Flores v. City of Miami

681 So. 2d 803, 1996 Fla. App. LEXIS 10447, 1996 WL 577148
CourtDistrict Court of Appeal of Florida
DecidedOctober 9, 1996
DocketNo. 95-2021
StatusPublished
Cited by2 cases

This text of 681 So. 2d 803 (Flores v. City of Miami) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flores v. City of Miami, 681 So. 2d 803, 1996 Fla. App. LEXIS 10447, 1996 WL 577148 (Fla. Ct. App. 1996).

Opinion

JORGENSON, Judge.

We review the circuit court’s order upholding the constitutionality of a City of Miami ordinance regulating vending on public streets and sidewalks and denying permanent injunctive relief. For the following reasons, we affirm.

In January 1995, the City of Miami, by ordinance, established the Downtown Miami Special Vending District, which limits street vending to those vendors awarded franchises by lottery. Vendors must obtain $1 million in liability insurance before they can partid-[805]*805pate in the lottery. For the lottery winners, the ordinance requires franchise fees, hold harmless agreements, insurance, tax certificates, and compliance with applicable local and state regulations. Further, the ordinance sets forth specifications for vending pushcarts, and contemplates the city purchasing conforming carts with franchise revenues and then leasing them to the vendors.

Plaintiff Elsa Marina Zelaya Flores vends hot dogs from a push cart on the streets of downtown Miami. Plaintiff United Vendors of South Florida is an unincorporated association that is affiliated with the Amalgamated Clothing and Textile Workers Union, which purports to represent the interests of Miami street vendors. In June 1995, these plaintiff vendors filed a complaint seeking temporary and permanent injunctive relief against the city regarding enforcement and implementation of the ordinance. On the vendors’ motion for injunctive relief, the trial court upheld the constitutionality of portions of the ordinance providing for franchise fees and requiring liability and property insurance coverage, but temporarily precluded the city from implementing and enforcing these provisions until the trial court could conduct an evidentiary hearing to determine the reasonableness of the fees and coverage limits. The vendors appealed.

The vendors argue that the ordinance is an ultra-vires attempt by the City of Miami to impose an unconstitutional tax upon street vending, couched within a purported regulatory scheme. They point, for example, to the provision of the ordinance dividing downtown Miami into three separate vending areas with a graduated fee schedule that corresponds to the respective profitability of each of the areas;1 and the alleged general economic benefits the city will obtain through leasing pushcarts that conform to the specifications of the ordinance. We disagree.

The ordinance provides that

[f]ees collected under this subsection are for franchises granted for the exclusive right to use a portion of the public right-of-way, and are in addition to other permit fees and occupational license taxes imposed by law.
All franchise fees collected pursuant to this section shall be placed in a special account established for the “Downtown Miami Special Vending District” by the City of Miami’s Director of Finance, and shall be utilized exclusively by the Executive Director, upon approval of the [Downtown Development Authority] Board of Directors, for the administration of this district, its management services and purchase or replacement of pushcarts and/or related equipment.

The Florida Constitution circumscribes a municipality’s ability to generate revenue through taxes, and Florida law does not provide for taxation of street vendors. See Art. VII, § 1(a), Fla. Const. Nonetheless, a municipality has the power to safeguard and maintain the character of its streets, sidewalks, and all other common grounds for the benefit of the general public through regulation. State ex rel. Nicholas v. Headley, 48 So.2d 80, 81 (Fla.1950); Lloyd Enters., Inc. v. Department of Revenue, 651 So.2d 735, 741 (Fla. 5th DCA 1995) (Sharp, J., concurring); City of Key West v. Marrone, 555 So.2d 439 (Fla. 3d DCA 1990). The number of vending carts permitted to consume public space in congested areas may be validly limited. City of Key West v. Marrone, 555 So.2d 439 (Fla. 3d DCA 1990); see also City of New Orleans v. Dukes, 427 U.S. 297, 96 S.Ct. 2513, 49 L.Ed.2d 511 (1976); State ex rel. Pennington v. Quigg, 94 Fla. 1056, 114 So. 859 (1927). Such limitations on competition will likely augment the economic value of a permitted vendor’s franchise — more so in areas of higher profitability. The city is entitled to exact a higher fee for granting use of this more valuable public property. See City of Plant City v. Mayo, 337 So.2d 966 (Fla.1976); Santa Rosa County v. Gulf Power Co., 635 So.2d 96 (Fla. 1st DCA), cause dismissed sub nom. Escambia River Elec. Co-op., Inc. v. Santa Rosa County, 641 So.2d 1345 (Fla.1994), and rev. denied, 645 So.2d 452 (Fla.1994); Jack[806]*806sonville Port Auth. v. Alamo Rent-A-Car,. Inc., 600 So.2d 1159 (Fla. 1st DCA), rev. denied, 613 So.2d 1 (Fla.1992).

This graduated scheme of franchise fees is not a tax:

The United States Supreme Court distinguished between a tax and a user fee, defining a tax as providing revenue for the general support of the government, while defining a user fee as imposing a specific charge for the use of publicly-owned or publicly-provided facilities or services. Commonwealth Edison Co. v. Montana, 453 U.S. 609, 621-622,101 S.Ct. 2946, 2955, 69 L.Ed.2d 884, 896-897 (1981). The Florida Supreme Court has defined it thusly:
In common parlance, a tax is a forced charge or imposition, it operates whether we like it or not and in no sense depends on the will or contract of the one on whom it is imposed.
State ex rel. Gulfstream Park Racing Ass’n v. Florida State Racing Comm’n, 70 So.2d 375, 379 (Fla.1953) [citations omitted].

Jacksonville Port Auth., 600 So.2d at 1162. Two 1976 Florida Supreme Court decisions addressed whether fees imposed by municipalities were invalid taxes or valid regulatory fees. In Contractors & Builders Ass’n v. City of Dunedin, 329 So.2d 314 (Fla.1976), building contractors and landowners challenged a municipal ordinance that charged an impact fee for the privilege of connecting to the city’s water and sewer system.

Plaintiffs contended that the portion of the monies collected that was earmarked for capital improvements to the water and sewer system as a whole2 constituted taxes which the municipality is forbidden to impose in the absence of enabling legislation. The Court noted that in general, connection fees are not taxes but are analogous to fees collected by private utilities for services rendered. Nonetheless, the connection fees at issue were invalid because the ordinance provided insufficient restrictions on their use:

The failure to include necessary restrictions on the use of the fund is bound to result in confusion, at best. City personnel may come and go before the fund is exhausted, yet there is nothing in writing to guide their use of these moneys, although certain uses, even within the water and sewer systems, would undercut the legal basis for the jund’s existence. There is no justification for such casual handling of public moneys and we therefore hold that the ordinance is defective for failure to spell out necessary restrictions on the use of the fees it authorizes to be collected.

Id.

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Cite This Page — Counsel Stack

Bluebook (online)
681 So. 2d 803, 1996 Fla. App. LEXIS 10447, 1996 WL 577148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flores-v-city-of-miami-fladistctapp-1996.