Miami-Dade County Food and Beverage Tax for homeless and domestic violence resources and solutions

With the approval of the Florida Legislature, then- Governor Lawton Chiles, and the Miami-Dade County Commission, a one percent (1%) tax was created to be collected on all food and beverage sales by establishments that are licensed by the State of Florida to sell alcoholic beverages for consumption on site, except for hotels and motels. Only businesses that make over $400,000 in gross receipts annually are obligated to collect this tax. The region's tourist economy offered an incentive to target a revenue source that did not rely on local residents, but used tourist and visitor spending to support the tax.

$11.9 million in tax was collected in 2007. The Homeless and Domestic Violence Tax is collected throughout Miami-Dade County with the exception of the cities of Miami Beach, Surfside, and Bal Harbour.

85% of the resulting tax revenue goes to the Miami- Dade County Homeless Trust, and 15% goes to Miami- Dade County for domestic violence centers.

The Miami-Dade County Homeless Trust was also created in 1993 by the Board of County Commissioners and is responsible to administer the proceeds of the tax; to implement the Miami-Dade County Community Homeless Plan; and to serve in an advisory capacity to the Board of County Commissioners on issues involving homelessness.

People who are homeless in Miami-Dade County benefit from the steady source of budget resources to be invested in results that prevent and end homelessness in the region.

Miami Mayor Manny Diaz and Miami-Dade County Mayor Carlos Alvarez benefit from a source of revenue for 10 Year Plans creating housing.

State and local government benefit by having a targeted revenue stream that supports ongoing partnership, planning, and solutions without creating demand for additional appropriations.

The regional community, focused on business opportunity and tourism, benefits by having a dedicated resource to support solutions to homelessness that is linked to the region's economic engine. The tax offered an incentive to target a revenue source that did not rely on local residents, but used tourist and visitor spending to support the revenue stream.

When first enacted, the Food and Beverage Tax produced $6.5 million annually.
In 2007, revenues were $11.9 million. Street homelessness in Miami-Dade County has been decreased from 7,000 to 2,000 people, according to the Trust.

According to the Miami-Dade Trust, "With this dedicated public funding source, we have been able to build a system that has produced more than $300 million in public and private funding in the last 15 years."

With its dedicated revenue stream from the tax, as well as other resources, the Trust has:
- Developed a coordinated outreach, assessment, and placement process for homeless people accessing housing and services in Miami-Dade County;
- Developed over 2,000 permanent housing placements; and
- Provided a source of revenue that supports the Miami-Dade 10 Year Plan.

The targeted Food and Beverage Tax is the result of strategic partnership among State, County, and local partners.

State Support for County Plan. Any County in Florida that is planning to increase its sales tax base has to first gain approval from State lawmakers. With support both from then-Governor Lawton Chiles and the Legislature, the Dade County Commission supported the tax 13-0 in its July 1993 action.

Creation of County Trust Brings Regional Strategies. The Miami-Dade County Homeless Trust was also established in 1993 as a regional strategy to address homelessness. The Trust was created by the Board of County Commissioners to administer proceeds of the food and beverage tax; to implement the Miami-Dade County Community Homeless Plan; and to serve in an advisory capacity to the Board of County Commissioners on issues involving homelessness. The Trust is not a service provider.

Policy initiatives developed by the 27-member Miami- Dade County Homeless Trust Board are implemented by the Trust, which also monitors contract compliance by agencies contracted with the County, through the Trust, for the provision of housing and services for homeless persons.

The Miami-Dade County Mayor is Carlos Alvarez. The Trust is chaired by Ronald L. Book, Esq., Rabbi Solomon Schiff is Vice Chair, and Judge Steve Leifman is Finance Chair. David Raymond serves as the Trust's Executive Director.

Private Sector Partner Brings Solutions.The Community Partnership for Homeless (CPH) is the private sector partner to the County, through the Miami-Dade County Homeless Trust. CPH, under the leadership of Founding Chair, Alvah Chapman, Jr., Chair, Robert Chisholm, and Daniel Vincent, Executive Director, is a not-for-profit charged with siting, construction and operating up to three Homeless Assistance Centers. The Chapman Homeless Assistance was recently profiled in the e-news when the U.S. Conference of Mayors Task Force on Hunger and Homelessness was hosted at the Center by now USCM President and Miami Mayor Diaz, and Center leaders.

Learn more about the Miami-Dade County Food and Beverage Tax: visit the Miami-Dade Homeless Trust, where you can also learn more about the Trust's initiatives.

Learn about the Florida Statute on the Tax: visit the Florida Senate web site.

Learn more about the Chapman Homeless Assistance Center and the visit of the U.S. Conference of Mayors Hunger and Homelessness Task Force: read the e-news.

Learn more about the 50% reduction in homelessness achieved by Mayor Manny Diaz in the City of Miami.

Learn more about Miami-Dade County initiatives, including the County Business Plan.

5 in 5, A Week of Innovations, continues tomorrow with a Special Issue focused on . . . Meeting the Housing First goals of Sacramento's 10 Year Plan using redevelopment tax increment housing funds . . .

Don't miss a single episode during this 5 in 5 Week of Innovations . . . but, if you do, you can always access the Council's "on demand" service and catch up. Just visit our web site at www.usich.gov/innovations

Does your state, city, or county target real estate transfer taxes, interest from escrow accounts, bond and fee revenues, document recording fees, real estate excise tax, condominium conversion fees, contributions from tax-exempt mortgage revenue bond projects, hotel/motel taxes, filing fees, property sales disclosure forms, building permit fees, real estate transfer taxes, impact fee on new commercial construction, tax increment revenues, parking garage proceeds, restaurant tax, inclusionary zoning in-lieu fees, property tax, sales tax, court settlements, or casino revenues specifically to the goals of your 10 Year Plan? Write to use at the Council's Innovations "Inn-box" - 20in20@usich.gov and give us more details.

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