Villages of Avignon Community Development v. Ken Burton, Jr., Manatee County Tax Collector
215 So. 3d 127
| Fla. Dist. Ct. App. | 2017Background
- Manatee County assessed unpaid ad valorem taxes on three parcels; the County sought issuance of tax certificates to satisfy those liens.
- Villages of Avignon CDD had recorded unpaid special-assessment liens on the same parcels and foreclosed, obtaining title subject to the County's tax liens.
- The Villages argued its CDD assessment liens are statutorily "coequal" with state and local tax liens under section 190.021(9) and that Kostecos v. Johnson prevents the County from causing tax certificates to be issued while the CDD still holds title.
- The Tax Collector filed a declaratory-judgment action seeking direction on whether tax certificates may be issued and whether such certificates would be subject to the CDD liens.
- The trial court concluded County ad valorem tax liens were "superior" to the CDD liens and authorized issuance of tax certificates, to be sold subject to the Villages’ assessment liens.
- The appellate court held the trial court erred to label County liens "superior" (statute makes them coequal), but affirmed that the Tax Collector may issue tax certificates subject to the CDD liens; the court certified to the Florida Supreme Court a question about Kostecos’s continuing applicability.
Issues
| Issue | Plaintiff's Argument (Villages) | Defendant's Argument (County/Tax Collector) | Held |
|---|---|---|---|
| Whether CDD assessment liens are coequal with ad valorem tax liens | §190.021(9) makes CDD liens coequal with state, county, municipal, and school board taxes | County did not dispute statutory coequal status | Court: CDD liens are coequal; trial court erred calling County liens "superior" |
| Whether the County may issue tax certificates while CDD holds title | Kostecos requires County's tax lien be held in suspension when CDD owns property, barring issuance until CDD sells to third party | Statutes enacted after Kostecos (e.g., §197.552, §190.024) contemplate tax certificates issued subject to surviving CDD liens; County may proceed | Court: Kostecos construct is questionable; County may issue tax certificates subject to CDD liens; affirmed |
| Whether the CDD’s foreclosure without joining the County prevents enforcement of County lien | Villages: By foreclosing first and taking title, County’s lien should be suspended as in Kostecos | County: CDD could have joined County in foreclosure; legislative scheme preserves coequal liens and allows tax certificates to be sold subject to CDD liens | Court: CDD could have joined; legislative changes undermine Kostecos remedy; County not barred from issuing certificates |
| Whether appellate court should resolve or certify the broader rule from Kostecos | Villages urged continued application of Kostecos | County urged statutory scheme supersedes Kostecos; tax certificates can be issued subject to CDD liens | Court: Declined to fully adopt Kostecos; certified to Fla. Supreme Court the question of Kostecos’s continuing validity |
Key Cases Cited
- Kostecos v. Johnson, 85 So. 2d 594 (Fla. 1956) (created "suspended lien" construct where one governmental lienholder acquired title)
- Robertson v. State, 829 So. 2d 901 (Fla. 2002) (appellate court may affirm correct result even if lower court gave wrong reasoning)
- Palm Beach Cty. Canvassing Bd. v. Harris, 772 So. 2d 1273 (Fla. 2000) (courts should give effect to all statutory provisions and avoid rendering any clause meaningless)
- Stratton v. Sarasota County, 983 So. 2d 51 (Fla. 2d DCA 2008) (discussing interplay of tax-sale statutes and surviving liens)