Miami Parking Surcharge

The City of Miami imposes a surcharge for each parking transaction at a parking facility within the City of Miami at the rate of fifteen percent (15%) for each transaction. This surcharge is levied pursuant to the authority granted by Florida Statute § 166.271 and City of Miami Article IX, Sec. 35-341 to 35-347, City Code.

This new ordinance repeals sections 35-341 to 35-347, in its entirety of article IX of the code of the City of Miami, Florida, as amended, ("code") entitled: parking facilities surcharge, and replacing it with new sections 35-341 to 35-347, amending the code providing for the imposition and collection of a parking facilities surcharge at the rate of fifteen percent (15%).

The surcharge is based upon gross revenue, without deduction therefrom for the cost of property bought and/or sold, materials used, labor, service or other cost, interest or discount paid, or any other expense that may be incurred directly or indirectly related to these receipts with the exception of sales taxes. NOTE: According to the Florida Department of Revenue, the Surcharge is subject to sales tax. However, each Operator is advised to consult with his or her own tax advisor regarding sales tax. Additional information may be obtained by accessing the parking surcharge website at www.miamisurcharge.com.

Inquiries relevant to specific business operations not answered in these regulations should be submitted in writing to:

The Parking Network, Inc.
Parking Surcharge Administrator
2650 Biscayne Boulevard
Miami, Florida 33137-4590

_____________________________________________

Principal responsibility for surcharge administration in the City of Miami is held by the Director of the Department of Finance of the City of Miami, Florida.

ARTICLE I – GENERAL PROVISIONS

Section 101- Definitions.

The following words and phrases when used in these regulations shall have the meaning ascribed to them as they may appear in Article IX, City Code, except where the context clearly indicates a different meaning:

a. City shall mean the City of Miami, Florida.

b. Daily shall mean the operation of a facility on any or all of the seven (7) days of the week, inclusive of holidays.

c. Charge, Fee, or Exchange shall mean the consideration paid to and including any and all compensation received or costs imposed, collected or exacted by the Operator for Parking in a Parking Facility including exchange, credit or otherwise.

Charge, Fee, or Exchange also means the consideration paid to the Operator for goods and services ancillary to Parking, if payment for such goods and services is mandatory and not optional to the User's entry into a Parking Transaction. Examples of goods and services that may be considered ancillary to Parking include, but are not limited to, food, beverages, air fresheners, windshield cleaning, car wash, tire pressure checks, jump starts and emergency phone service. The intent of this definition is to impose the Surcharge on all consideration paid by the User as a condition to the entry into a Parking Transaction, irrespective of whether particular components of such consideration are characterized as compensation received or costs imposed for goods and services separate and apart from Parking in an attempt to evade the Surcharge.

d. Finance Department shall mean the City of Miami Department of Finance and/or any Parking Surcharge administrator designated pursuant to Section 35-346(f)(3) and (5) of the City Code.

e. Garage shall mean any building or other structure in which Motor Vehicles may be parked, stored, housed, or kept for a Charge, Fee or Exchange.

f. Gross Revenues shall mean any and all revenue exchange or otherwise, to be determined according to generally accepted accounting principles or other comprehensive basis of accounting, derived directly or indirectly from or in connection with the Parking operation of the Parking Facility, excluding Florida state sales tax, but including the entire amount of compensation in whatever form.

g. Manager shall mean the City Manager of the City of Miami or his or her designee.

h. Motor Vehicle shall mean every self-propelled vehicle operated or suitable for operation.

i. Net Proceeds shall mean the amount of the Surcharge remitted to the City less the allocable cost of procedures to enforce collection of the Surcharge in an amount not to exceed 5%.

j. Operator shall mean any individual, partnership, association, corporation, or other entity which owns, controls, conducts, leases, operates, or causes to be operated a Parking Facility which offers Parking accommodations for a Charge, Fee, or Exchange. The intent of this definition is to place the burden for collection of the Surcharge on the owner of the facility in addition to the individual or entity which operates the Facility if different from the owner.

k. Article IX means Article IX, Sec. 35-341 et seq., City Code, Ordinance 11813, the City of Miami Parking Facilities Surcharge Ordinance.

l. Parking shall mean the parking, storing, housing or keeping of a Motor Vehicle.

m. Parking Facility shall mean any use in whole or in part of any space, plot, place, lot, parcel, yard, enclosure, Parking Lot, Garage, street (only if used in conjunction with a Valet Parking Service), building or structure that is open to the general public at which Motor Vehicles may be housed, stored, kept, or parked for which any Charge, Fee or Exchange is collected.

