County announces reprieve for city on controversial taxes

Sarasota County hopes giving the city of Sarasota an extra year to pay a controversial tax bill will help avoid litigation and controversy.

Still, county staff and the county attorney are confident their assessment of certain city-owned properties for county fire services is fair. In an Oct. 26  letter to City Manager Tom Barwin, the county said it would grant amnesty for the current year’s assessments on 13 parcels leased to various nonprofit organizations.

Before next year, Assistant County Administrator Steve Botelho said, the county will also complete an update of its Fire Assessment program as well as a study of the assessment process. During that time they hope to find, among other things, what happened that caused previously unassessed properties to be moved from the property appraiser’s rolls to theirs. That study has been planned since last February, he said.

The county assesses taxes on approximately 300,000 properties, approximately 176,000 of which are subject to the fire assessment. In November, 2014, the city noticed it had been billed by the county for parcels that hadn’t been included in the past. After discussions, county staff eliminated some properties but kept others. In September, the city objected to the assessments at a county budget hearing.

Deputy City Attorney Michael Connolly said during a recent interview with the Sarasota Observer  that he was afraid county fire services assessments might lead to ad valorem assessments, which would carry a much higher cost. The city has since continued to express that, and has retained counsel to help them navigate the issue.

For the 13 parcels the county is confident it will assess for starting next year, Emergency Services Director Rich Collins said the bill would be $39,667, for fire services from the county. Ad valorem taxes on those properties could be as much as $900,000.

The total fire assessment budget is approximately $30 million.

Collins continued to emphasize the distinction between an assessment of ad valorem taxes and an assessment for a benefit such as fire services to a property.

“If the Girls’ Club catches on fire, it’s our responsibility to put it out," Collins said. "There’s a tangible benefit to the property for us to respond and put out the fire and protect that property. That’s why it’s included.”

County Attorney Stephen DeMarsh wrote in a letter to the city that there is no relationship between the ad valorem exempt status, and the county’s right to assess a property for a special benefit such as fire services.

“We’re not saying those 13 should never have been there,” Bothelo said. “It’s more, before we go down this road let’s get this study wrapped up. We feel like hitting pause for one more year gives them time to prepare for any budget implications and (gives us time) to make sure, are these the final 13?”