended, titled "Taxation/Ad valorem tax exemption for
enterprise zone businesses," to repeal sunsetted provisions.
File No. 7485
The attached proposed amendment to Chapter 56/Article V of the Code of the
City of Miami, Florida, as amended, titled "Taxation/Ad valorem tax exemption for
enterprise zone businesses," updates the City Code to repeal sunsetted provisions.
Attachment(s)
cc: Arthur Noriega V, City Manager
Miriam Santana, Agenda Coordinator
VM/BLM//vja
City of Miami File ID: 7485 (Revision:) Printed On: 5/5/2025
City of Miami
Legislation
Ordinance
Enactment Number: 13911
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 7485 Final Action Date:7/9/202o
AN ORDINANCE OF THE MIAMI CITY COMMISSION REPEALING THE SUNSETTED
PROVISIONS IN CHAPTER 56/ARTICLE V OF THE CODE OF THE CITY OF MIAMI,
FLORIDA, AS AMENDED, TITLED "TAXATION/AD VALOREM TAX EXEMPTION FOR
ENTERPRISE ZONE BUSINESSES"; CONTAINING A SEVERABILITY CLAUSE; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Chapter 56/Article V of the Code of the City of Miami, Florida, as amended
("City Code"), titled "Taxation/Ad Valorem Tax Exemption for Enterprise Zone Businesses," was
enacted December 12, 2002 after a referendum held on November 6, 2001; and
WHEREAS, Section 56-122 of the City Code indicates that Chapter 56/Article V of the
City Code shall expire, pursuant to state law, ten (10) years after the date of the referendum;
and
WHEREAS, Chapter 56/Article V of the City Code expired on November 6, 2011 but
remains codified in the City Code;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Ordinance are
adopted by reference and incorporated as if fully set forth in this Section.
Section 2. Chapter 56/Article V of the City Code is amended in the following particulars:1
"CHAPTER 54
TAXATION
ARTICLE V. AD VALOREM TAX EXEMPTION FOR ENTERPRISE ZONE BUSINESSES
Sec. 56-110. Authority to grant the exemptions.
The city commission, at its discretion a-nrt,byor, nance, adlorem tax exemptions to
new and expanding businesses located within enterprise zones, as defined herein. The city
commission may commit to grant an exemption based on presentation of substantivc proposals
that indicate serious intent to establish a new busine-s or expand an existing busine"c within
1 Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be
added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and
unchanged material.
City of Miami
File ID: 7485 (Revision:) Printed On: 5/5/2025
plans and proposals is contingent upon the business completing the indicated improvements in
substantially thc samc form and extent as presented. Reserved.
Sec. 56-111. - Definitions.
For the purposes of this article, the following terms are defined as follows:
City shall mean the City of Miami, Florida.
City manager shall mean the city manager of the city.
Department shall mean the department of economic development of the city, or its successor, or
such other department as may be designated by the city commission for thi ose.
Enterprise zone shall mean the area located in the city which has been either designated as an
enterprise zone pursuant to F.S. § 290.005, and approved by the secretary of commerce
pursuant to F.S. § 290.0065, or has been authorized to be an enterprise zone pursuant to F.S. §
290.0065, and approved by the secretary of commerce pursuant to F.S. § 290.0065. The area
comprising enterprise zones, as defined herein, is depicted on the map, as may be amended
from time to time, maintained in the city clerk's office.
Expanding business shall mean any business, located in an enterprise zone, that increases
operations on a site co -located with a commercial or industrial operation owned by the same
business and which creates, or causes to be created, within the city, the number of new jobs
required in section 56-113 to employ full-time employees at such location.
New business shall mean any business located in an enterprise zone, that begins operations on
a site clearly separate from any other commercial or industrial operation owned by the same
business and which creates, or causes to be created, within the city, the number of new jobs
required under section 56-113, to employ additional full-time employees at such location.
Sec. 56-112. Scope ano n of exempti„ns. Miami -Dade County's Water and Sewer
Department Water and Sewer Connection Charge Exemption.
{a) If a busine-c qualifies as a new business, it may be granted an ad valorem tax exemption
of up to 100 percent of the a -sensed value of all improvements to real property made by or
or after adoption of this article in accordance with subsection 56 112(d).
