Item J4I ,
County of Monroe BOARD COUNTY COMMISSIONERS
Mayor Ge Neugent, District 2
The Florida. Keys Mayor Pro Tern David Rice, District 4
Danny L. Kolhage, District 1
T V- Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
September 27, 2017
Agenda Item Summary #3433
ADD ON DAY OF MEETING: WILL BE PUBLIC HEARING J -4
BULK ITEM: No DEPARTMENT: County Attorney's Office
TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger (305) 292 -3470
PUBLIC HEARING
AGENDA ITEM WORDING: Approval of an emergency ordinance under F.S. 125.66(3)
providing for a temporary exemption from paying the 4 cent tourist development tax and the 1 cent
tourist impact tax (bed taxes) for rentals of qualifying residential properties to residents displaced by
Hurricane Irma.
ITEM BACKGROUND: Hurricane Irma rendered thousands of residential properties in the Keys
uninhabitable. Many residents have been displaced from their homes as a result. Staff is currently
working on several options to provide housing for displaced residents.
Transient rental properties are one available option for temporary housing for those displaced
residents. However, rentals of residential properties for less than 181 days triggers tax liability for
the tourist development (4 cents) and tourist impact (1 cent) taxes (collectively the "bed taxes "),
which are collected by the Tax Collector. One incentive to induce owners of transient rental
properties to offer those housing units for rent to local displaced residents is to provide a temporary
exemption from the bed taxes. The proposed ordinance, as drafted, would authorize such a
temporary exemption, which would take effect upon adoption and last for no more than 6 months,
unless shortened or extended by the Commission.
To be eligible for the exemption, a property owner would need to provide documentation to the Tax
Collector that it had rented to a qualifying displaced resident and that the rental period was of
sufficient duration to be legal under the land development regulations of the particular municipality
where the property is located or of the County if the property is located in the unincorporated areas.
The Tax Collector is authorized to adopt regulations including forms necessary to administer the
exemption.
To be clear, subject properties would still be liable for the 7.5 sales tax, which are collected by the
Department of Revenue ( "DOR "). At the County's request, Representative Raschein asked the
Governor on Monday 9/25/17 to issue an emergency order offering a similar abatement or
exemption of all or a portion of those taxes. The Governor indicated he would ask his staff to look
into the matter, however this ordinance is being put forth in the event the Governor is unable to or
declines to issue such an emergency order, or issues such an order that is limited to the portion of the
taxes collected by DOR.
The County's bond counsel has verbally advised the County Attorney that enacting this ordinance as
drafted will not impair the County's bond obligations since none of the affected revenues have been
specifically pledged as collateral to secure repayment of any outstanding bonds. Note, one half of
the tourist impact tax collect goes to the general fund, which is the subject of at least one covenant to
budget and appropriate. However, such covenants, by themselves, are not strictly pledges of
collateral.
Note, this proposed ordinance has not been fully vetted by all staff but due to the exigent and
emergency circumstances created by the storm, it is being offered for consideration as an add on for
discussion and possible adoption if the Board deems it appropriate to do so at the September 27,
2017 meeting.
PREVIOUS RELEVANT BOCC ACTION: None.
CONTRACT /AGREEMENT CHANGES:
No
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Emergency Ordinance creating temporary exemption for bed taxes for properties renting to displaced
residents
FINANCIAL IMPACT:
Effective Date: Immediately upon adoption
Expiration Date: As drafted, March 27, 2018 unless rescinded sooner or extended by the
Board.
Total Dollar Value of Contract: n/a
Total Cost to County: To be determined. One respected vacation rental industry
representative estimated that the total tax liability for the estimated participants would be
$900,000. If that estimate is accurate, the portion subject to exemption would be
approximately $360,000.
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
To be determined
REVIEWED BY:
Bob Shillinger
Completed
09/26/2017 5:15 PM
Bob Shillinger
Completed
09/26/2017 5:15 PM
Budget and Finance
Skipped
09/26/2017 5:13 PM
Maria Slavik
Skipped
09/26/2017 5:13 PM
Kathy Peters
Completed
09/26/2017 5:32 PM
Board of County Commissioners
Pending
09/27/2017 4:00 PM
ORDINANCE NO. -2017
AN ORDINANCE OF THE MONROE COUNTY BOARD OF
COUNTY COMMISSIONERS CREATING A TEMPORARY
EXEMPTION FROM THE LIABILITY FOR TOURIST
DEVELOPMENT TAXES AND TOURIST IMPACT TAXES FOR
PROVIDERS OF RENTAL HOUSING OF AT LEAST THIRTY
(30) DAYS BUT NO MORE THAN 181 DAYS TO RESIDENTS
DISPLACED BY HURRICANE DAMAGE; AUTHORIZING THE
MONROE COUNTY TAX COLLECTOR TO ADOPT RULES TO
ADMINISTER THE EXEMPTION; DECLARING AN
EMERGENCY AND PROVIDING FOR ADOPTION WITHOUT
NOTICE UPON APPROVAL BY A SUPERMAJORITY VOTE;
AND PROVIDING FOR AN EFECTIVE DATE; PROVIDING FOR
A SUNSET DATE; AND PROVIDING FOR SEVERABILITY
WHEREAS, on September 4, 2017, Governor Rick Scott declared a state of emergency in
anticipation of the devastating impact that Hurricane Irma would have on the State of Florida; and
WHEREAS, on September 5, 2017, Mayor George Neugent declared a state of emergency in
Monroe County in anticipation of the devastating impact that Hurricane Irma would have on Monroe
County and the Florida Keys; and
WHEREAS, Hurricane Irma struck parts of Monroe County as a Category 4 hurricane, leaving
thousands of homes uninhabitable and leaving residents in immediate need of housing; and
WHEREAS, many residential properties that are used as second and/or vacation rental homes
survived the storm in habitable condition; and
WHEREAS, these surviving residential properties are perfectly situated to provide housing to
