Customers pick up tab for Durbin Park infrastructure fees

Article Courtesy of The St. Augustine Record

By Stuart Korfhage

Published November 26, 2018

  
Shoppers at the recently opened Durbin Park shopping center might notice that they’re paying a little extra for their purchases.

That’s because the stores there are adding an extra 0.5 percent as part of its Community Development District responsibilities. Some shoppers were confused at first because their receipts seemed to show extra sales tax.

And that’s understandable since the rate has changed in recent years here and in Duval County. The sales tax rate is 6.5 percent here and 7 percent in Duval.

However, St. Johns County administration has been quick to point out the extra 0.5 percent isn’t a tax that goes back to the county but a fee that only applies to Durbin Park and goes to infrastructure for that development.

According to a statement from the county public affairs department, the fee was “initially mislabeled as a tax on sales receipts” from the Walmart in Durbin Park. It was the first store to open in the large development near the Duval County line.

“The incorrect terminology misled the community to believe the tax rate in St. Johns County has increased or an additional tax has been levied,” the county statement said. “The tax rate within the county remains 6.5 percent, and no funds collected from the DP1 Community Development District Public Infrastructure Fee are collected by the County.

“St. Johns County has contacted the DP1 CDD and requested that the fee be labeled correctly on future receipts in order to provide transparency and ensure patrons clearly understand that the CDD is collecting the fee and for what purpose.”

Since that early problem, Walmart has amended the wording on its receipts to reflect the proper explanation, stating that the extra charge is “Public Infrastructure Fee.”

But does that clear things up for everyone? Probably not.

Those who live in newer developments are probably familiar with CDD fees because many communities levy them on homeowners to pay for the construction of roads and other infrastructure to establish the neighborhood. The fees are separate from homeowners’ association charges that usually pay for landscaping or upkeep on amenities.

The county land development code states: “The intent of a CDD within St. Johns County is to encourage a strong commitment to capital facilities planning, management and financing to ensure the provision of adequate capital infrastructure to service projected growth without overburdening the general taxpayer.”

In other words, only those who will regularly use the infrastructure built through a CDD will have to pay for it.

The Durbin Park CDD was established by the County Commission, as is required, on June 28, 2017, to fund: “the construction, operation and maintenance of stormwater; water, reuse, and sewer facilities; street lighting and other applicable electric facilities; entry monuments, common features, parking, landscaping, recreation; and on and off-site roadways.” The total cost was estimated at $24.7 million.

The CDD does not just pay for roads within the shopping center. It also pays for improvements to the following roads: Race Track Road from Bartram Park Boulevard to U.S. 1; and East Cummer Parkway (aka East Peyton Parkway) from the State Road 9B interchange to Race Track Road.

The Commission did not grant a specific right to charge customers at businesses in the development of the CDD fee. However county officials pointed out that, by state statute, the “DP1 CDD has the sole authority to impose a Public Infrastructure Fee (PIF) within the district and may do so completely independent of authorization by the Board of County Commissioners.”

According to the county staff, Durbin Park is the only commercial development to pass the CDD costs directly to retail customers.

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