Appeals court strikes down Miami Beach’s $20,000 fines for illegal vacation rentals
The steep fines the city of Miami Beach imposes on illegal vacation rentals is in violation of state law, an appeals court ruled Wednesday, affirming the opinion of a lower court and striking down what is considered to be the harshest fine structure any local government has imposed to crack down on short-term rentals.
City Attorney Raul Aguila will recommend that the city amend its short-term rental ordinance to lower the fines, which start at $20,000 for the first violation and can increase to $80,000 for a fourth violation before reaching $100,000 for subsequent offenses.
Florida Statute states that a city’s fines “shall not exceed $1,000 per day per violation for the first violation, $5,000 per day per violation for a repeat violation, and up to $15,000 per violation if the code enforcement board or special magistrate finds the violation to be irreparable or irreversible in nature,” according to the ruling issued by the Third District Court of Appeal.
The city “must abide by the statutory caps,” the ruling states. The court upheld the 2019 decision of a Miami-Dade circuit judge in a lawsuit filed by Miami Beach resident and short-term rental host Natalie Nichols.
“The city is disappointed by the court’s ruling, and respectfully believes that it is mistaken,” Aguila said in a statement. “The city maintains that its short-term rental fines comply with all applicable laws, and intends to seek further review of the decision as permitted by the court’s rules. In the meantime, the city’s short term rental laws remain in full force and effect.”
Since October, when the court struck down the fine structure, Miami Beach has issued 86 violations under its short-term rental ordinance, a spokeswoman said.
The city will continue to enforce its ordinance because the lower court’s ruling is stayed, or suspended, until the appellate court’s decision is final, Aguila said. The city’s legal options include seeking a rehearing from the appellate court. If that fails, Aguila said, the city could request the Florida Supreme Court to review the case.
In a memo to Mayor Dan Gelber and the City Commission, Aguila said he would soon provide a legal opinion on whether the city should amend its existing fine schedule to conform with state law.
“I think we should,” he wrote.
Nichols, who is represented by libertarian think tank The Goldwater Institute, sued the city in 2018, challenging both its fine structure and the near-ban of short-term rentals in the city.
Goldwater attorney Matt Miller said he understood Wednesday’s decision to invalidate not only the city’s fines, but the short-term rental ban itself.
“We hope this victory will be a light at the end of the tunnel for Miami Beach property owners, who have had a very rough time under these restrictions,” he said in an email.
The ruling does not explicitly state that, and Aguila said he does not believe that is the case.
“The decision doesn’t provide either side with the absolute clarity it hoped to get,” Aguila told the Miami Herald. “The entire opinion focuses on the fines, which is why I strongly disagree that it strikes down the entire ordinance.”
This story was originally published July 22, 2020 at 6:27 PM.
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