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HomeMy WebLinkAboutBack-Up DocumentsM I A M I•DADE COUNTY Daniella Levine Cava, Mayor December 20, 2024 Francis Suarez, Mayor City of Miami 444 SW 2nd Ave Miami, FL. 33130 Re: Implementation of commission structure for Ad -Valorem tax collection Dear Mr. Suarez, Miami -Dade County Office of the Tax Collector 200 NW 2"d Avenue Miami, FL 33128 T 305-375-1521 Cire.Andino@miamidade.gov miamidade.gov miamidade.gov As a result of the Florida Constitution Amendment 10 passing in 2018, the Miami -Dade County Office of the Tax Collector will become an independent constitutionally elected office on January 7th, 2025. For the remainder of Fiscal Year (FY) 2024-25, the Office of the Tax Collector will continue to operate under the budget approved by the Miami -Dade Board of County Commissioners. Effective October 1st, 2025, the Office of the Tax Collector will become a "Fee Office" and will be funded through commissions and fees established under Florida State Statutes. In 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. Because this change will have an impact on your FY 2025-26 budget development process, we are providing this advance notice to provide sufficient time to adjust your budgets to address the reduction in tax proceeds your municipality will receive. To help you project the impact this change will have, we have included a projected commission impact report, which is based on the distributions completed from November 1st, 2024 through December 10th, 2024. We will continue to provide additional impact reports as we get closer to this change. Any unused commission collected by our office will be reallocated and distributed to the respective taxing authorities as mandated by state statute at the end of the fiscal year. If you have any questions regarding this change or require further clarification, please do not hesitate to contact our office. Thank you for your attention to this matter. Respectfully, Gerardo Gomez, Interim Dire► or Miami -Dade County Office ` the •x Collector Funding Agency Agency Code Distribution Category CIT rOF MIIiCMI CITY OF MIAMI CITY OF MIAMI CITY01 CITY OF MIAMI CITY OF°MIAMI CITY OF MIAMI Miami -Dade Office of the Tax Collector - Projected Commission Impact - Run 12/12/202410:45AM CITY01 —Any of. Real... — CITYAI Real Estate Delinquent„ Real CITY01 Tangible Property Delinquent Real Estate Current Tangible Property Current Real Estates Delinquent, Real CITY01 Tangible Property Delinquent nt CITY01 Tangible Property Current CITY OF MIAMI CITY01 CITY°OF MIAMI C13 YA1 CITY OF MIAMI CITY01 Tangible Property Installment P.ioperty'Delini Real Estate Current, Real Estate Delinquent, Real Estate Homestead CITY01 Tangible Property Curr CITY OF MIAMI CITY01 Real Estate Current, Real Estate Delinquent, Real Estate Homestead, Real Estate Installment, Tangible Property Current, Tangible Property Delinquent, Tangible Property Installment (Note) B: Commission - includes 1 % commission on Tangible Property and/or postage Dstributon Dab (Month) — Any — November November November ;November November November Novi November A: Allocated e: Commission C: Distributed Amt Distribution Dab Distribution ID — >=1404 — 9/2024 1404 4.74 9,555.91 803,815.50 14,031.43 1,891,655.84 2,338.23 December 317,734,968.81 7 December, November 479,665,272.86 4.74 9,555.91 11/19/2024 1405 1406 803,815.50 11/19/2024 1407 14 507.76 - 1 /222024 14 39 14, 031.43 11 /22/2024 1411 507569.59 , ,, i IJ22/2024 1412 1,891,655.84 56,537 *t9 %6 560.096 95 2,338.23 50,,934.e2 130,427.96 317,604,540.85 7,341,234.84 238,515.68 479,426,757,18 11/22/2024 1413 11/27J2024 1414 11/27/2024 1415 12J3/2024 :14'17 12/3/2024 1420 D: Projected Commission Impact — Allocated `.02- 38.30 191.14 1,310:663.38 16,076.71 280.62 37,833.52 46.77 1,018.72 6,354,763.86 146,824 86 9,593,396.97 (Note) D: Projected Commission Impact = 2% x A: Allocated F1nriZta ARTHUR NORIEGA, V CITY MANAGER March 20, 2025 Gerardo Gomez, Deputy Tax Collector Miami -Dade County Office of the Tax Collector 200 NW 2nd Avenue Miami, FL 33128 P.O. BOX 330708 MIAMI, FLORIDA 33233-0708 (305) 250-5400 FAX (305) 250-5410 RE: Non -applicability of Tax Collector Commission for the collection of City of Miami ad valorem taxes Dear Mr. Gomez: This letter is in response to the December 20, 2024, Letter ("Fee Letter") the City of Miami ("City") received from the Office of the Miami -Dade County Tax Collector ("Tax Collector") and subsequent communications between the City and the County. In the Fee Letter, you note 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." The City is aware that the Tax Collector's Office has become a "Fee Office." As you note in the Fee Letter, the fees the Tax Collector is authorized to charged is governed by Section 192.091(2), Fla. Stats., as amended ("F.S."). After review of the Fee Letter by City staff and the City Attorney's Office, it is the City's position that the City is not subject to the fees imposed under Section 192.091(2), F.S., and the Tax Collector is not authorized to charge the fee against the City. 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. Therefore, the Tax Collector is not authorized under Section 192.091(2), F.S., to reduce the tax proceeds the City receives. Therefore, the City respectfully requests that the Tax Collector rescind its Fee Letter and issue a subsequent letter confirming that the Tax Collector will not be charging the fee against the City within ten (10) calendar days from receipt of this Letter. We look forward to your response confirming that the City is not subject to the fees under Section 192.091(2), F.S. Document 2396661 2 Please do not hesitate to contact us if you wish to discuss this matter in further detail. Sincerely, Arthh`r Noriega V City Manager CC: Mayor Francis X. Suarez Natasha Colebrook -Williams, Deputy City Manager Barbara Hernandez, Assistant City Manager Larry M. Spring, Assistant City Manager/Chief Financial Officer George K. Wysong III, City Attorney Xavier E. Alban, Deputy City Attorney Document 2396661 2