those residents displaced from their own homes due to storm related damage; and
WHEREAS, Florida law authorizes and the County Code imposes a four cent tourist development
tax' and a one cent tourist impact tax" (hereinafter referred to the "bed taxes ") on any person or entity that
rents, leases, or lets for consideration any living quarters or accommodations in any hotel, apartment,
motel, resort, rooming house, tourist or trailer camp or condominium, or vacation rental home (hereinafter
"short term rental housing ") for periods of six (6) months or less; and
WHEREAS, the Monroe County Tax Collector is responsible for collecting and administering the
bed taxes from providers of short term rental housing; and
WHEREAS, the Federal Emergency Management Agency is providing a stipend to displaced
residents to assist with securing local short term rental housing; and
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WHEREAS, the stipend provided is far less than the monthly ownership costs commonly
associated with owning a short term rental housing; and
WHEREAS, the Board finds it necessary to provide a tax incentive to the owners of short term
rental housing to induce those owners to provide short term rental housing to residents displaced by the
storm by providing a temporary exemption from paying the bed taxes; and
WHEREAS, the bed taxes are intended to fund tourist related programs such as marketing,
improvements to certain tourist related infrastructure projects, and to offset the ad valorem tax loss
associated with purchasing land for conservation purposes; and
WHEREAS, allowing residents who have been displaced from their homes to stay in short term
rental housing does not add to the tax burdens meant to be offset by the bed taxes; and
WHEREAS, Florida law vest the County Commission with the authority to legislate county -wide
on this subject matter; and
WHEREAS, the Board finds that due to the volume of local housing stock rendered inhabitable by
the storm, an emergency exists that warrants immediate action by the Board through the emergency
ordinance adoption procedures set forth in F.S. 125.66(3), thereby dispensing with the normal notice
procedures for ordinances adopted under F.S. 125.66(2).
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT:
SECTION 1: Findings.
a. The whereas clauses set forth above are hereby adopted as legislative findings.
b. The Board finds that an emergency exists and invokes the adoption of emergency ordinance
provisions set forth in F.S. 125.66(3).
SECTION 2: TEMPORARY EXEMPTION. Any person or establishment that rents, leases, or lets
for consideration any living quarters or accommodations in any hotel, apartment hotel, motel, apartment
motel, apartment, resort, rooming house, tourist or trailer camp, condominium, or vacation rental home
(hereinafter "short term rental housing ") for periods of six months or less to a bona fide resident of
Monroe County who has been displaced from his or her normal place of residence due to damage caused
by or attributable to Hurricane Irma shall not be liable for the tourist development tax imposed by Section
23 -197 et seq. and tourist impact tax imposed by Section either 23 -178 or Section 23 -179 of the Monroe
County Code only upon satisfying the following conditions:
a. The owner or manager of the short term rental housing provides written documentation to the Tax
Collector that the occupant of that housing during the requested exemption period is a Monroe
County resident displaced from his or her home due to storm damage; and
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b. The rental period is for a tern of at least 34 days,"` or for a shorter term if the owner can produce a
vacation rental permit issued by the local government with permitting authority for that short term
rental housing unit or other documentation that said short term rental housing unit is compliant
with the land development regulations and codes of the municipality where the property is situated
or from the County Planning Department if the property is situated in unincorporated Monroe
County.
SECTION 3 . TAX COLLECTOR'S AUTHORITY. The Tax Collector is authorized to adopt
procedures including creating forms necessary to administer this temporary exemption.
SECTION 4 . LIMITED APPLICABILITY. The temporary exemption from bed taxes is only in place
for the time period the short term rental housing is rented to a resident or residents displaced by the storm
for occupancy by that resident or residents.
SECTION S . EFFECTIVE DATE. This emergency ordinance shall take effect immediately upon
adoption and compliance with the procedures set forth in F.S. 125.66(3).
SECTION 6. SUNSET DATE. This ordinance shall sunset no later than six months after adoption of
this ordinance or upon adoption of a subsequent ordinance rescinding this ordinance, whichever shall
occur first.
SECTION 7. SEVERABILITY. If a Court of competent jurisdiction determines that any section of
this ordinance is unconstitutional or otherwise invalid, the remainder of the ordinance shall remain in full
force and effect.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida,
at a regular meeting of said Board held on the day of 9 2017.
Mayor George Neugent
Mayor Pro Tem David Rice
Commissioner Danny Kolhage
Commissioner Heather Carruthers
Commissioner Sylvia Murphy
(SEAL)
Attest: KEVIN MADOK, Clerk
By:
Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Mayor
MONRO w c oRN
Af`ROV . o 'o
ALL , StgLUNGER,JFt
C UM f ATt ORNEY
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F.S. 125.0104 and M.C.C. § 23 -197 et seq.
W F.S. 125.0108 and M.C.C. § 23-178 for those portions of Monroe County located in the Florida Keys Areas of
Critical State Concern and M.C.C. §23 -179 for those portions of Monroe County located in the Key West Area of
Critical State Concern.
a Since rentals for periods in excess of 181 days are not liable for bed taxes, this ordinance does not apply to rental
agreements for a term in excess of 181 days.
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