(b) If a business qualifies as an expanding busine-s, it may be granted an ad valorem tax
cxcmption of up to 100 perccnt of thc a-e,c-e,cd valuc of all addcd improvements to real
property made to facilitate the expansion of the existing busine,,s and of the net increase in
all tangiblc personal property acquircd or added to facilitate such expansion of an existing
businesses, made or increased, on or after adoption of this article in accordance with
subsection 56 112(d). Property acquired to replace existing property shall not be
considered to facilitate a busine-s expansion.
{c) The exemption is available only to the extent that there is an increase in the a-se-sed
value of the real and the personal property caused by the new busine-s or expanding
busine-s seeking the exemption.
(d) The percentage of the increase in the a -sensed value subject to cxcmption undcr this
articic shall be adjusted during the term „f the exemption as f„liows.
{1) Years 1 through 5: Fifty percent; provided, however, that if 20 percent or more of the
permanent full time employees of the new or expanded busine-s are residents of the
cntcrprisc zonc, thcn the cxcmption will be 100 percent.
{2) Year 6: Forty percent.
{3) Year 7: Thirty percent.
/1 1 Year 8: Twenty percent.
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{5) Year 9: Ten percent.
{6) Year 10: Ten percent.
{e) The exemption shall apply only to the city's municipal millage and shall not apply to taxes
levied for payment of bonds or taxes authorized by a vote of the electors pursuant to
Section 9(b) or Section 12, Article VII, of the State Constitution. The exemption shall not be
available where its application would cause an impairment of the city's debt or pledged
revenues.
(f) New businesses or expanding businesses located within community redevelopment areas
within enterprise zones (CRA) are not eligible for ad valorem tax exemptions on real
property. Applications for the tax exemption on tangible personal property from businesses
located in a CRA shall require the prior approval of the CRA board.
maximum term of ten years, in accordance with section 56 119. An exemption shall not be
prolonged or extended by virtue of any sale of the business receiving the exemption.
(h) The occurrence of an event beyond the control of the applicant that physically destroys the
business will half the running of the applicable term allocated by the city commission for a
period not to exceed one year. Notice of occurrence must be filed with the department
within 30 days of occurrence.
(i) The granting and the term of the exemption shall be determined by the city commission, in
Sec. 56 113. Eligibility requirements.
{a) To be eligible for an ad valorem tax exemption a new business or expanding business
rnust increase, or caused to be increased, the employment roll at the location receiving the
cxcmption, by fivc or morc full timc jobs, on the year for which the exemption is desired to
take effect.
(b) It shall be a condition precedent to the granting of each annual renewal of the exemption
that the applicable job creation requirement be maintained throughout the entire term of the
exemption.
{c) To be eligible for the exemption it is not required that the new business or expanding
business be the fee simple owner of the property subject to the ad valorem tax, so long as
the new business or expanding business is legally or contractually responsible for the
payment of the ad valorem tax on the property nor is it nece-nary for the property owner to
also own thc new bucinc-s or expanding busine-c.
{-el-)—A new Business or expanding business that otherwise meets all other eligibility
requirements of Sections 2-348 and 2-348.1 of the Miami -Dade County Code, as amended,
shall be deemed to have received the ad valorem tax exemption authorized by this Article
for the sole purpose of applying to receive Miami -Dade County's Water and Sewer
Department water and sewer connection charge exemption; pursuant to Sections 2-348
and 2-348.1 of the Miami -Dade County Code, as amended. This is intended to satisfy the
requirement of Section 2-348.1(b)(2) without requiring separate application by the new or
expanding business to the City.
Sec. 56 114. Application procedures.
shall, in the year the exemption is desired to take effect, file a completed and written
application on a form prcscribcd by thc Department, on or before March 1 st of the year in
which the new or additional real or tangible personal property is first subject to ad valorem
{1) The name and location of the new businese or expanding businese;
{2) A description of the improvements to real property for which an exemption is being
requested Oho cost of su ch improvements and the date or proposed Hato of
r
commencement and completion of construction of such improvements;
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{3) A description of the tangible personal property for which an exemption is requested,
{'I) A description of the new business or expanding business, thc numbcr of full timc jobs
created or to bo created at the property and whether at load five of the fi ill_time
employees hired or to be hired to fill the newly created position are residents of the
enterprise zone•
{5) A copy of the conceptual building plans, if available;
{6) A copy of the building permit, if available;
{7) Number of residential units, if applicable;
n w bus+necc orra-n expand ussineccszr lefirnred in this -radicle and that the
applicant satisfies all eligibility requirements;
{9) Other information deemed necessary by the Department;;
(�r0) A reasonable nonrd r inable r easing fee to be esstabitshean d, an—d-applied
+ i#ormly; and
{11) Proof that property taxes are current.
