A Beach Lease

In the public discussions one woman has been an outspoken advocate for exchanging her lease for fee simple title. We decided to analyze her lease. We suspect she does not realize the effect of losing the tax exempt status of her land if she exchanges her lease for a fee simple title.

1. Her total assessed value for land and house for 2016 was $208,423 (which seems extraordinarily low)

2. She has $100,000 in exemptions for senior homestead

3. Because her lease is for a fixed term SHE PAYS NO TAXES ON THE LAND which is assessed at $ 84,187

4. $208,423 – $184,187 equals a county taxable amount of $24,236 or a tax of $160.36 based on millage of 6.6165

5. Had she been taxed on the non-homestead assessed value it would have been – $717.00 (6.6165 x $108,423)

6. Had she lived anywhere else in the county the land would be taxed.

7. Her lease fee is approximately $360.00 per year

8. Her total lease fee and county ad valorem tax would be $520.36

9. She has paid $196.64 less in county taxes ($717.00 – $520.36). She does not pay taxes based on the land value because her lease is for 99 years or until 2180. This fixed term lease is true of most residential leases on the beach.

10. So much for the double taxation argument.

This can be verified by checking the foregoing for 1008 Via Deluna Drive. This calculation ignores school and other taxes that do not credit for the non-taxed land. Only the county tax allows exemption for non-taxed land.

Related Documents (PDF):

Property Appraiser (1008 Via Deluna Drive)

Real Estate Tax (1008 Via Deluna Drive)

Assignment of Leasehold Interest

Residential Lease

break-line

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