SAVE Dade hails passage of Miami Beach tax equity

Today SAVE Dade welcomed the passage of a first-of-its-kind ordinance providing for reimbursement of taxes on health benefits to city employees in domestic partnerships.  The move was hailed as another step forward for a city that in recent years has put itself ahead of the curve when it comes to LGBT issues.

“This ordinance finally puts city employees in domestic partnerships, whether same- or opposite-sex, on a level playing field with couples in legally recognized marriages when it comes to paying taxes on health benefits,” said SAVE Dade Executive Director CJ Ortuño. 

Because the federal government determines the tax policy in question, the new city ordinance does not altogether remove the tax liability for municipal employees in domestic partnerships but rather provides for a workaround.  The new policy states that taxes on health benefits paid by employees in domestic partnerships will be reimbursed by the city.  Effectively, the City of Miami Beach will foot the bill for employees in domestic partnerships suffering under an unequal tax code on the federal level.

“Before this vote, the policy on the books forced city employees in domestic partnerships to pay taxes that those in marriages did not have to pay.  In effect it meant that city employees in domestic partnerships lost wages worth upwards of $1,000 every year.  The new policy corrects that inequality,” explained Ortuño.  “We applaud the City of Miami Beach for taking a bold step in the right direction.”

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