December 23, 2009 Update

On December 18^th, Circuit Judge Michael Jones ruled in favor of the taxing officials and against all but the original eight parcels involved in the 1980’s case of Bell v. Bryan. We recognize that some of the legal issues can be hard to understand. A letter will be mailed to the plaintiffs in early January with a more detailed explanation of our legal strategy going forward. A copy of the judge’s 49 page decision can be viewed from the home page of this web site.

Judge Jones found in our favor on 8 out of 11 legal arguments, but that is small consolation since he ultimately concluded that he was required to follow the law declared by the appeal court in 2005 in the case of Ward v. Brown that involved similar taxation issues on Navarre Beach in Santa Rosa County. We believe that Judge Jones should have followed the ruling of the same appeal court in the 1987 Bell v. Bryan case that concluded that Pensacola Beach leasehold improvements could not be taxed at the local real property ad valorem tax rate. In fact, the judge did rule in our case that the present lessees of the eight parcels involved in the Bell v. Bryan case are not subject to county taxation, because the taxing officials had already litigated against these parties or their predecessors on the leases and lost.

Our attorneys have today filed a Motion for Rehearing and a copy of that motion can also be viewed from the home page.

This motion asks Judge Jones to reconsider his ruling on the merits and to clarify two additional issues concerning the sale of tax certificates on leasehold land and the interest rate on legally contested taxes. Prior to the judge’s ruling, the Tax Collector’s Office had been extracting the delinquent tax rate of 18% from any of the Plaintiffs who paid their taxes. Some had to pay them to satisfy mortgage lenders, etc. As of today, the Tax Collector’s web site indicates the interest rate she will charge now is 12%, which is set by Florida statute. The 6% difference in the interest rate constitutes an unjust penalty, and we believe the judge has the power to require refunds in these instances. A hearing on this motion will be set, hopefully in the not-too-distant future.

The statute that prohibits any effort by the Tax Collector to enforce the taxes remains in effect throughout the remainder of the case, including appeals. If you pay now (or have paid) and we ultimately prevail, Florida Statutes have a procedure for obtaining a refund.

If the judge denies the motion for rehearing as to the merits of the case, we have the option to appeal to the First District Court of Appeal. We have 30 days to file a Notice of Appeal from the date Judge Jones enters a written order ruling on the Motion for Rehearing. Look forward to more details in the confidential memorandum that will be mailed to plaintiffs.

Please check this web site periodically. It provides the most efficient means of communication, particularly with time sensitive matters. You can email your questions to beachtaxes@gmail.com or contact a member of the liaison committee.