Sarasota County v. Sarasota Church of Christ
20 Fla. L. Weekly Supp. 600, 1995 Fla. LEXIS 2038, 667 So. 2d 180 (1995)
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Rule of Law:
A government charge for stormwater management services is a valid special assessment, not a tax, if it applies only to properties deriving a special benefit from the service (such as developed properties generating polluted runoff) and is fairly apportioned based on the properties' contribution to the problem. A legislative determination of a special benefit will be upheld unless it is arbitrary.
Facts:
- In 1989, Sarasota County adopted an ordinance to create and fund a stormwater environmental utility, in accordance with the federal Clean Water Act and Florida's Air and Water Pollution Control Act.
- The ordinance imposed special assessments exclusively on developed real property, which contains impervious surfaces that contribute to polluted stormwater runoff.
- Undeveloped property was not assessed, as the County determined it provides a benefit by helping to absorb stormwater runoff.
- The assessment's cost was apportioned based on the properties' classification as residential or non-residential, which was intended to reflect their relative contribution to stormwater discharge.
- A class of religious organizations (the Churches), whose developed properties were subject to the assessment, are statutorily exempt from ad valorem taxes.
- The Churches challenged the assessment, arguing it was a tax from which they should be exempt.
Procedural Posture:
- The Sarasota Church of Christ, Inc., on behalf of a class of religious organizations, sued Sarasota County in a Florida trial court to have the stormwater assessment declared an invalid tax.
- Following a non-jury trial, the trial court ruled in favor of the Churches, invalidating the assessment and ordering a refund.
- Sarasota County, as the appellant, appealed to the Second District Court of Appeal of Florida.
- The Second District Court of Appeal affirmed the trial court's ruling.
- The Supreme Court of Florida granted review due to a conflict with decisions from other appellate districts.
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Issue:
Does a county-wide fee for stormwater management services, imposed only on developed properties that generate runoff while exempting undeveloped properties, constitute a valid special assessment rather than an ad valorem tax?
Opinions:
Majority - Overton, J.
Yes, the county-wide fee constitutes a valid special assessment. A charge is a valid special assessment if the assessed property derives a special benefit from the service and the assessment is fairly apportioned. Here, developed properties receive a special benefit because the stormwater services control and treat the polluted runoff created by those specific properties. Exempting undeveloped land is reasonable because it does not contribute to the problem and, in fact, helps mitigate it. Apportioning the cost based on the characteristics of the developed properties that cause the runoff is a fair and reasonable method that is not arbitrary.
Dissenting - Grimes, C.J.
No, the fee is not a valid special assessment. A special assessment requires that the assessed properties derive a special benefit greater than that realized by unassessed properties. I cannot see how the developed properties in this case derive a special benefit from the stormwater services that is greater than the benefit realized by the undeveloped properties.
Dissenting - Wells, J.
No, the charge is a tax, not a special assessment. The ordinance itself declares that the stormwater system provides benefits to all real property within the County, which is the hallmark of a general benefit funded by a tax. The majority opinion makes the distinction between a special assessment and a tax illusory, thereby threatening constitutional exemptions for religious organizations and homesteads. The court should not abdicate its role in making the fundamental legal determination of whether a levy is a special assessment or a tax, as the county's ordinance describes a county-wide scheme for general improvements, which is a tax.
Analysis:
This decision significantly bolsters the authority of local governments to fund environmental infrastructure projects, like stormwater management, through special assessments. It expands the definition of a 'special benefit' beyond a direct increase in property value to include the benefit of managing pollution created by the assessed property. By establishing a deferential 'arbitrary' standard of review for legislative findings of benefit and apportionment, the case makes it easier for municipalities to place the financial burden of environmental remediation directly on the properties that contribute to the environmental problem.
