Okaloosa County BOCC — January 18, 2013 — Business Tax Receipts — reading text

73 Eglin Pkwy N.E., Suite 1114 Fort Walton Beach, FL.32548 302 N. Wilson Street, Suite 1014 Crestview, FL 32536 310 Van Matre Ave. Suite 155, Building 210 Eglin AFB, FL 32542 506 Highway 85 North Niceville, FL.32578 Customer Service Processing Center www. OkaloosaTax.com 4012 Commons Dr. West, Unit 122 (850) 651-7300 Destin, FL 32541 BEN ANDERSON OKALOOSA COUNTY TAX COLLECTOR December 19, 2012 Okaloosa County Board of County Commissioners 1804 Lewis Turner Blvd Suite 100 Fort Walton Beach, FL. 32547 Ref: Okaloosa County Ordinance #07-12, Business Tax Receipts Dear Commissioners: The Okaloosa County Board of County Commissioners voted in May 2012 to enact an Equity Study Commission to review the current Okaloosa County Business Tax Rate structure. On July 26°2012, the Equity Study Commission voted to eliminate the current rate structure and create a $35 fee for a business tax receipt. Currently, Okaloosa County receives 47% of the Business Tax Revenue from businesses located in the unincorporated area. The remaining percent is distributed between the municipalities in the county, less our fee. According to Florida Statute 205.0536 Distribution of County Revenues.—‘A county that-establishes a new rate-structure under s. 205.0535 shall retain all business tax revenues collected from businesses, professions, or occupations whose places of business are located within the unincorporated portions of the county”. The fiscal impact of this Statute for Okaloosa County, if the new rate structure is approved by you, the County would receive 80% of the business-tax receipts paid from businesses. located in the unincorporated area. If a new rate structure is approved, the following items will need to be completed: approximately 16,800 records will need to be reviewed and corrected, create a new Business Tax Receipt manual, continued work with Okaloosa County GIS to identify all unincorporated businesses, a new software update will need to be configured, and other updates of Tax Collector Office policy and procedures will need to be implemented. , In order to prepare for the upcoming 2013-2014 Business Tax Renewal period, we are requesting that the Board of Okaloosa County Commissioner’s review the Equity Study Commission’s findings and recommendation, and then adopt the new rate structure. Our Office remains available to meet with each Commissioner or answer any specific questions that may arise. Respectfully, With kind regards, ALM Beran t Anderson Joshua Allen, CFCA, SBTO Benjariin F. Anderson Director of Field Services Tax Collector, Okaloosa County Okaloosa County Tax Collector's Office The State of Florida created this State Constitutional County Office as a separate and independent government entity to.ensure freedom from influence by local or state agencies that have the power ta levy taxes, spend tax dollars and assess property. June 26, 2012 Equity Study Commission Meeting The Equity Study Commission Meeting was cailed to order at 2:00 p.m. at the Water & Sewer Administration Building in Fort Walton Beach, Members present were Commissioner Dave Parisot (non-voting member.) Voting business members include: Kim Christopher; Gloria Frazier; Derek Lott; Brett Hinely; and Todd McGirr. Also present were Ben Anderson, Tax Collector and Josh Allen, Director of Field Services Tax Collector's office. June 14, 2012 Minutes Approved | Gloria Frazier made motion, seconded by Derek Lott, to approve the June 14, 2012 Minutes: Approved 5 yeas. Discussion followed with the following topics: Flat rate across the board; proposal was suggested that the BTR should be $35. Intinerant Business Tax for non-county businesses. Communications; Cox.