IMPLICATIONS OF TAXES AND FEE SIMPLE TITILE

Pensacola Beach Citizens Forum – May 12, 2008

Presented by Jim Cox, Beach Resident

Two weeks ago, there was a joint meeting of the Escambia County BOCC and the Santa Rosa BOCC. At that meeting, they voted ( with Escambia County Commissioners Grover Robinson and Kevin White voting in the negative) to petition US Congressman Jeff Miller to ask Congress to amend the 1947 conveyance of the lands on Santa Rosa Island (namely Pensacola Beach and Navarre) to allow the Counties to be able to convey fee simple title to leaseholders.

They did this to help solve all of the “uncertainties” which current leaseholders face due to the taxes that they themselves have imposed.

However, the Counties seem determined to tax both our land and improvements, hence they are proceeding now with the appeal to Jeff Miller to allow them to offer fee simple interest to PB leaseholders.

IF THEY ARE SUCESSFUL, and tax both our land and our improvements, then the SRIA becomes less relevant and will likely be abolished. At that time the County will control all zoning and development on the Island.

The audience was referred to 2 charts with detailed information. They are included and can be seen by going BACK and selecting each of the following:

Summary of lease fees & ad valorem taxes

Three scenarios

On what basis will they transfer us fee simple title? Nothing is in writing at this point. Commissioner Grover Robinson has said he believes that residential leaseholders will be offered fee simple interest for the administrative costs of transfer – Say $500 to $1000. Commercial leaseholders would probably have to pay some amount (based on a formula to be determined) for their land deed.

In the 1970’s, Okaloosa County earned the right to assess ad valorem taxes on leased land on Okaloosa Island. So they eliminated the lease fees, abolished their Island Authority, and taxed both the land and improvements ever since. About 10-12 years ago, they began offering fee simple interest title to Okaloosa Island leaseholders for a minimal ($500 – 600) fee. Interestingly, the County attorneys reported that less than half of the Okaloosa Island leaseholders have requested fee simple title so far.

Last week, the SRIA voted unanimously to petition the Escambia County BOCC to ask that their request to Congressman Jeff Miller regarding the transference of control over Pensacola Beach lands have limitations that would preserve for all time our public areas – this would include our public beaches (including the beaches in front of leased commercial and residential properties), parks, etc and the 372 acres of public land to the east of Portofino.

Many leaseholders, both residential and commercial, will welcome the opportunity to get fee simple title to their land, especially if they have to pay ad valorem taxes on both the land and improvements.

Other leaseholders, while acknowledging the benefits of fee simple ownership, regret that is could come to us with a terrible hidden cost. If Escambia County controls all of the Pensacola Beach land, and has no Congressional limitation to use it in the “public interest”, how can we protect the Beach from overdevelopment in the future? Who will speak out for the Beach against overdevelopment? We’d like to hear your thoughts.