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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #17423 Date: 04/01/2025 Commission Meeting Date: 04/10/2025 Requesting Department: Office of the City Attorney and City Manager's Office Sponsored By: District Impacted: All Type: Resolution Subject: Authorize CA Legal Proceedings - Miami Dade County Tax Collector Purpose of Item: A resolution of the Miami City Commission authorizing the City Attorney to take any and all action(s) necessary, in law or equity, regarding the commission fee the Miami Dade County Tax Collector intends to collect on the amount of all real and tangible personal property taxes and special assessments collected and remitted in the city for the fiscal year 2025-2026 commencing on October 1, 2025, and ending September 30, 2026, and future fiscal years. Background of Item: On November 6, 2018, voters in the State of Florida adopted Amendment 10 to the State of Florida ("State") Constitution. As a result of Amendment 10, on January 7, 2025, the Miami -Dade County Tax Collector ("Tax Collector"), among other offices, became a constitutional office operating independently from Miami -Dade County government. On or about December 20, 2024, the City of Miami ("City") received a letter from the Tax Collector stating that beginning on October 1, 2025, "[i]n accordance with Florida Statute 192.091 (2), the Office of the Tax Collector will begin charging a commission on the amount of all real and tangible personal property taxes and special assessments collected and remitted in Miami -Dade County ...." ("Fee Letter"). In the Fee Letter the Tax Collector estimated that the City's commission fee beginning October 1, 2025, was estimated to be over $9 Million Dollars. Subsequent projections provided by the Tax Collector show that the estimated commission fee has increased to be in excess of $12 Million Dollars. Section 192.091(2), Fla. Stats., as amended ("F.S."), governs the commission fee the Tax Collector may assess and collect. Pursuant to Section 192.091(2), F.S., the Tax Collector is limited to collecting fees upon the amount of all real and tangible personal property taxes and special assessments collected and remitted by the County, taxing districts, and special assessment districts. The City is not a County, a taxing district, or a special assessment district as defined in the applicable Florida Statutes and regulations and therefore, the Tax Collector is not authorized under Section 192.091(2), F.S., to assess and collect the commission fee against the City. On March 20, 2025, the City Manager sent a letter ("City Letter") to the Tax Collector advising him that he is not authorized under Section 192.091(2), F.S., to assess and collect the commission fee against the City and requesting the Tax Collector to rescind the Fee Letter within ten (10) calendar days after receipt of the City Letter. As of the date of the adoption of this Resolution, the City has not received a response to the City Letter. The City disagrees with the Tax Collector's position to withhold the commission fee form the City's ad valorem tax revenues. The City is currently in the process of preparing its Fiscal Year 2025-2026 budget commencing on October 1, 2025, and ending September 30, 2024 ("Fiscal Year 25-26"). Pursuant to Section 200.065, F.S., the City is required to have its proposed millage rate to fund its tentative budget for the Fiscal Year 25-26 no later than August 4, 2025. If the Tax Collector unlawfully assesses and collects the commission fee, it will reduce the City ad valorem tax revenue and would affect the numerous governmental and essential services the City provides its residents, business owners, visitors, and property owners for FY 25-26. If the Tax Collector unlawfully assesses and collects the commission fee, it may require the City to unnecessarily increase its millage rate in order to provide the same level of governmental and essential services the City provides its residents, business owners, visitors, and property owners for FY 25-26 and future fiscal years. Budget Impact Analysis Item is Related to Revenue Item has NOT an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: N/A City Manager's Office City Manager's Office Legislative Division Office of Management and Budget Office of the City Attorney Office of the City Attorney City Commission Office of the City Clerk Reviewed B Natasha Colebrook -Williams Natasha Colebrook -Williams Valentin J Alvarez Marie Gouin Xavier Alban George K. Wysong III Maricarmen Lopez City Clerk's Office Deputy City Manager Review City Manager Review Legislative Division Review Budget Review ACA Review Approved Form and Correctness Meeting Rendered Completed 04/01/2025 6:55 PM Completed 04/01/2025 7:23 PM Completed 04/01/2025 7:24 PM Completed 04/01/2025 7:32 PM Completed 04/01/2025 7:45 PM Completed 04/01/2025 8:29 PM Completed 