Metropolitan Dade County v. Adler Built Industries, Inc.

• Citation: 222 So.2d 264
• Decision Date: 29 April 1969
• Docket Number: No. 68-186,68-186
• Parties: METROPOLITAN DADE COUNTY, a political subdivision of the State of Florida, et al., Appellants, v. ADLER BUILT INDUSTRIES, INC., a Florida corporation, Appellee.
• Court: Florida District Court of Appeals

Page 264

222 So.2d 264

METROPOLITAN DADE COUNTY, a political subdivision of the State of Florida, et al., Appellants, v. ADLER BUILT INDUSTRIES, INC., a Florida corporation, Appellee.

No. 68-186.

District Court of Appeal of Florida, Third District.

April 29, 1969.

Rehearing Denied June 11, 1969. Opinion Vacated 232 So.2d 437.

Thomas C. Britton, County Atty., and John G. Fletcher, Asst. County Atty., for appellants.

Harris & Sirkin and Herbert Buchwald, Miami, for appellee.

Before PEARSON, BARKDULL and HENDRY, JJ.

PER CURIAM.

By this appeal, the County questions the correctness of a final decree entered by the trial court, reducing the assessments for the calendar year 1965 on certain properties owned by the appellee.

The primary evidence in the record as to the 'just value' of the properties involved was the recent cost of the properties at a bona fide sale; ¹ the assessed value of comparable property in the surrounding area; and the fact that there had been no change in the surrounding area or the property involved between the time of the last purchase and the assessment date. The period between the last purchase and the assessment date was of short duration. (Between the date of the first purchase and the latter, the properties decreased in sales price.)

We find that this showing on behalf of the property owner was sufficient to shift the burden to the County taxing authorities to justify their assessments. ² The County did not go forward with sufficient evidence to support the assessments. The trial court reduced the assessments to the level reflected in the recent sales and fixed interest at 6% On the difference in the tax between that as deposited in the registry of the court and that as ultimately found due.

The County appeals, contending (1) that the evidence was insufficient by the plaintiff to justify a reduction in the assessments, and (2) that the interest, pursuant to § 193.51, Fla.Stat., F.S.A., on the undeposited balance of the tax should be 18% Rather than 6%.

Generally, assessments are presumed to be valid. City of Tampa v. Palmer, 89 Fla. 514, 105 So. 115; Harbond, Inc. v. Anderson, Fla.App.1961, 134 So.2d 816; St. Joe Paper Company v. Brown, Fla.App.1968, 210 So.2d 725. The burden is on the landowner to demonstrate that the assessments are incorrect. City of Tampa v. Palmer, supra; Harbond, Inc. v. Anderson, supra; St. Joe Paper Company v. Brown, supra. However, once the landowner puts on evidence of the type indicated above, it is incumbent upon the taxing authorities to come forward with evidence to justify their assessments. The County failed to do this in the instant case and, therefore, we affirm the action of the chancellor in reducing the assessments. Lanier v. Overstreet, Fla.1965, 175 So.2d 521; Walter v. Schuler, Fla.1965, 176 So.2d 81; Homer v. Dadeland Shopping Center, Inc., Fla.App.1969, 217 So.2d 844 (opinion filed January 14, 1969).

The question of the amount of interest which should have been paid on the additional tax (which was not deposited in the registry of the court) has recently been considered by this court. See Dade County v. Universal American Realty Corp., Fla.App.1969, not yet reported, opinion filed April 15, 1969. In that case we held that § 193.51, Fla.Stat., F.S.A., was binding upon the trial court in a similar situation. We therefore find that the trial court erred in assessing interest at 6% Upon that portion of the tax which was not deposited.

The judgment is affirmed in part and reversed in part and remanded for an amended judgment fixing the amount of interest in accordance with § 193.51, Fla.Stat., F.S.A.

Affirmed in part, reversed in part and remanded.

BARKDULL, Judge (concurring in part; dissenting in part).

I concur with so much of the majority opinion as affirmed the reduction in the tax assessment. However, I dissent to that portion requiring that interest be fixed at 18% On the balance of the tax found to be due (not deposited in the registry of the court). The majority opinion relies on this court's opinion in Dade County v. Universal American Realty Corp. Fla.App.1969 (opinion filed April 15, 1969), in reference to the question of the amount of interest to be charged, which opinion, in turn, relies heavily on an opinion of the Second District Court of Appeal in Haines v. Leonard L. Farber Company, Inc., Fla.App.1967, 199 So.2d 311. However, it appears that this confidence is misplaced in that a review of the latter opinion does not indicate that the court took into consideration a comparison of § 193.51, Fla.Stat., F.S.A. (relating to penalty interest on unpaid taxes) and § 194.02, Fla.Stat., F.S.A. (relating to delinquent tax sales and the amount of interest), plus the Legislative history that preceded these present sections.

