Manatee County Waterfront Owners Receive Property Tax Relief… If Only a Little

Small-time waterfront lodgings reeling from high property tax rates and the threat of redevelopment will finally get some relief… if only a little.

Manatee County commissioners unanimously approved a plan Tuesday to allow some of those businesses to defer a portion of their taxes until the properties are sold or change use. The measure is billed as an emergency option for small beach and riverfront businesses struggling to make ends meet due to increasingly high property taxes.

“This is not a panacea for everything. It’s more of a lifeboat,” said Manatee County Commissioner Pat Glass.

The Florida State Legislature agreed earlier this year to allow waterfront lodgings to qualify for tax deferrals.

Manatee County is believed to be one of only a handful in Florida to take advantage of it, but that could very well change. Officials from Sarasota city and county say they also want to provide incentives to keep waterfront businesses open, and will watch Manatee’s program closely.

The Florida property tax deferment plan is meant to help people like Tom and Sabine Buehler, owners of Haley’s Motel on Anna Maria Island.

Skyrocketing insurance and property tax rates may mean their modest, 13-room lodging — they say it has “1953 island charm” — will soon be a thing of the past.

“Hopefully, this is just a first step and they provide other opportunities for us,” said Sabine Buehler, who doesn’t expect to be able to make next month’s Florida mortgage payment.

Inexpensive motels like Haley’s Motel represent the character of a fast-disappearing Old Florida and help bring tourism to the area, local business owners say.

“When resorts get a fever, my business gets the flu. These people are on the brink. If they go down, I go down,” said Wayne Genthner, owner of Wolfmouth Charters on Longboat Key.

The deferred taxes would be those normally due that are greater than a 5 percent increase in a waterfront business’ property tax valuation, based on the 2002 appraisal. Business owners would have to pay interest on the deferral at a variable rate, likely to hover around 7-8 percent, not to exceed 9.5 percent.

Only taxes due to the county — not school district, municipal or other levies — may be deferred. Any recreational and commercial real estate abutting “navigable water bodies” in Manatee County and meeting strict financial requirements would qualify for the deferral.

County officials have no idea how many businesses will ultimately qualify or seek deferrals, but have set aside $250,000 in this year’s budget for the program, said county Finance Director Jim Seuffert.
Critics of such deferrals say they only amount to breaks for a select group of constituencies and don’t solve the overall problems with the tax system, such as the assessment system and government spending, but citizens having a hard time making the Florida home loan payments each month will take what they can get.

“This is a patch. What are they doing with other groups in the county that are facing high property taxes?” asked Harvey Bennett, of Florida TaxWatch, a non-partisan watchdog group.

Sarasota County Budget Manager Jeff Seward said if Manatee’s program passes legal muster, Sarasota County plans to adopt something similar. The city of Sarasota also would probably support such a plan, but no one has brought it up, said City Manager Mike McNees. Charlotte County also has not discussed a “working waterfront” proposal.

The deferral would become a lien on the property, something that may or may not appeal to many struggling business owners.

The Buehlers bought their motel in 2002 and spent $8,000 in taxes for that year. They paid $42,000 this year. Add to that their monthly expenses, not including taxes or insurance, of about $30,000. They take in about $57,000 a month during the peak season. The deferral, which they would realize on their upcoming tax bill, would total about $15,000.

This couple and many more like them would have a difficult time with Florida home mortgages if not for this last-ditch relief effort. Currently, a property’s assessed valuation is based on its highest and best potential use, which in recent years has meant condominiums.

The county is currently tweaking a proposal for the Legislature that would call for changes to the state’s tax law to address how these businesses are assessed, said Patricia McVoy, senior assistant county attorney.

In the meantime, a tax deferral is better than nothing.