State Ex Rel. Woman's Ben. Ass'n v. Port of Palm Beach Dist.

• Decision Date: 25 November 1935
• Citation: 121 Fla. 746,164 So. 851
• Court: Florida Supreme Court
• Parties: STATE ex rel. WOMAN'S BEN. ASS'N et al. v. PORT OF PALM BEACH DIST. et al.

164 So. 851

121 Fla. 746

STATE ex rel. WOMAN'S BEN. ASS'N et al. v. PORT OF PALM BEACH DIST. et al.

Florida Supreme Court

November 25, 1935

Original mandamus proceeding by the State of Florida, on the relation of the Woman's Benefit Association and another, against the Port of Palm Beach District and others, in which an alternative writ of mandamus issued. On demurrer to the alternative writ.

Demurrer overruled.

BUFORD J., dissenting.

COUNSEL Giles J. Patterson, of Jacksonville, for relators.

W Terry Gibson, A. L. Rankin, and C. D. Blackwell, all of West Palm Beach, for respondents.

OPINION

CAMPBELL, Circuit Judge.

Upon the sworn petition of the relators, this court issued an alternative writ of mandamus, directed to the respondents commanding them to perform certain alleged duties, with reference to the levy and assessment of taxes on all real and personal taxable property, including homesteads of less than $5,000 valuation, in Port of Palm Beach district, (formerly Lake Worth Inlet district), for debt service purposes; that is, to provide for the payment of the interest, and for the retirement of the principal at maturity, of certain bonds of the district, described in the alternative writ of mandamus. The alternative writ directs compliance with its commands, or that cause be shown why the respondents should not comply therewith.

The alternative writ of mandamus, after stating the names of the relators, and the names and official character of the respective respondents, alleges in substance: That the Lake Worth Inlet district was created by the provisions of chapter 7081, Laws of Florida, Special Acts 1915, and that various acts of the Legislature amendatory to, or affecting the provisions of said creative act, are as follows: chapter 7522, Special Acts 1917, chapter 8800, Special Acts 1921 chapter 9993, Special Acts 1923, chapter 10756, Special Acts 1925, and chapter 17089, Special Acts 1935. That by the last-mentioned act, the name of the said district was changed from Lake Worth Inlet district to Port of Palm Beach district; that Harry R. Corwin, L. R. Bishop and William A. Weihe, are the duly qualified and acting board of commissioners of Port of Palm Beach district, and that William A. Weihe is the qualified and acting secretary of said board; that A. A. Poston, C.J. Meerdink, C. Y. Byrd, Doyle W. Croker, and John Prince are the duly qualified and acting county commissioners of Palm Beach county, and the said James M. Owens, Jr., the duly qualified tax assessor of said county.

It is further alleged, in substance, that Lake Worth Inlet district (now Port of Palm Beach district) being duly authorized by the Constitution and the laws of Florida, particularly chapter 7081, Laws of Florida, Special Acts 1915, and the subsequent acts of the Legislature, herein above referred to as being amendatory thereto, or otherwise affecting the same, made, executed, delivered, and issued certain coupon bonds of said district, one of said issues being dated July 1, 1916, and numbered 1 to 300, both inclusive, another issue bearing date 1st day of July, 1920, and numbered 301 to 450, both inclusive, another issue dated July 1, 1922, and numbered 451 to 725, both inclusive, another issue bearing date July 1, 1924, and numbered 726 to 1125, both inclusive, and another issue bearing date January 1, 1926, for 3,250 bonds; each of the bonds in the respective issues being for the principal sum of $1,000, and bearing interest, some at 5 1/2 per cent. and others at 6 per cent. per annum payable semiannually. To the original petition there is attached, as is alleged, one copy of a bond with interest coupons, of each of the respective issues.

Each of the relators is alleged to be the owner and holder of certain of the bonds with coupons attached, so issued by said Lake Worth Inlet district, giving the number of each of the bonds so owned, and of which issue it is a part. It is further alleged that the aggregate amount of principal and interest of all issues now past-due and payable, and in default, to the relator Palm Beach Company is the sum of $49,227.50, and the aggregate amount of principal and interest to mature on the bonds of all said issues in the ensuing fiscal year is the sum of $76,055. As to the bonds held by the relator Woman's Benefit Association, a corporation, it is alleged that interest in the sum of $2,700 will become due and payable in the ensuing fiscal year.