n. Parking Lot shall mean any outdoor area or space where Motor Vehicles may be parked, stored, housed or kept for a Charge, Fee or Exchange.

o. Parking Surcharge Administrator shall mean the person or entity retained by the City to administer the Surcharge pursuant to Section 35-346(f)(3) and (5), City Code.

p. Place of Operation shall mean any use in whole or in part of any space, plot, place, lot, parcel, yard, enclosure, Parking Lot, Garage, street (only if used in conjunction with a Valet Parking Service), building or structure that is open to the general public at which Motor Vehicles may be housed, stored, kept, or parked for which any Charge, Fee or Exchange is collected that is required to have an occupational license.

q. Surcharge shall mean the Parking Facilities Surcharge expressed as a percentage or in dollars levied pursuant to Article IX and Florida Statute § 166.271.

r. Surcharge Payer shall mean either the Operator or the User.

s. Transaction shall mean the parking, storing, housing or keeping of a Motor Vehicle in a Parking Facility, in the City, for a Charge, Fee or Exchange.

t. User shall mean any person who drives a Motor Vehicle to, into or upon a Parking Facility for the purpose of parking or storing such vehicle for any length of time. User also means any person who has a vehicle taken from him or her by another to be parked or stored at a nonresidential Parking Facility.

u. Valet Parking Services shall mean: Parking accomplished through a Valet Parking Service. Fee paid for space in parking facility where the valet stores their vehicles. Hourly fee paid to hire valets to park vehicles. Fee paid, if any, by the vehicle operator to the valet for the valet parking services. Gross receipts from the above mentioned parking transactions are subject to the parking surcharge.

v. Valet Parking Service shall also mean the placing, locating, or permitting the placing or locating of stands, tables, signage or traffic cones within the public right-of-way or otherwise restricting a portion of the street for the purposes of operating the drop-off and pick-up of vehicles to be parked. To the extent that such definition may be inconsistent with the definition of Valet Parking Service as set forth in section 35-302 thereof, and as may be amended from time to time, the latter shall govern at all times.

ARTICLE II – SURCHARGE RATE

Section 201 – Rate

The rate of the Surcharge beginning October 1, 204 is fifteen percent (15%).

Section 202 – Levy

a. A Surcharge is imposed upon each User entering into a parking transaction, at a rate of fifteen percent (15%) for each such transaction, which Surcharge shall be collected by the Operator from the User, and shall be paid to City of Miami Finance Department pursuant to Article IX. The Operator of the Parking Facility is responsible for the collection and transmittal of the Surcharge.

b. Any Operator required under Article IX to collect the Surcharge and who fails to do so shall be liable for the Surcharge upon the full consideration received from the User.

c. Operators shall allow the City and The Parking Network (Parking Surcharge Administrator) auditors, during regular business hours after reasonable notice, to audit, inspect, observe and examine the Operator’s fiscal books, records and tax returns, insofar as they relate to the Surcharge, to confirm the Operator’s compliance with Article IX.

ARTICLE III – LICENSES & PERMITS

Section 301 – Occupational License & Certificate of Use

Every Operator who operates a nonresidential Parking Facility shall obtain an occupational license and a certificate of use from the City before commencing operation of the Parking Facility. Licenses and certificates of use are not transferable among Operators nor can they be transferred from one Parking Facility to another. Any Operator who ceases to conduct the operation of a Parking Facility shall notify the City and The Parking Network in writing within 30 days of the cessation of the Parking Facility.

ARTICLE IV – RECORDS AND COMPLIANCE

Section 401 – General Requirements

a. Each Operator shall maintain separately for each Place of Operation having separate ingress and egress, complete and accurate records of all transactions, reflecting the total amount of consideration received from all transactions and the total amount of Surcharge collected on the basis of such consideration received. Records to be kept shall consist of, if applicable, but are not limited to:

1.      A monthly daily revenue summary showing the starting and ending ticket number, and/or transaction number, if applicable, for each series, the amount of tickets sold at each representative price and the amount of Surcharge collected.

2.   A monthly summary of all monthly parking sales reports for each facility including lists of active cards or valid hangtags, new card/hangtag issued, and deactivated card / hangtag.

3. Unused monthly card / hangtag inventory, monthly card / hangtag inventory purchase records.

4.   A monthly validation / coupon summary showing the starting and ending number, if applicable, for each series, the amount of validations / coupons sold at each representative price and the amount of Surcharge collected.

5.   A monthly special events summary showing the starting and ending ticket number, and/or transaction number, if applicable, for each series, the amount of tickets sold, rates, and dates of events.

