9 Actions Florida Should Take to Help Taxpayers Impacted by Hurricane Ian

1.     Postpone tax notices and waive penalties or interest for late tax filings in affected areas

2.     Extend the date for residents to take advantage of the tax discounts they would normally receive for paying property taxes and special assessments in November and postpone or defer the deadline for property tax installment payments

3.     Protect individual and business taxpayers from the risks for notices that they will likely not receive because their home or business addresses is not accessible anymore

4.     Issue no new audits in severely impacted areas, extend the statute of limitations and postpone existing audits that haven’t reached the assessment stage because these can’t be responded to while entire communities are still recovering

5.     Create procedures for fairly estimating taxes which can’t be calculated because records have been destroyed by the storm, moving away from the current method which significantly overestimates activity if no records are available

6.     Initiate procedures to offer payment plan assistance for late taxes, rather than resorting to the standard collection methods, like liens, levies, or bank freezes

7.     Retroactively apply the recently passed law that provides property tax refunds for residential property rendered uninhabitable as a result of a catastrophic event

8.     Provide tangible personal property relief and allow n on-residential properties rendered uninhabitable to receive property tax refunds

9.     Get Congress to pass a Disaster Tax Relief Act that includes provisions from past packages, including elements such as an Employee Retention Credit, an enhanced casualty loss deduction, and other relief provisions

Other Resources

Florida TaxWatch Statement on Hurricane Ian Recovery

Community Involvement

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Annexation in Florida

Annexation

 Annexation, in its simplest terms, is the addition of unincorporated areas into a municipality. In a state such as Florida, rapid urban growth can force cities to find ways to expand and maintain their network of goods and services to the unincorporated areas that surround them. Annexation provides plenty of inherent good for both parties involved as the municipality gains new land and additional people for its tax base, and the citizens in the newly annexed locations gain the established services that a municipality brings with it; however, there are also downsides to this expansion. The municipality must figure out how to interact and co-exist with existing county services, and how this will be funded. Existing residents of the municipality are sometimes subject to double taxation for the extension of services to the new areas, which they are already paying for within the municipality.

Annexation Under Florida Law

The legal framework for annexation is laid out in Chapter 171 of Florida Statutes. There are two main paths to annexation: voluntary and involuntary.

Voluntary

Residents of unincorporated areas are given the right by Florida law to petition a governing body of a municipality to annex their area. If the governing body determines the petition has signatures of every landowner in the proposed area of annexation, they have the option to pass an ordinance that lays out the boundaries of the area to be annexed. The annexation ordinance is only final after certain requirements for notifying the public of the proposed annexed land have been met.

Involuntary

Before starting the annexation process, the municipality must put out a report that details how they plan on providing urban services to the new areas. In this report, they must include: a map of the existing and proposed boundaries of the annexation, a plan detailing how municipal services like water and sewer will be extended, and a plan for how this extension will be financed. If a municipality wishes to annex an area, they can pass an ordinance that does so. The annexation must be “contiguous, compact, and unincorporated.”  Land owned by residents or businesses within the proposed area of annexation must be included in their entirety, and no enclaves can be formed. Before the ordinance is adopted, the governing body is required to host two public hearings. After these public hearings occur, the annexing municipality must hold a referendum for the voters who live within the borders of the proposed annexation.

 

Pros and Cons of Annexation

Florida has seen incredible urban growth in the last half century. Cities all across the state have developed into large population hubs with big economies and a web of services. It is only natural that in this urban growth, cities look to the land outside their borders as a desirable commodity. Research has shown that across the nation restrictive annexation policies have choked cities like St. Louis and New Orleans, whereas cities that encouraged growth like Charlotte have prospered. By adding regional economies into the larger municipal economy, businesses in both areas will benefit from the larger consumer population. Another benefit is the extension of municipal services into traditionally rural areas, which may have previously not had services or had sub-par services. This brings up a negative, however. Sometimes residents end up being “double taxed” where they are paying for services in the new areas that they are already paying for within their district because tax rates have to be raised to afford the extension of services. It is important to note that annexation should be approached on a case-by-case basis. Citizens must take into account their individual needs and resources before they move on with annexation.

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