Tax Man says Pay Up in Navarre Beach

It's time to pay up for Navarre Beach residents.

After more than four years of legal battles, The Florida Supreme Court has declined to hear an appeal of the 1st District Court of Appeals June, 2005 ruling that Santa Rosa County can levy property taxes against beach residents and merchants.

That means Navarre beach leaseholders should be expecting property tax bills in the mail soon, and they may get a shock when the tax bills arrive. Property taxes may soon be payable for four years in a row.

Navarre Beach is located about 20 miles west of Destin in Santa Rosa County.

"I really think it's an injustice, but it is what it is," said Charles Pack, chairman of Navarre Beach Residents Against Illegal Taxation. "We thought they might (hear the case) because it definitely affects a whole lot of people."

Pack was among hundreds of leaseholders fighting county Property Appraiser Greg Brown's 2001 decision to assess property taxes on homes and businesses.

It may be hard for some to believe, but Pack said he really wasn't sure which way the case would go.

"We were prepared to go either way," he said. "I just think it's a win for the citizens of the county."

The County Appraiser said Navarre Beach leaseholders should have to pay property taxes just like all other Florida property owners.

"They sell property on the open market just like the mainland does," he said. "I believe it's a fairness issue."

After the ruling, about 1,700 leaseholders on the beach now owe some $13 million in property taxes for the past three years.

Property taxes from Navarre Beach will generate an estimated $3 million annually.

Historically, Navarre Beach residents have not paid property taxes because they lease land from the county instead of owning it, and other county residents have said they have been getting away with it for years.

Leaseholders argued that they should not be taxed because they do not hold legal title to the land, but only lease the land their buildings are located on.

"With property values just going out of sight and then with taxes, I think some people are going to feel the squeeze," said Johnson.

"I think you'll see a lot of your middle class have to leave it," Pack said. "Taxes are extremely high out there. Quite a few folks won't be able to swing that."

Taxation could eventually change the make-up of Navarre Beach as more high-end condominium projects and expensive homes take the place of other less expensive residences.