The CDD, which is under the control of the
developer for the first six years of its existence, can make
decisions regarding everything from water management to
transportation to land conservation. By the end of the six-year
period, the developer of the community must transition control
of the CDD to the residents who reside within its boundaries. A
development district may also have a homeowners association,
which primarily deals with deed restriction issues. The two
generally operate independently of each another.
In many instances, the CDD is fully responsible not only for
levying fees on the residents for the provision of services, but
also for collection of the same. Many CDDs in Florida find
themselves in financial straits because they do not have the
legal support of a governmental entity backing up their fee
collection efforts. A viable solution for CDDs to deal with
collection problems has been to partner with county tax
collector offices.
The tax collector has the same enforcement power it has over
other properties on the tax rolls. This virtually guarantees
that the district's fees will be paid. This is realized by the
tax office's ability to sell tax certificates when property
taxes are in default. The enforcement action that can be taken
on behalf of a CDD is only one benefit of the partnership. Since
all parcels within the district are on the tax roll, owners are
able to claim up to the 4 percent discount available to those
who pay their taxes prior to the final due date (the discount is
determined by predetermined payment dates). Additionally, the
district has the potential to receive a portion of any excess
fees collected by the tax office.
Community development districts that have interlocal agreements
with the tax collector — there are 40 of them in Pasco County —
will receive their proportionate share of excess fees for non-ad
valorem collections at the end of the fiscal year. The Tax
Collector's Office sends the CDD a check for excess fees, as
well as suggestions for the CDD to get the word out to the
property owners regarding the availability of the refund for
distribution to the residents. Excess fees have historically run
between $1,000 and $10,000.
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