{c) No action shall be taken by either the Department, the city manager, or city commission
until the report from the county property appraiser is received.
(d) Potential new businesses and expanding businesses may request the exemption in
advance of being placed on the tax roll.
Sec. 56 115. Report from the property appraiser.
The county property appraiser shall report the following information to the city commission:
{a) The total revenue available to the city for the current fiscal year from ad valorem tax
sources or an estimate if the actual total revenue available cannot be determined;
(b) Any revenue lost to the city for the current fiscal year by virtue of exemptions
actual total revenue lost cannot be determined;
{c) An estimate of the revenue which would be lost to the city during the current fiscal
year if the exemption applied for were granted had the property for which the
exemption is reoi iected otherwise been subieet to taxation• and
(d) A determination as to whether the property for which an exemption is requested
defined herein, which determination shall also be affixed to the face of the application.
Sec. 56 116. Recommendation for approval or denial.
All applications shall be reviewed by the Department which shall transmit its findings to the city
manager, who shall either recommend approval to the city commission or decline to recommend
approval.
Sec. 56 117. Appeal process.
In the event the city manager declines to recommend approval of an application to the city
commission, the applicant shall have the option to appeal the city manager's recommendation
directly to the city commission.
Notice to appeal must be presented to the city manager no later than 30 days from the date
applicant was notificd of dcnial by thc Dcpartment. Copies of the original application and notice
of denial must accompany appeal. Appeal must offer compelling reasons why the city
commission should consider the application for approval.
Sec. 56 118. Enactment of ordinance granting exemption.
the same manner as any other city ordinance, which shall include the following:
{a) The name and address of the new busine-s or expanding business to which the
cxcmption is granted;
City of Miami File ID: 7485 (Revision:) Printed On: 5/5/2025
(b) The total amount of revenue available to the city from ad valorem tax sources for the
current fiscal year, the total amount of revenue foregone by the city for the current
fiscal year by virtue of all economic development ad valorem tax exemptions in effect
current fiscal year attribi table to the exemption of the bi iciness named in the
ordinance;
(c) The period of time for which the exemption may remain in effect, which shall
commence in the year in which the new or additional real or tangible personal property
which shall be no later than ten years thereafter;
(d) A finding that the business propert„ tax bins are drrent; and
(e) A finding that a business located at the subject property referred to in the ordinance
If the city commission, in its discretion, considers the granting of a tax exemption to a -proposed
improvements. In such case the ordinance granting the tax exemption shall not be effective until
such timc as the proposed improvements have been completed in the manner approved by the
department.
Sec. 56 119. Renewal provision.
The Department shall renew the term of the exemptions granted pursuant to this article, each
filed on or before March 1 of the year for which renewal is sought. Applications for renewal shall
be accompanied by such documentation as may be reasonably required by the Department to
demonstrate that the applicant continues to satisfy all eligibility requirements. for which the
for that year. An exemption shall not be prolonged or extended by virtue of any sale of the
business receiving the exemption.
Sec. 56 120. Waiver of job requirement eligibility criterion.
The city commission, upon the recommendation of the city manager, may upon approval by no
cress than a four fifths majority vote, waive the job creation requirement described in subsection
56 113(a).
Sec. 56 121. Audits.
The city may audit businesses to determine compliance with the eligibility requirements and
busine-ses found not to be in compliance with the eligibility requirements shall be required to
make payment of the taxes exempted in addition to interest accrued at the maximum rate
allowcd by law.
Sec. 56 122. Expiration date.
The authority of the city commission to grant tax exemptions pursuant to this article shall expire,
pursuant to state law, ten years after the date of the referendum granting the authority to the city
tax exemptions shall not affect the unexpired term of any exemption in effect as of the expiration
date."
Section 3. If any section, part of a section, paragraph, clause, phrase, or word of this
Ordinance is declared invalid, the remaining provisions of this Ordinance shall not be affected.
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Section 4. This Ordinance shall become effective thirty (30) days after its adoption
and signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
ndez, City Attor ey ) 6/1/2020
2 This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10)
days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become
effective immediately upon override of the veto by the City Commission or upon the effective date stated
herein. whichever is later.
City of Miami File ID: 7485 (Revision:) Printed On: 5/5/2025