& Embarq : Ordinance to match State Statute | Municode format for new ordinance i Brett Hinely made motion for the BTR to be a single rate of $35 with one category classification with the County Attorney recommendation and approval, seconded by Todd McGirr. Approved 5 yeas Gloria Frazier made motion to dismiss Itinerant Business tax licensing, seconded by Brett Hinely: Approved 5 yeas 1 Attachment: 1. Draft Ordinance Rate per receipt $35.00 Receipt type Business Tax Receipt (2013-2014) Totals loss froni'miiltiple receipts (Estimated 2,000 receipts)($35 x 2,000) Total projected revenue Total Business Tax revenue from 2012 receipt year Difference from 2012 tax year Projected fiscal impact to OCTC Business Tax income (20% of revenue) ‘e08t pér business tax receipt s 2012 Estimated BTR Disbursement Percentages 2010 Population Okaloosa County 195,346 ocTc Disb Total Cinco Bayou 370 Crestview 21,321 Destin 12,591 Fort Walton Beach 20,355 Laurel Hill 618 Mary Esther 4,033 Niceville 13,248 Shalimar 717 Valparaiso 6,380 Unincorporated 115,713 195,346 Number of receipts 16323 16323 % of Disbursement 20.0000% 0.1520% 8.7320% 5.1560% 8.3360% 0.2530% 1.6520% 5.4250% 0.2940% 2.6130% 47.3870% 100.0000% $ $ $ $ $ $ $ $ $ aoa Total $571,305.00 $571,305.00 $70,000.00 $501,305.00 -$21,990.68 -$4,398.14 -$8,336.58 2012 Total $523,295.68 104,659.14 418,636.54 636.33 36,555,34 21,584.90 34,897.54 1,059.15 6,915.88 22,711.03 1,230.79 10,938.97 198,379.30 523,295.68 2012 Total $523,295.68 $523,295.68 Proposal Total wv $501,305.00 $100,261.00 401,044.00 609.59 35,019.16 20,677.83 33,431.03 1,014.64 6,625.25 21,756.64 1,179.07 10,479.28 190,042.72 501,305.00 Difference $48,009.32 Difference -§21,990.68 -$4,398.14 $17,592.54 -$26.74 -$1,536.18 -$907.07 $1,466.51 -$44.51 -§290.63 -$954.40 -$51.72 -$459.69 -$8,336.58 Per Florida Statute 205.0536; once a new rate structure is implemented, the BOCC will receive 100% (minus TC collection cost) of the tax collected from businesses located In the unincorporated area. BOCC now currently receives 47% Okaloosa County Business Tax Receipt Comparison Report Proposed Reclassification and Restructure of Okaloosa County Ordinance #07-12 (Per F.S. 205.0535) bated May 2012 Presented by Benjamin F. Andersow, Tax Collector § Joshua Allen, Director of Field Services Revised June [6, 2512 73 Eglin Pkwy N.E., Suite 111 Fort Walton Beach, FL 32548 302 N. Wilson Street, Suite 101 Crestview, FL 32536 310 Van Maitre Ave. Suite 155, Building 210 Eglin. AFB,. FL 32542 506 Highway 85 North Niceville, FL 32578 Customer Service Processing Center www. OkaloosaTax.com 4012 Commons Dr. West, Unit 122 (850) 689-5700 (850) 651-7300 Destin, FL 32541 BEN ANDERSON OKALOOSA COUNTY TAX COLLECTOR June 14, 2012 Ref: Okaloosa County Ordinance.#07-12, Business Tax Receipts Dear Equity Study Commission: Our office is actively involved in the collection of Business Tax Receipts on behalf of the County. Recently, we have thoroughly reviewed OC Ordinance #07-12 and have found it to be significantly outdated. Although the effective date is October 1, 1971, we suspect some of the-categories could date back to the early part of the 1900s — item 8. Traveling Medicine Shows, item 12, Dance Halls, and item 29, Telegraph systems, per mile. We have attached FS 205.0535, Reclassification and Rate Structure Revisions. Item 2 allows you to recommend a.classification system and rate structure for business taxes to the Okaloosa County Board of County Commissioners. Our analysis of Ordinance #07-12 concludes it can be updated and reduced to 4 categories from the current 35 categories. We have attached three proposed Options for your review and consideration; these would provide a sound foundation for the Equity Study Commission. This is an opportunity to simplify government for the local Business Owners and the Citizens of Okaloosa County. We are hopeful; the Equity Study Commission can review and forward their recommendations to the Board of County Commissioners by June 29,2012. As you know we typically send out our renewal notices during July for the September 30, 2012 renewal deadline. Mr, Allen, Director