04/10/2025 9:00 AM Completed 04/17/2025 5:42 PM City of Miami Legislation Resolution Enactment Number: R-25-0137 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 17423 Final Action Date:4/10/2025 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY ATTORNEY TO TAKE ANY AND ALL ACTION(S) NECESSARY, IN LAW OR EQUITY, REGARDING THE COMMISSION FEE THE MIAMI-DADE COUNTY TAX COLLECTOR INTENDS TO COLLECT ON THE AMOUNT OF ALL REAL AND TANGIBLE PERSONAL PROPERTY TAXES AND SPECIAL ASSESSMENTS COLLECTED AND REMITTED IN THE CITY FOR THE FISCAL YEAR 2025-2026 COMMENCING ON OCTOBER 1, 2025, AND ENDING SEPTEMBER 30, 2026, AND FUTURE FISCAL YEARS. WHEREAS, on November 6, 2018, voters in the State of Florida adopted Amendment 10 to the State of Florida ("State") Constitution; and WHEREAS, as a result of Amendment 10, on January 7, 2025, the Miami -Dade County Tax Collector ("Tax Collector"), among other offices, became a constitutional office operating independently from Miami -Dade County government; and WHEREAS, on or about December 20, 2024, the City of Miami ("City") received a letter from the Tax Collector stating that beginning on October 1, 2025, "[i]n accordance with Florida Statute 192.091 (2), the Office of the Tax Collector will begin charging a commission on the amount of all real and tangible personal property taxes and special assessments collected and remitted in Miami -Dade County ...." ("Fee Letter"); and WHEREAS, in the Fee Letter the Tax Collector estimated that the City's commission fee beginning October 1, 2025, was estimated to be over $9 Million Dollars; and WHEREAS, subsequent projections provided by the Tax Collector show that the estimated commission fee has increased to be in excess of $12 Million Dollars; and WHEREAS, Section 192.091(2), Fla. Stats., as amended ("F.S."), governs the commission fee the Tax Collector may assess and collect; and WHEREAS, pursuant to Section 192.091(2), F.S., the Tax Collector is limited to collecting fees upon the amount of all real and tangible personal property taxes and special assessments collected and remitted by the County, taxing districts, and special assessment districts; and WHEREAS, the City is not a County, a taxing district, or a special assessment district as defined in the applicable Florida Statutes and regulations and therefore, the Tax Collector is not authorized under Section 192.091(2), F.S., to assess and collect the commission fee against the City; and WHEREAS, on March 20, 2025, the City Manager sent a letter ("City Letter") to the Tax Collector advising him that he is not authorized under Section 192.091(2), F.S., to assess and collect the commission fee against the City and requesting the Tax Collector to rescind the Fee Letter within ten (10) calendar days after receipt of the City Letter; and WHEREAS, as of the date of the adoption of this Resolution, the City has not received a response to the City Letter; and WHEREAS, the City disagrees with the Tax Collector's position to withhold the commission fee from the City's ad valorem tax revenues; and WHEREAS, the City is currently in the process of preparing its Fiscal Year 2025-2026 budget commencing on October 1, 2025, and ending September 30, 2026 ("Fiscal Year 25-26"); and WHEREAS, pursuant to Section 200.065, F.S., the City is required to have its proposed millage rate to fund its tentative budget for the Fiscal Year 25-26 no later than August 4, 2025; and WHEREAS, if the Tax Collector unlawfully assesses and collects the commission fee, it will reduce the City ad valorem tax revenue and would affect the numerous governmental and essential services the City provides its residents, business owners, visitors, and property owners for FY 25-26; and WHEREAS, if the Tax Collector unlawfully assesses and collects the commission fee, it may require the City to unnecessarily increase its millage rate in order to provide the same level of governmental and essential services the City provides its residents, business owners, visitors, and property owners for FY 25-26 and future fiscal years; and WHEREAS, the City Commission finds that it is in the best interest of the City residents, business owners, visitors, and property owners to authorize the City Attorney to take any and all action(s) necessary, in law or equity, regarding the commission fee the Tax Collector intends to impose on the City for FY 25-26 and future fiscal years; and NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Commission hereby authorizes the City Attorney to take any and all action(s) necessary, in law or equity, regarding the commission fee the Tax Collector intends to assess and collect on the amount of all real and tangible personal property taxes and special assessments collected and remitted in the City for FY 25-26 and future fiscal years. Section 3. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: rge = . Wyk ng III, C ty ttor -y 4/1/2025