Article Courtesy of Pensacola News-Journal
By Melissa Nelson Gabriel
Published June 5, 2019
Florida's First District Court of Appeal has upheld a
lower court's decision denying the Escambia County School District's
standing to intervene in a dispute between Pensacola Beach leaseholders and
the county's property appraiser.
Thursday's ruling involved a case brought by owners of condominiums in the
Santa Rosa Dunes Complex.
Ed Fleming, an attorney who represented the Santa Rosa Dunes residents and
who has represented hundreds of other beach residents in tax cases against
the county, said the ruling should put an end to legal questions about
whether leased land underneath condominium complexes should be subject to ad
valorem taxes.
"We are obviously pleased with the ruling," he said in a released statement.
Malcolm Thomas, superintendent for the Escambia County School district,
questioned the ruling.
"It is mysterious to me that they would say we do not have standing because
the school district has millions of dollars at stake from all properties in
Escambia county, not just the beach," he said.
Thomas said he did not know what next steps the district might take.
Thomas has previously said the district had $6 million in a reserve account
created to hold disputed taxes. More than 30 condominium homeowners
associations have filed lawsuits questioning the collection of taxes on
leased land.
Pensacola Beach is unique because it was deeded to Escambia County, along
with much of the rest of Santa Rosa Island, in 1947. The deed agreement
prohibited the county from selling the beach land and stated that the land
must be used in a way that benefits the public.
The county decided in the 1950s to develop the beach to bring in tourism
revenue and set up a system of 99-year leases to encourage commercial and
residential development on the island. The county advertised "tax-free"
beach land in publications nationwide.
More: Voters endorsed Pensacola Beach conservation, but group says beach
still unprotected
After Pensacola Beach was heavily developed in the 1980s, the county turned
to the beach as a source of property tax revenue. The move prompted a long
series of lawsuits that continue today.
Complicating the issue is that language in the leases has changed over the
decades. Some leases are open for renegotiation after 99 years and others
are perpetually renewable. The courts have ruled that the perpetually
renewable leases are tantamount to outright ownership and can be taxed,
while the renegotiable leases are not.
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