The City of Miami Beach on Wednesday
became the third Florida municipality to agree to compensate gay city
workers receiving domestic partner benefits for the extra tax they
pay.
Employer-provided health benefits
offered to the partners of gay workers are counted as taxable income
by the IRS (unless the partner is considered a dependent). Such
benefits are not considered taxable income for married heterosexual
employees.
The ordinance, sponsored by
Commissioner Michael Gongora, was unanimously approved by the City
Commission. A friendly amendment submitted last month by
Commissioner Jerry Libbin makes the ordinance effective immediately,
instead of next fiscal year, as originally proposed.
“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,” C.J. Ortuno, a
member of the Miami Beach Human Rights Committee, which backed the
measure, and the executive director of SAVE
Dade, wrote in an email to supporters.
“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
the city employees in domestic partnerships lost wages worth upwards
of $1,000 every year. The new policy corrects that inequality.”
“We applaud the City of Miami Beach
for taking a bold step in the right direction,” he added.