A-V Tax

Question 1

State is constitutionally prohibited from assessing what type of tax?

Answer 1

Ad valorem on real or tangible personal property.

Question 2

AV is the only type of tax LG can assess?

Answer 2

NO.
(1) AV on real prop + tangible personal prop.
(2) Any authorized by general law. Ex. public serv tax, cigarette tax [both are muni pwrs enjoyed by Charters.]

Everything else preempted. Ex. excise.

~~~gas tax, tdt?~~~

Question 3

Give example of taxing power of muni limited.

Answer 3

Tampa v. Birdsong., 261 So.2d 1 (Fla. 1972)
———–
City imposed license tax. County held invalid. Any tax imposed by a City must be authorized by general law, except for A-V taxes.

Question 4

State 3 ways County can impose millage beyond its 10 mills?

Answer 4

1) MSTU.
2) Taxes levied for payment of bonds w/ vote.
3) For gen govtl purposes FOR 2 YEAR w/ VOTE.

Question 5

Prerequisites for special districts to impose tax.

Answer 5

1) Authorized by law &
2) Approved by voters.

Question 6

What is paid with A-V taxes?

Answer 6

1) MSTU.
[msbu = Non AV = assessmt, collected w/ UCM]
2) GOB & other indebtedness over 1 yr for CAPITAL PROJECTS & authorized by electorate.

Question 7

If Counties can tax for municipal services w/i a City & for MSTUs w/i a City, what 2 things keep that fair for the City HOs?

Answer 7

1) Dual tax limited to req REAL & SUBST BENE.

2) Never exceed 20 mills.

Question 8

What do non-AV assessments pay for?

Answer 8

stormwater utilities, fire and rescue, and solid waste
———–
BUT NOT LEO!!!
Excepted under Water Oak Mgmt v. Lake County b/c LEO, courts & indigent health care, unlike fire protection services, provide no direct, special benefit to real property. . . . Thus, such services cannot be the subject of a special assessment because there is no logical relationship between the services provided and the benefit to real property.

Question 9

What is it illegal to compel LG to do?

Answer 9

Pledge AV in a way that cd raise taxes.
———–
Volusia v. State, pledged all non-AV taxes w/ a promise to maintain all programs generating various revenues.

Question 10

When do you need electorate approval?

Answer 10

Pledging A-V taxes.

Question 11

MSTUs are not an entity known as __________.
They are unique in that they are _____________.
They do not require _____________.

Answer 11

Special district.
A-V taxes imposed less than countywide.
Referendum.

Question 12

What are sources of revenue for LG?

Answer 12

Any charge imposed that is not a tax.
1. Fees
(a) user, (b) regulatory [bldg permit, impact fees.
2. Special Assessments
(a) Capital, (b) Service

Question 13

What are 2 ways LGs impose fees?

Answer 13

1) Regulatory - police pwrs limited to cost (bldg permits, inspection, impact fees)
2) Proprietary - utility, franchise. allows profit

Question 14

What are paid w/ non-AV taxes?

Answer 14

1) Operating expenses.
2) Revenue bonds.

Question 15

Read
Volusia v. State, 417 So.2d 968 (Fla 1982) for?

Answer 15

he indirectly pledged AV
———–
Bonds payable from non-AV may be an indirect pledge of AV & subject to referendum.

Question 16

How are typical revenue bonds paid?

Answer 16

1) Covenant to appropriate = not secured by a specific revenue = subj to ability to pay operating costs.
2) non-AV revenues, excise, gas, state sharing, utility & sewer revs.

Question 17

Which revenue bonds cd be paid w/ A-V?
Which ones can not?

Answer 17

(1) Can pay w/ AV if runs no longer than 5 yrs.
(2) Can never exceed 30 yrs.
(3) Must allege Trustee in validation.
—
Remember&raquo_space; lease runs fiscal to fiscal. If no approp, lease ends. It’s eternally on a less than 1 yr cycle. So can pay w/ AV or non-AV.
———–
Conduits.
Con = Non. Con do it. No AV NEVER.

Question 18

How are Lease equip. bonds/indebtedness paid?

Answer 18

~she doesn’t say. looks non-AV b/c:

No revenue stream is pledged b/c no sales of certificates (like COPS).
Subj to appropriation.

Question 19

Are Conduit Bonds paid w/ AV or non-AV?

Answer 19

CON = NON
———–
c ‘on’ duit = english accent can’t do it = NO AV
———–
Strictly Non-AV revenue from project.
May NOT use AV.

Question 20

Are CRAs/TIFs paid w/ AV or non-AV?

Answer 20

Non-AV ‘tax increment’ diff b/w assessed value b/4 & after project.
See State v. Miami Redevelopment Agency, 392 So.2d 875 (Fla 1980).
Holloway v. Lakeland, 417 So. 2d 963 (Fla. 1982)
Strand v. Escambia, 992 So. 2d 150 (Fla 2008).

Question 21

Are Spec Assessment Bonds paid w/ AV or non-AV?

Answer 21

Non-AV revenue from the spec assessments on property specially benefitted. = Revenue

Question 22

Which revenue bond can be pd w/ AV?

Answer 22

COPS - up to 5 yrs.
* No AV if exceeds 5 yrs.
* Can’t exceed 30 yrs.

Question 23

Which revenue bond specifically excludes use of AV?

Answer 23

Con du it - no AV or 2004
———–
cops sentence u 5-30 yrs + u become trustee.

Question 24

What type of charge is MSTU or MSBU?

Answer 24

User fee.
User fees are directly imposed by Charters & Munis. (FS 166.201)
User fees are indirectly imposed by Non-C Counties via MSTU & MSBU. (FS Ch. 125)

Question 25

Name 1 type of assessment & 3 types of fees.

Answer 25

1) Spec Ass (spec bene, fair approp)
2) User fee (voluntarily purchased serv bene payor to exclusion of non-payors.)
3) Impact fees. (nexus, water, sewer, roads, parks_
4) PILOT - under proprietary pwrs (not sovereign) & not a tax.

Question 26

When do you need a referendum for a bond?

Answer 26

If it exceeds 12 mos. & is payable from AV = GOB
AND
Can only use for CAPITAL PROJECTS.

Question 27

What if a bond is less then 12 months & payable from AV - do you need a vote?

Answer 27

NO.
Vote is triggered by the combo of 12 mos. + AV.

Question 28

What if bond exceeds 12 months but is not paid by AV?

Answer 28

That’s a revenue bond. No vote needed for a revenue bond.

Question 29

Is the capital projects requirement linked to exceeding 12 mos or using AV?

Answer 29

Both together at same time. Why? b/c that causes a Referendum. Voters can only vote on capital projects.
———–
Anything requiring a referendum must be for capital projects.
Anything over 12 mos + AV = referendum = cap proj.

Question 30

Why is no vote needed for TIF/CRA bonds?

Answer 30

No A-V pledged.
———–
Bonds are payable from a trust fund whose revenue is sales of redeveloped property (akin to revenues) + tax increment (not tied to govt revenue or AV).

Question 31

Which revenue bonds waffle w/ A-V?

Answer 31

Con = non AV + non 2004
Con du it = can’t use AV or file 2004
———–
COPS give u 5-30 yrs + u become Trustee
CAN use AV if not longer than 5 yrs [w/ total capped @ 30 yrs]. Needs a Trustee