HOLMES BEACH – The West Manatee Fire Rescue District (WMFR) has prevailed in a lawsuit disputing its ability to assess commercial fees on vacation rentals.
Filed last year by Holmes Beach-based C&D Properties of AMI LLC against WMFR, the suit lists local realtor Lawrence (Larry) Chatt as its manager and owner. Twelfth Judicial Circuit Court Judge Edward Nicholas presided over the case.
The 2024 lawsuit complaint filed on Chatt’s behalf by attorney Keith Brady states that C&D Properties owns condo units 3 and 4 at 101 67th St.
According to the complaint, on May 16, 2023, the fire district passed Resolution 2023-01, a resolution that allows the district to assess vacation rentals at the commercial rate rather than the lower residential rate. The complaint says that on or about Oct. 9, 2023, the Manatee County Tax Appraiser assessed the two C&D properties on behalf of the fire district at the commercial rate.
According to the Manatee County Property Appraiser’s Office, the 2024 property tax-related TRIM notice for unit 3 included a $1,098 WMFR commercial rate assessment. The 2023 commercial rate assessment was $1,022. The 2023 and 2024 assessments were the same for unit 4. Levied at the residential rate, the 2022 WMFR assessments for units 3 and 4 were $462 each.
The complaint alleges that the fire district violated Florida Statute 509.032 by regulating vacation rentals.
“This assessment regulates vacation rentals by singling out vacation rentals as the only residential properties taxed at the commercial rate. No exemptions or exclusions excuse the F.D.’s (fire district’s) unlawful regulation of vacation rentals,” according to the lawsuit complaint that sought a declaratory judgment and injunctive relief from the WMFR assessments.
“C&D will be deprived of its right to be taxed in a lawful manner as guaranteed by the Florida Statutes if relief is not granted. C&D will suffer irreparable harm if the requested injunctive relief is not granted because its right to not be taxed in an unlawful manner will be violated,” according to the complaint.
“C&D Properties demands judgment against defendant granting relief as follows: A declaration that the West Manatee Fire and Rescue District cannot tax vacation rentals at the commercial rate because doing so violates the state preemption of the regulation of vacation rentals and therefore is invalid,” the complaint says.
The complaint sought permanent injunctive relief that would prohibit the fire district from taxing C&D Properties at the commercial rate. The complaint also sought a court order requiring the fire district to “effectuate the refund of wrongfully collected taxes from assessments to vacation rental owners.” C&D Properties also sought the reimbursement of attorney fees.
Judge’s ruling
In his May 22 written summary judgment, Judge Nicholas noted that the Florida Legislature enacted Chapter 2016-255 in 2016, which allowed assessment rates to be assessed in accordance with Florida Statute 191.009.
“In 2023, the fire district elected to take advantage of this legislative change by levying a commercial rate assessment on properties rented on such a frequent basis as to qualify as ‘transient public lodging establishments’ as defined under Florida law, even if they were zoned ‘residential’ by the local zoning jurisdiction. As a result of the change, property owner has been assessed the commercial rate for both of his condominium units as short-term vacation rentals,” Nicholas wrote.
Citing case law, he wrote, “Consequently, the district may now set rates based on the actual use of the property, in addition to the land use designation, when imposing assessments.”
According to Nicholas’ summary judgment, “Fire District Resolution 2023-01 gives as cause for this change the ‘continual rise in the vacation rental industry’ as homeowners with properties within the district’s jurisdiction increasingly used their single-family zoned residential properties as vacation rentals; and the qualification of such rentals as ‘transient public lodging establishments,’ makes them subject to ‘increased life safety inspection, enforcement and response requirements’ under state law that are ‘not otherwise applicable to single-family zoned residential structures that are not used for short-term vacation rentals.’
“These regulations demand that the fire district devote greater resources to inspect, enforce and respond to calls for service at transient public lodging establishments, exacting a greater cost in time, personnel and expenditures; and as a result, the district resolved that the dedicated resources were ‘comparable to inspection, enforcement and response requirements for commercially zoned properties.’ ”
Nicholas noted the commercial assessment rate is also now applied to other residentially-zoned properties, including daycare centers and assisted living facilities.
In closing, Nicholas wrote, “The court finds that the fire district’s rate increase of its assessment imposed on residential properties used as transient public lodging establishments, which includes vacation rentals, is not a regulation that is preempted to the state. As there is no genuine dispute as to any material fact, the fire district is entitled to final summary judgment in its favor.”
The order also says, “For the reasons set forth above, West Manatee Fire and Rescue District’s motion for final summary judgment, as to both counts, is granted. C&D Properties of AMI LLC’s cross-motion for summary judgment is denied.”
On May 29, Nicholas issued a one-page final judgment that states, in part, “This is a final judgment on the merits as to all claims. Plaintiff shall recover nothing from defendant in this action.”
According to the Manatee County Clerk of the Circuit Court website, the non-prevailing party has 30 days to file an appeal to a higher court.
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