6. Hotel's folio account report.

7. Parking Aged trial balance report for all locations.

8. Bank Deposit slips and Bank Statements for each location.

9.      Occupational License and certificate of use for current period.

10.   Where master meters are used, accurate records of all money collected shall be kept.

11.      Other records may be required by the Finance Department and/or The Parking Network that fall within the guidelines of generally accepted accounting principles or other comprehensive basis of accounting.

b. Preservation of records. All books, records, daily record sheets and ticket stubs shall be retained by the Operator of a Parking Facility in accordance with record retention regulations required by the Florida Sales Tax Regulations.

Section 402 – Evidence of Parking Transactions

Manually Issued Tickets.

a.       A numbered and dated ticket, issued in serial number sequence, shall be utilized. Numbers on additional ticket purchases will be continued numerically.

b.      Where an Operator conducts business at more than one location, a separate set of numbered tickets will be issued at each location.

Mechanically Issued Tickets.

a.       Tickets shall be issued to all Users in serial number sequence and/or transaction number sequence, showing the date and time of entry.

b.      Tickets shall be arranged so that part of each ticket, showing the parking period and charge, if applicable, is retained as part of the Operator’s records.

When consideration in a transaction is not separately stated, the Operator shall maintain evidence and records necessary to segregate the consideration applicable to the transaction for the benefit of the User and the City, and so that the proper amount of Surcharge may be determined and collected.

Section 403 – Posting of Ratesand Regulations¹

a.         At a minimum, every Operator will post and maintain in a conspicuous place, at each entrance, a sign or signs, printed in letters of such uniform size and character as to be easily read by prospective Users, showing the Operator’s name, lot address, Operator’s occupational license number and a schedule of rates according to one of the described methods listed below:

Example A: A complete schedule listing the total charge to the patron with the parking surcharge and sales tax included and wording indicating that amounts include sales tax and surcharge.

1 Hour -$1.00

2 Hours - 1.75

3 Hours - 3.00

All Day Parking - 4.50

Special Events - 5.00

Monthly Leases - 65.00

Annual Leases $600.00

“All amounts include City of Miami Parking Surcharge (15%) and Florida State Sales Tax (7.0%)”

Example B: A complete schedule listing the parking fee, the parking surcharge, applicable sales tax and the total charge to the patron:

Category Fee + Surcharge + Sales Tax = Total

1 Hour $.81 $.12 $.07 $1.00

2 Hours 1.63 .24 .13 2.00

3 Hours 2.44 .36 .20 3.00

b.         In addition to rates, all signs shall contain the following language: “The Surcharge imposed by this Parking Facility is enacted pursuant to Article IX, Sec. 35-341 et seq., City Code and Parking Surcharge Regulations, copies of which can be obtained at Miami City Hall and at the Parking Surcharge website www.miamisurcharge.com.”

Section 404 - Violations

a.                  Whenever any Operator fails to collect or remit to the City the Surcharge imposed within the time limit therefore, the City shall assess the Operator the amount of Surcharge due, plus interest at the rate of one percent (1%) per month or any fraction thereof, and a penalty of ten percent (10%) of the Surcharge due on uncollected or unremitted amounts.

b.                 Whenever any Operator fails to keep records from which the Surcharge may be accurately computed, the Manager may make use of a factor developed by surveying other Operators of a similar type Parking Facility, or otherwise compute the amount of Surcharge due, and this computation shall be prima facie correct.

c.                  In addition, an Operator of a Parking Facility who fails to comply with Article IX and/or Regulations shall be subject to the penalties described in Article IX.

Section 405 - Scofflaw Provisions

a.                Definition: Scofflaws shall mean any operator that meets any of the criteria mentioned below:

            1. Has outstanding surcharge payments for three months or more.

            2. Has outstanding penalty and interest payments for three months or more.

             3. Fails to maintain complete and accurate records as stipulated by the ordinance.

             4. After been identified as an operator of a paid parking facility, and has received at least two notifications regarding the compliance with the ordinance and still fails to comply.

            5. Any operator who has failed to comply an audit request after all efforts to schedule have been exhausted.

b.                 Additional Reporting Requirements For Scofflaws:

            1. The operator of the parking facility will be required to register their parking tickets with the manager.

            2. The operator of the parking facility will be required to complete and submit a "Parking Surcharge Recap Monthly Report" in addition to the regular monthly remittance report.

