Navarre Beach Against Illegal Taxation Committee

A Committee of the Navarre Beach Leaseholders and Residents Association

 

 

Frequently Asked Questions and Answers

 

 

Q.     When will the lawsuit be filed?

A.  The Santa Rosa County tax roll was certified on October 3, 2006.   We will be filing our lawsuit by Friday, December 1, 2006. 

 

 

Q.  What does this lawsuit include?

A.  This lawsuit will include a complaint of illegal taxation on both the land and the improvements.

 

 

Q.  Who can participate in this lawsuit?

A.  Every Navarre Beach leaseholder is eligible to participate in this lawsuit.  This includes residential and commercial leaseholders as well as condominium owners.   We do have an opinion from our attorneys regarding the participation and benefits of condominium owners.  Click here for more information for condominium owners.

 

 

Q. What do I need to do to be a named plaintiff in this lawsuit?

A.  The following information is required of each Leaseholder named in the lawsuit: 

• Leaseholder Information Sheet (click here for this form)

• First or Initial Lease – The lease between Santa Rosa County and the first or initial leaseholder of your property.  We only need a copy of this lease and it does not have to be certified.

• Assignment of Lease or Sublease and any Amendments - This lease assignment shows the transfer of the lease from the prior leaseholder to the current leaseholder (you).  You may find a copy of this lease in your closing documents.  There will not be an assignment of lease if you hold the original lease.

• Copy of the 2006 Ad Valorem Tax Bill

• Legal Fees Contribution – Residential:   $375.00 per leasehold parcel or property

 

Q.  How do I obtain copies of my lease information?

A.  For detailed instructions to obtain your lease information, please click here.

 

 

Q.  Where do I mail my copies of my information and my legal contributions?

A.  Please mail your information and legal contributions to: 

 

NBAITC

P.O. Box 5415

Navarre, FL 32566-0415

 

 

Q.  Do I pay the 2006 ad valorem taxes on my land and improvements?

A.   If you are a named plaintiff in the lawsuit -  As soon as our suit is filed, our attorneys will request a "stay" which prevents any collection action by the Santa Rosa County Tax Collector until a ruling is rendered.  During the stay, the Tax Collector cannot initiate collection actions, post tax liens or issue tax certificates.  During this period of stay, you will not be required to pay your 2006 taxes.  However, please note, that should there be an unfavorable ruling of our lawsuit, at that time your taxes will be required to be paid along with 12% interest.

 

You can be a named plaintiff in the complaint and pay your taxes.  If you choose to pay your taxes, our attorneys recommend that you send a letter along with your payment indicating that you are paying your taxes under protest.  You would be due a refund of these taxes if we prevail. However, opinion is that it may take considerable time as well as court orders from the various taxing authorities as well as release from the Florida Department of Revenue before you receive such refund.    The County has indicated that they will be escrowing any taxes paid by Navarre Beach Leaseholders but there is no guarantee that those funds will be available when time comes for refunds.

 

Our attorneys recommend that if your mortgage company is requiring payment of the taxes, ask if you can escrow the taxes with them.  You would have to pay the taxes, but would pay them to the mortgage company.  This assures that when we receive a favorable ruling, your taxes will be refunded to you with no hassle.  Your mortgage company needs assurance the taxes will be paid and they may be very willing to accept this option.  If you are a named plaintiff, you can also supply them with a copy of our lawsuit to provide proof of your dispute over the taxes.  If your mortgage company insists on paying the taxes from funds you have already escrowed, please ask them to send a letter that payment is being made under protest.

 

If you are selling your property and must pay the taxes, ask your title company to escrow the funds for payment at a later date or pay them tp the Tax Collector with a letter indicating you are paying under protest.  You would be due a refund of these taxes upon a favorable ruling.

 

If you are not a named plaintiff in this lawsuit,  you would not benefit from a stay order and should pay your 2006 assessed taxes when due.

 

 

Q.  My 2006 tax bill includes non-ad valorem assessments for items such as Navarre Beach Fire and Navarre Bch (Beach) Project.  Do I pay these non-ad valorem assessments?

