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NBAITC Updates
HEARING RESULTS
The two sides began their oral arguments about 9 a.m. on May 7th in the Santa Rosa County Courthouse before Judge Bergosh. About 25 leaseholders attended. At 12:30 Judge Bergosh broke for lunch and said he would review the materials and would reconvene after lunch. Each side produced a memo of more than 100 pages and a 4 inch binder of case law to back up their oral arguments. Judge Bergosh must be a speed reader because he said he reviewed the materials over lunch and ruled against us on every point. He declared the leaseholders as owners of the land via equitable ownership. He said he ruled based upon what he thinks is fair, (everyone pays their fair share of government services). He also said that although the law states that a lease of more than 100 years can be taxed and leases of 99 years or less pay an intangible tax, he did not feel one year should make any difference. He effectively said, I know the law says one thing but I’m ruling a different way. We have always thought that we would lose in the local courts and would have to appeal. It was indeed disappointing to watch our attorney, Danny Kepner, make solid points and seemingly win most of the oral arguments only to have the judge ignore all of the case law that Mr. Kepner brought forth. The liaison committee feels there are ample reasons to appeal and will recommend an appeal to the NBLRA.
Status – December 31, 2008
Our suit against Greg Brown, the Santa Rosa County appraiser, has yet to be heard in the court system. Early in the proceedings, Mr. Brown made a motion for a Summary Judgment to exclude condominium owners from the suit. That motion was granted by Judge Bergosh in the lower court. We appealed that decision and oral arguments were heard before the Court of Appeals in Tallahassee on October 14. Our attorney, Danny Kempner, notified us that in a 3 – 0 decision, the Court of Appeals overturned Judge Bergosh’s decision. Condo owners can now be members of the law suit. Both sides have now filed additional motions with the Court of Appeals. These motions will be heard in 2009. The defense is expected to begin depositions in early 2009.
November 12, 2008
Bills are sent out regarding leases fees. It is imperative to pay the lease fee on your property. The lease fee is essentially rent. One of the main points of our lawsuit is that we should not be charge rent and have to pay taxes on our leasehold properties. **Please pay your lease fee when it is due.
Navarre Beach Leasehold Credit
Recently, letters were sent out to some leaseholders from Navarre Beach Accounts Receivable, Santa Rosa County. The letter stated that certain leaseholders could obtain a credit against lease fee so that the total of leaseholder's ad valorem tax plus lease fee does not exceed total of taxes on improvements and land. This question came up last year too. When we presented this question to our attorney Mr. Kepner, he advised us to NOT accept the credit offer. The " Lease Fee ", which is actually called "ANNUAL RENT" per our written Lease Agreement with the County, is tied directly to our suit. Most importantly, Florida Statute 199.196 (2) (b) states if you pay an Annual Rent to the Government and the lease is for less than 100 years the tax owed is the " GOVERNMENTAL LEASEHOLD INTANGIBLE PERSONAL PROPERTY RETURN" DR-601G. Mr. Kepner feels this is an attempt by the County to disqualify Leaseholders / Plaintiffs from the suit. The tax assessor, Gregory Brown’s attorney, could and most likely would use this point against any of us during oral argument before the court. Our only request of the Court in this tax suit is to recognize the current tax law involving Governmental Leasehold Property and to only have the current tax that applies to that type of property i.e. F.S. 199.196 (2) (b) , which is the tax on "Governmental Leasehold Intangible Personal Property". The County is using the idea of FAIRNESS in an attempt to sell this Credit offer idea saying it's not FAIR that Leaseholders pay a Lease Fee and Property Tax too! However, we feel it is not FAIR that County Officials can impose a tax on us, which does not follow the current tax laws in the State of Florida. What we should remember is that we are not attempting to make new tax laws; our only request is to be taxed in accordance with the current tax laws. Frequently Asked Questions
What can leaseholders do?
If your permanent address changes, please forward the new address to the committee and our attorney.
Yes, this is the basis of our lawsuit, we pay a lease fee because we rent the property, we do not own it.
Compute any tax owed and pay the tax. If none is owed you are not required to send in the paperwork. How can I tell if I am included in the law suit? All named plaintiffs are listed on the website for each year and can by found under the topic of legal documents filed.
A sample memorandum letter will be added to our website that can be used for the mortgage company. |