When taxes become delinquent on April 1st of the following year in which the taxes were assessed, said taxes 'shall bear interest from such date at the rate of eighteen per cent per annum for the first year and eight per cent per annum for the time after the first year.' On June 1st following the delinquent date, the tax collector is required to advertise and sell the tax certificate for the face amount of the tax, plus costs and interest from the 1st day of April to the date of sale on June 1st at the rate of 18% Per annum. Lands upon which taxes have become delinquent may be redeemed prior to the date of tax sale and the issuance of tax certificate upon the payment of costs and delinquent taxes and interest at the rate of 18% Per annum, but not less than 3% Of the amount of such taxes. § 193.51, Fla.Stat., F.S.A.

In order to determine the penalty interest chargeable against delinquent ad valorem taxes, the present provisions in the Florida Statutes must be traced from the initial enactment which was Ch. 4322, Laws of Florida, 1895. This act specified, in § 50 thereof, that if taxes upon any real estate shall not be paid before the 1st of April that same shall be sold by the tax collector. At such sale, the 'land shall be struck off to the person who will pay the tax, cost and charges For the least number of acres of land, and the portion thereof sold shall be taken from the southeast corner of such parcel and described in a square form as near as may be.' Attention is directed to the fact that only a part of the land was sold for taxes and the successful bidder at the tax sale was the person who was willing to pay the tax, cost and charges for the least amount of land against which the taxes were levied. After said sale, the delinquent taxpayer could redeem the parcel of land 'by paying to the Clerk of the circuit court the amount for which such parcel was sold * * * with interest thereon at the rate of 25% Per annum' at any time within two years next succeeding the sale.

Ch. 5596, Laws of Florida, 1907, § 57, enacted a reduction in the penalty interest, and this is shown by the form of tax certificate to be issued which provided for a tax deed 'unless the same shall be redeemed within two years by payment of said amount with interest at the rate of twenty-five per cent per annum for the first year and Eight per cent per annum thereafter.' This provision and earlier related acts reduced the second year's interest from 25% Per annum to 8% Per annum.

By Ch. 14572, Laws of Florida, 1929, § 974, a new method of tax sale was provided. This required the tax collector to sell land at tax sale 'to the person who will pay the tax, cost and charges and Will demand the lowest rate of interest for the first year not in excess of the maximum rate allowed by law.' The effect of this bidding statute was to work a reduction in the rate of interest chargeable against the taxpayer by making the person who bid the lowest rate the successful purchaser.

§ 985 thereof specified 'interest on land sold in the year 1929 and thereafter shall be at the rate per annum bid by the purchaser for the first year Not in excess of eighteen per cent (18%) per annum and ten (10%) per cent per annum for the second year and eight per cent (8%) per annum thereafter, but not less than five per cent (5%) of the face of the certificate.' The effect of this act was to reduce the first year's penalty interest to 18% Per annum, the second year to 10% Per annum, and the third year to 8% Per annum.

A change in the interest rate was effected by Ch. 20722, Laws of Florida, 1941, which set forth 'interest on lands, hereafter sold shall be at the rate per annum bid by the purchaser for the first year Not in excess of 18% Per annum and 8% Per annum for the time after the first year, but not less than 5% Of the face of the certificate.'

A change was again effected by Ch. 28254, Laws of Florida, 1953, in which it is stated: 'Interest on lands hereafter sold shall be at the rate per annum bid by the purchaser for the period of time from the date of certificate Not in excess of twelve per cent per annum and eight per cent per annum for the time after the first year, but not less than five per cent of the face of the certificate.' This is the provision presently found in § 194.02, Fla.Stat., F.S.A.

Of great importance in Dade County in the provision of § 193.62 Fla.Stat., F.S.A., as follows: 'Incorporated cities and towns, notwithstanding any provisions to the contrary in their charter or any special act, shall not charge any interest rate In excess of twelve per cent per annum on tax certificates.' § 4.04 of The Home Rule Charter for Metropolitan Dade County requires county and municipal taxes shall be collected by the County on one bill prepared and sent out by the County....