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[1] / Neither the City of Miami nor The Parking Network can verify, confirm or otherwise support the decision of any Operator whether or not to collect or remit Florida Sales Tax. The methods and illustrations provided are for the purpose of calculating the City’s Parking Surcharge based upon parking fees charged. Any decision regarding collection and/or remittance of Florida Sales Tax is made at the Operator’s own risk and should be based upon information provided by the Florida Department of Revenue and/or any advice received from an independent tax consultant.

ARTICLE V – REGISTRATION, RETURNS, PAYMENTS AND COLLECTION

Section 501 – Required Forms

a.       Registration Form. Each Operator, on forms prescribed by the Manager, shall annually register with the Parking Network for the operation of a Parking Facility within the City limits and at which time will be assigned a property identification number. The forms shall, at a minimum, include the following information:

1.      Company, Facility, Operator and Owner identifying and contact information;

2.      Rate information for each category of activity on the registration form. The City is to be notified in writing of any change in such rates within seven (7) days of any change;

3.      Detailed schematic or drawing of parking facility perimeters including the names and/or numbers of the streets bordering the facility indicating all entrances and exits for each Parking Facility. The City shall be notified of any alterations made to any location by way of a revised drawing within seven (7) days of any alteration.

b.      Return Form. Each Operator, on forms prescribed by the Manager, shall file by the twentieth day of each month, returns for the preceding month showing the consideration received with respect to each Parking Facility during the preceding month together with the amount of Surcharge due and collected thereon. At the time of filing the return, the Operator shall pay to the Finance Department all Surcharge due and collected for the period to which the return applies. The Surcharge due and collected is levied on and shall include, but is not limited to, all hourly, daily, weekly, monthly, yearly, evening, event, validation programs, valet, lease and prepaid amounts charged and collected by every Operator. Each Operator shall collect the Surcharge imposed by Article IX and shall be liable to the City of Miami as an agent thereof for payment.

1.      Individual payment return forms shall be required for each Parking Facility and when filed with the payment of any Surcharge due, shall provide the information thereon as follows:

(a) Property identification number, assigned by the City upon registration;

(b)   Operator’s Occupational License number;

(c)    Operator’s Certificate of Use number;

(d)   Period for which the Surcharge is remitted;

(e)    Due date for the period for which the Surcharge is   remitted;

(f)     Total monthly Gross Revenues of each category of transactions. Categories would include, but are not limited to daily, lease, validation, event, meter / coin and other amounts;

(g)      Surcharge collection calculation;

(h)      Operator’s name and mailing address;

(i)        Parking Facility location;

(j)       Signature of Surcharge payer or agent.

c. Parking Surcharge Recap Monthly Report. Each Scofflaw Operator, on forms prescribed by the Manager, shall file by the twentieth day of each month, a Parking Surcharge Recap Monthly Report in addition to the returns for the preceding month showing the consideration received with respect to each Parking Facility during the preceding month together with the amount of Surcharge due and collected thereon. The forms shall, at a minimum, include the following information:

(a)    Property identification number, assigned by the City upon registration;

(b)    Period for which the Surcharge is remitted;

(c)    Total monthly Gross Revenues of each category of transactions. Categories would include, but are not limited to transient (daily), valet, event, monthly lease, and other amounts.

d. The City may require additional information when necessary for auditing purposes.

e.      Forms for said returns may be obtained from The Parking Network or the website www.miamisurcharge.com. Surcharge payment and forms must be forwarded to: City of Miami, P.O. Box 862634, Orlando, Florida 32886-2634. Failure to obtain or receive the necessary forms will not excuse the Operator for failure to file a return and pay the Surcharge due and collected in a timely manner.

f.       Where an Operator is an individual, he or she shall personally sign the return; if a partnership, a signature of one general partner is required; if a corporation, the return shall be signed by the officer of the corporation authorized to file Surcharge returns.

g.        If an Operator operates more than one Parking Facility, each place of operation must be registered with the Parking Network, and a return for each individual place of operation is required to be filed with the data to each, separately reported for every month and part thereof of said activity.

h.       A return will not be considered filed unless the Operator complies with all the above provisions pertaining to filing of returns and includes all the information requested on the prescribed forms.

Section 502 – Payment of Surcharge

Each Operator, on forms prescribed by the City, shall file by the twentieth day of each month, returns for the preceding month’s transactions and shall include the payment of the Surcharge due and collected. Payments shall be made by check or money order drawn to the order of the City of Miami.