of Field Services, is very knowledgeable of Business Tax Receipts; he will represent the Tax Collector Office as an ex officio member of the Equity Study Commission. We remain available to the Equity Study Commission for consultation on various scenarios to assist with their recommendations to the Okaloosa Board of County Commissioners. We look forward to working with you on this important matter. With kind regards, Respectfully, Bi tian Aulus Cn fhe Benjamin F. Anderson Joshua Allen, Director of Field Services Tax Collector, Okaloosa County Okaloosa County Tax Collector’s office (850) 651-7310 office [Allen @OkaloosaTax.com ee ep yer 1.Regulated — This classification shall include all _businesses, professions, and occupations for which a license, certification, competency.card or registration is required by any branch, department, agency or authorized licensing board of the State of Florida and/or Okaloosa County. 2,Non-Regulated - This classification shall include all businesses, professions, and occupations for which a license, certification, competency card or registration is not required by any branch, department, agency or authorized licensing board of the State of Florida and/or Okaloosa County. 3.Public Lodging Establishments - This classification shall include Lodging Establishments, as defined in Chapter 509 of the Florida Statutes. a. “Transient public lodging establishment” means any unit, group of units, dwelling, building, or group-of buildings within a single complex of buildings which is rented to guests more than three times:in.a calendar year for periods of fess than 30 days or 1-calendar month, whicheveris fess, or which is: advertised or held out tothe public as a place regularly rented to guests. b. “Non-transient public lodging establishment” means.any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to. guests for periods of atleast 30-days or 1 calendar month, whichever is less, or which is advertised or held out to the public as.a place regularly rented to guests for periods of at least 30 days or 1 calendar month. 4.Public Food Service Establishments - means any building, vehicle, place, or structure, or any room or division in a building, vehicle, place, or structure where food is prepared, served, or sold for immediate consumption on or in the vicinity of the premises; called for or taken out by customers; or prepared prior to being delivered to another location for consumption. The Proposed Rate Structure and Reclassification Revision : Rate per Recei e@ : cept typ receipt 1. Regulated $35.00 2. Non-regulated $35.00 Regulated (under 525) $25.00 Non-regulated (under $25) $25.00 (per F.S. 205.0535 (3}{a) 3. Public Ladging Establishment 1-50 rooms $50.00 51 or more rooms $150.00 4, Food Service Establishment 1-74 seats © $60.00 75 of more seats $120.00 Totals Minus projected revenue loss from multiple receipts (Estimated 2,000 receipts)($35 x 2,000) Total projected revenue Total Business Tax revenue from 2011 receipt year Difference from 2011 tax year Projected fiscal impact to OCTC Business Tax income (20% of'revenue) Projected fiscal impact to Okaloosa County Business Tax income (47.3870% of revenue minus OCTC percent) Definitions Number of receipts 3851 11808 0 295 199 105 363 224 16845 $134,785.00 $413,280.00 $0.00 $7,375.00 $9,950.00 $15,750.00 $21,780.00 $26,880.00 $629,800.00 $70,000.00 $559,800.00 $29,708.47 $5,941.69 $11,262.36 2011 Total $110,056.75 $354,038.45 $1,723.58 $7,391.25 $18,736.50 $13,830.00 $24,315.00 $530,091.53 eee Difference $24,728.25 $59,241.55 $5,651.42 $2,558.75 ~$2,986.50 $7,950.00 $2,565.00 1. Regulated ~—This classification shall include all businesses, professions, and occupations for which a license, certification, competency card or registration is required by any branch, department, agency or authorized licensing board of the State of Florida and/or Okaloosa County. 2. Non-Regulated - This classification shall