The allegations of paragraph 14 of the alternative writ of mandamus are as follows:

'That the Lake Worth Inlet District has an outstanding bonded indebtedness of approximately $3,650,000.00, of which said amount of outstanding bonds, $93,000.00 are past due. In addition to said past due bonds there is matured interest outstanding and unpaid in the approximate amount of $196,000.00, and said Lake Worth Inlet District has been in default in the payment of principal on its outstanding bonds since January 1, 1933, and has been in default in the payment of interest on its bonded indebtedness since January 1, 1933.

'That the assessed valuation of all taxable property located in the Power of Palm Beach District, according to the assessment roll for the year 1935, is approximately $18,350,000.00, and that of such property, property of the assessed valuation of approximately $2,965,000.00 has been sold to the State of Florida for taxes for the year 1933 or prior years; that the remaining properties, having an aggregate assessed value of $12,385,000.00, include homesteads of the value of $5,000.00 or less each, of an aggregate assessed value of $1,215,000.00.'

Paragraph 16 of the alternative writ of mandamus alleges as follows:

'That article 10, section 1 of the Constitution of the State of Florida provides that homestead property shall not be 'exempt from sale for taxes or assessments,' and said article was in force when the bonds described in this writ were issued. That on the 6th day of November, A.D. 1934, the electorate of the State of Florida voted to amend the Constitution of the State of Florida by adding section 7 to article 10, which provides

"There shall be exempt from all taxation other than special assessments for benefits to every head of a family who is a citizen of and resides in the State of Florida, the homestead as defined in Article X of the Constitution of the State of Florida, up to the valuation of $5,000.00; provided, however, that the title to said homestead may be vested in such head of a family or in his lawful wife, residing upon such homestead or in both.'

'That the major portion of the homestead property, including homesteads valued at less than $5,000.00, located in the Port of Palm Beach District, to-wit, all except homesteads of the aggregate value of $225,000.00, has currently paid taxes, and such property has not been delinquent in the payment of ad valorem taxes; but, notwithstanding the collection of the said taxes against said homestead property, the said district has defaulted in the payment of its bonded debt, as herein described, and the omission of said homesteads of less than $5,000.00 valuation from the assessment roll, and the exemption of the same from the payment of ad valorem taxes for the payment of interest and principal on relator's bonds, will reduce the amount of tax collections and thus diminish the security and reduce the value of bonds and coupons held by your relators, and impair the obligation of relators' contracts, contrary to section 17 of the Declaration of Rights of the State of Florida, and article 1, section 10 of the Constitution of the United States.'

It is then, in substance, further alleged that it is the duty of the respondents, as and constituting the board of commissioners of Port of Palm Beach district, by resolution to levy upon all the real and personal taxable property in said district a tax sufficient to pay the interest and to create a sinking fund for the payment at maturity of the bonds held by the relators; that it is the duty of such board to certify such resolution through its chairman and secretary, affixing the seal of the board, and delivering same to the board of county commissioners of Palm Beach county, whose duty it is to then assess the taxes levied upon all taxable real and personal property in said district at the rate of taxation adopted by the board. That it is the duty also of the respondent tax assessor of Palm Beach county to prepare an assessment roll in accordance with the laws of the state of Florida, which shall include in the description of properties to be assessed all property which was taxable by said Lake Worth Inlet district, and the commissioners thereof, at the time the bonds of relators were issued, and including therein all homesteads regardless of the valuation of the same, and to carry out, extend, and assess the taxes so fixed and levied, against and upon all such properties.

It is further alleged that the Comptroller of the State of Florida has instructed all county tax assessors to omit homestead property of a valuation of less than $5,000 from the assessment rolls of their counties, and relators are informed and believe, and upon information and belief allege, that the tax assessor of Palm Beach county is omitting homestead property less than $5,000 in value located in Port of Palm Beach district, from the assessment rolls for the fiscal year 1935-1936, on which taxes will be extended, whereby the obligation of the contract of the district bonds held by relators will be impaired.

The commands of the alternative writ of mandamus require the respondent Port of Palm Beach district and the board of commissioners of such district to pass and certify the necessary resolution for the levy of the taxes required in the Port of...