Section 503 – Acceptance of Surcharge Return

a.       Retention of the return filed by the Operator and/or negotiation by the City of the payment tendered therewith, does not constitute a final acceptance by the City of the accuracy or completeness of the Surcharge payment. The City may also elect to treat any such filing and/or payment as a partial disposition of the Operator’s liability.

b.      The City reserves the right to make spot checks of returns filed, to make such corrections as appear necessary upon the face of the return, to submit additional billings or request added information, and to make refunds or credits based on the self-assessed returns without accepting as final any document or payment arising from such cursory examination.

c.      All returns received, payments negotiated, credits applied or refunds remitted are conditional. Acceptance is final only after a duly approved audit or by operation of law.
Section 504 – Collections and Interest

The City may collect all unpaid Surcharges, interest, costs, fines and penalties due under Article IX by using any available legal or equitable action. Whenever any Operator fails to collect or remit to the City the Surcharge imposed within the time limit, the City may assess the Operator the amount of Surcharge due, plus interest at the rate of one percent (1%) per month or any fraction thereof, and a penalty of ten percent (10%) of the Surcharge due on uncollected or unremitted amounts.

ARTICLE VI – SURCHARGE PAYER’S REMEDIES

Section 601 – Request for Review

a.       Any Surcharge Payer who believes that the Surcharge or a related interest or penalty is improper, incorrect or illegal, may apply for a refund by requesting a review of the Surcharge with the Parking Surcharge Administrator within one year of the date of payment of the Surcharge. The request shall be in writing and verified, stating under penalty of perjury the specific grounds upon which the claim is founded. An address for notification of the Payer shall be provided.

b.      The Parking Surcharge Administrator shall review the request and render a decision within thirty (30) days of receipt of the request. The findings of the Parking Surcharge Administrator shall be served or mailed to such Surcharge Payer at the address provided.

c.      Any Surcharge Payer aggrieved by the decision of the Parking Surcharge Administrator may, within thirty (30) days after receipt of such decision, serve a written appeal upon the Parking Surcharge Administrator. In the written appeal, the Surcharge Payer may request a hearing before a Hearing Officer. The appeal shall state the specific grounds upon which it is based. If the Surcharge Payer requests a hearing, the Hearing Officer shall fix a time and a place for hearing such appeal and give notice in writing by service or mail to the Surcharge Payer at the address provided by the Surcharge Payer. No hearing or appeal will operate to suspend the accrual of any penalty and interest from the date the Surcharge was due to the date it is actually paid. The Hearing Officer will render a decision within 60 days of receipt of the written appeal if no hearing is requested and within 30 days of the hearing if a hearing is requested. The findings of the Hearing Officer shall be served on the Surcharge Payer in the manner prescribed in this section for service of a notice of hearing.

ARTICLE VII – COMPUTATION OF SURCHARGE

Section 701 – Surcharge Calculation

The City will accept payment of the surcharge employing one of the techniques listed below to compute the Surcharge and must be consistent in each Surcharge reporting period.

Technique A: Where total collections include the parking charge plus the parking surcharge, the total collections are multiplied by the reciprocal surcharge rate of .130435.

            Example of Technique A:

Total Collections
(Total includes Parking Revenue less sales tax)

x Reciprocal Surcharge Rate

= Parking Surcharge Due

$6,000.00 x .130435 $ 782.61

$5,850.00 x .130435 $  763.04

Technique B: The surcharge total taken from the individual cash register tapes showing the parking fee, the surcharge charged, the sales tax charged and the total collected; or individual surcharge records for each ticket showing the complete transaction.

Technique C: Where individual surcharge collection records are not kept for each ticket, fifteen percent (15%) of the entire parking fee paid by the customer will be collected.

Example of Technique C:

Parking Fee
(less sales tax)

x Surcharge Rate

= Parking Surcharge Due

$1,000.00 x 15% $150.00

$1,550.00 x 15% $232.50





Technique D: Where individual Surcharge collection records include the parking charge, sales tax & Surcharge, divide by reciprocal of sales tax and Surcharge rate and then multiplied by Surcharge percentage.

Example of Technique D:

Parking Fee
(includes sales tax & surcharge)

/ Sales Tax / Surcharge x Surcharge %

= Parking Surcharge Due

$5,000.00 /1.070/1.15x15% $   609.50

$6,580.00 /1.070/1.15x15% $   802.11

ISSUED PURSUANT TO THE CITY OF MIAMI PARKING FACILITIES SURCHARGE

Introduction

Article I – General Provisions

Article II – Surcharge Rate

Article III – Licenses & Permits

Article IV – Records and Compliance

Article V – Registration, Returns, Payments, and Collections

Article VI – Surcharge Payers’ Remedies

Article VII – Computation of Surcharge

INTRODUCTION

Section 101- Definitions.