A.  Yes.  These non-ad valorem assessments are separate items from the ad valorem taxes on your improvements and should be paid when due.  Our lawsuit only address "ad valorem taxes" and does not include or preclude you from payment of any non-ad valorem assessments.   In the past, the fire and beach project assessments were billed to you separately.  On your 2006 tax bill, the Tax Collector included these assessments in your tax bill under "non-ad valorem" assessments as noted on the tax bill copy here.   Please be sure to pay these assessments when due or you could be without your fire department!!

 

 

Q.  Who benefits from a favorable ruling of this case?

A.  If we ultimately win the suit, the plaintiffs will be free from taxation.  The court’s order will not apply to the non-plaintiffs, so they would be responsible for timely payment of their 2006 ad valorem taxes and could potentially continue to be subject to future taxes.  However, and with no guarantees, the practical aspect of the matter is that the taxing authorities would probably drop taxation for everyone for future years.

 

 

Q.  Should I continue to pay my lease/rent payments or rents?

A.  Yes and always timely and according to your lease terms.

 

 

Q.  If I am paying a lease/rent payments, why am I being assessed ad valorem taxes?  I feel I'm paying twice.

A.  Yes, right now you are being assessed ad valorem taxes as well as paying a lease/rent payment. 

 

 

Q.  What about fee simple title?

A.   Santa Rosa County Property Appraiser, Greg Brown, has expressed desire to offer Navarre Beach Leaseholders a “fee simple” title.  While Mr. Brown can assist and support any such action, fee simple title can only be given through a State of Florida legislative action.   However, in most opinions, it is believed that while a legislative action may be forthcoming, the settlement of those leases to fee simple title could be a long process.  With the significant value of the Navarre Beach leased property, it is anticipated that mainland citizens and property owners within the County may take serious issue with their County Commission granting Leaseholders ownership of the leased land without additional consideration or compensation to the County. 

 

 

Q.  Why do we have to submit Intangible Tax Returns?

A.   One of the major points of our case is that our leasehold property is defined as "intangible personal property" as defined in Florida Statutes. Intangible personal property is taxed at intangible personal property rates and NOT taxed at ad valorem rates. To show our compliance, we must supply our completed our annual Intangible tax returns.   Nothing is due if the tax is less than $60, which is the case for most leaseholders.  Click here for 2002- 2006 DR 601G tax forms.

 

 

Q.  How I will receive updates or information related to the suit?

A.  Due to the large number of Leaseholders and associated reproduction and postage expenses, we are providing this website to post information relative to the suit.  Our attorneys will mail directly to you any information required by them.  All court recorded documents and all other communications not deemed attorney privileged will be available online.  Any attorney privileged information or memorandum will be available to you by request and will be mailed to you directly.  Just email us if you missed a mailing or need additional information.

 

 

Q.  What if I have other questions? 

A.   In accordance with terms of our representation agreement, we have created a Liaison Committee of three to act as a liaison between the Leaseholders and our attorneys.  If you have any questions for the Liaison Committee or for the attorney, please email them to us and we will get your question answered.  This enables us to reduce the number of hours (and thus our bill) our attorneys may spend with individual Leaseholders that may have the same or similar questions.  Members of the Legal Liaison Committee are:  Mike Van Cavage, (850) 934-9482 and Paul Horil (850) 939-7444.

 

Q.  I have moved, how do I change my address?

A.  If you are a party to the lawsuit and need your address changed, please email us.  Please be sure to include a phone number where you can be reached.  When sending any e-mail to the tax committee, please identify yourself and the address of the property you lease on Navarre Beach. 

 

Please be sure to contact the Property Appraisers office to update your address also.  There is an address update form on their website at www.srcpa.org or you may call or write the property appraiser as follows:

 

Santa Rosa County Property Appraiser

Street Address: 6495 Caroline Street, Milton, FL 32570

Mailing address:  P.O. Box 606, Milton, FL 32570-0606

Telephone:  850-983-1880, Fax: 850-623-1284

 

 

Q.  I am receiving duplicate mailings.

A.   If you lease more than one property on Navarre Beach and received more than one mailing,  please send us an email with the different spellings of your name and the property addresses so we can reduce the pieces of mail in the future.

 

 

Q.  What do I need to do if I do not want to participate in this action? 

A.   If you do not wish to participate in this action, you do not need to do anything at this time.