l. This is an action for declaratory relief, contesting the legality and validity of the

Transcription

1 Filing # E-Filed :51:33 PM IN AND I]OR THE CIRCUIT COURT OF T}IE NINTH JUDICIAL CIRCUIT IN AND FOR ORANGE COTINTY, FLORIDA HOST INTERNATIONAL, INC., A Delaware corporation, CASE NO.: Plaintifl RICK SINGH, as Property Appraiser for Orange County, F'lorida; SCOTT RANDOLPH, as Tax Colleotor for Orange County, Florida; and FLORIDA DE"ARTMENT 0F REVENUE, a state agsncy of the State of Florida. Defendants. COMPLAINT The plaintiff, HosT INTERNATIONAL, INC. (.the Taxpayer"), sues the Defendanls, and alleges: l. This is an action for declaratory relief, contesting the legality and validity of the 2016 assessments of leasehold property located in Orange County, Florida, and the taxes arising from those assessments. 2. This action is brought pursuar$ to secti ns 26.AftQ)@), and 68.01, Chapter 86, and pafrs ti and III of Chapter 194, Florida Statutes (). It involves taxes assessed against a nongpvemmental lessee of governrnent propefiy under the provision of Section 196'199(2), Florida Statutes,' This plaintiff is in doubt about its legal obligations to pay taxes based upon the assessment imposed by the Defendant Property Appraiser and is in further doubt whether the legal protection afforded taxpayers under Florida law is being applied by this Defendant' n Henceforth, all references to the Florida Statutes are to the cument (2016) Florida Statutes' orldocs I

2 3. The Taxpayer is a Delaware corporation authorized to do business in Florida. It is the party responsible for paying the taxes on the subject property as the lessee of a nongovernmental leasehold, The property is identified in paragraph 7 of this Complai'nt. The Taxpayer/plaintiff is a subsidiary of HMSHost Corporation, and continues to do business under the name oohmsi{ost." 4. RICK SINGH ("the Appraiser") is the duly constituted and elected Property Appraiser of Orange County, Florida, and this action is brought against him in that official capacity. S. SCOTT RANDOLPH ("the Collector") is the duly constituted and elected Tax Collector of Orange County, Florida, and this action is brought against him in that official capacity. 6. FLORIDA DEPARTMENT OF REVENUE ("DOR") is a oollegial agency of the State of Florida. Its head is the Govemor and Cabinet. Service of process on DOR is effected by serving a copy of this Complaint on its Agency Clerk' 7. The Taxpayer leases space in the Orlando International Airport temrinal where it provides food and beverage service to visitors to the Greater Orlando area and to airpo* and airline employees. This leasehold includes food and beverage service facilities at a number of locations tfuoughout the main and airside terminal structures. The Appraiser has assigned eight separate parcel identification numbers to this leasehold, reflecting tho separate operations. The Appraiser quadrupled (x4) the assessment of thsse parcels between and, and sextupled (x6) the assessment from those of his predecessor in office (in ). The subject property consists of seven parcels identified by the Appraiser with property control numbers. The assessment was adjusted downward, overall, by 3% ta 4Ya for 201 6, but inconsistently between parcels. Those tax orldocs t5072s6st 2

3 levies subject to the assessment iucrease limitations ("caps") imposed under Article VII, Section a(h) of the Florida Constitution, and Section , Florida Statutes, were increasedthe full 10% At $1i,307,154 $12,451,452 $3,119,987 $3,1 16,167 s2,014,971 Capped Valuef $2,950,120 $2,681,927 $2,438,1l5 $2,216,468 $2,014, I 6 CaPPed Valuet $417,257 $436,015 $109,253 $109,119 $84,667 $123,961 $112,692 $102,447 $93,134 $ Ar6 20t3 2An I $47,365 s47,230 $11,837 $11,823 $15,287 $5,377 $4,888 94,444 $4,040 $3,673 20r6 20t4 2Ar $986,258 $983,456 $246,428 $246,127 $ 1 59,145 CappedValuet $233,005 $211,823 $192,566 $175,060 $159,145 orr-docs 1s

4 20r r fi14,212,887 $14,172,494 $3,551,232 $3,546,885 *2,296,420 s3,362,189 $3,056,535 $2,778,668 s2,526,a62 s2,296,420 2Ar6 2Al3 2A $3,923"1,71 $3,912,022 $980,239 $979,039 $759,680 $1,186,089 $1,078,263 $980,239 $979,039 $759, $32,604,831 s32,512,169 $8,146,650 $8,136,676 $5,980,i37 s8,755,519 $7,959,563 97,235,966 $6,578,151 $5,980,137 tassessed values for non-school tax levying governmental entities are "capped" at increases of no more than layo ayear, with a base set by Appraiser Donegan's assessment of market value in. School tax tevies are not capped and school taxes are based on the Appraiser's market' or just value. Art. VIl, Sec. 4(g) an*d (h), Fla' Const' g. In doing so, the Appraiser has assigned erroneous assessments to these parcels for 201 6, carrying forwardan enormous increase in value, absent any measuable changes in the actual market. His err-or is so egregious as to go beyond merely being erroneous and is arbitrary and capricious. His actions reflect a value increase by a factor of 4 to 6 times previous determinations orldoc:s t

5 of market or just value. The Appraiser's assessments disregard the requirements of Section t g3.0 I 1 and depart from professionally accepted appraisal practices. The Appraiser has assessed the property many nnrltiples of its just value. Further, the Appraiser's assessment is arbitrarily based on appraisal pracrices which are different from the appraisal practices generally applied by this Appraiser to comparable property in Orange County, as well as by all other Florida appraisers in assessing food and beverage leaseholds at other Florida airports. Consequently, the assessment is unlaut'ul, unjust, excessive, arbitrary, invalid, and illegal' g. The Taxpayer has paid to the Collector the amount which it admits in good faith to be owing and due and the Collector has provided his receipt, which is attached as page 3 of Composite Exhibit.,A.r, Accordingly, the requirements of Section (3) have bsen met. 10. The Collector is made a party to this action beeause the Court must have jurisdiction sver him to insure compliance with the requirements of Section 194'171(3). WHEREFORE, the Plain-tiff prays that this Courl grant the following relief: A. Set aside the assessments for the property made by the Appraiser for B. Establish th just value of the subject property, taking into consideration all criteria set out in Section 193,01 1, Florida Statutes, professionally accepted appraisal practices, and utilizing the appropriate appraisal methodology applicable to the subject property as of 1 lanuwy C. Tax against the Defendants the costs of this suit, as determined by the Court. orldocs 150'12966

6 Plaintiff. D. Grant such other relief as shall be deemed appropriate to provide tull relief for the Michael D. Crosbie Florida Bar No.: Shutts & Bowen LLP 300 S. Orange Ave., Suite 1000 Orlando, Florida Telephone: (407) Facsimile: (407) mcrosbie@.shutts.com and Berliamin K. Phipps Florida Bar No.: 63 t 51 Phipps & Howell Post Office Box 1351 Tallahassee, Florida 3XA2 Telephone: (850) Facsimile: (850) ber@,phippq:.howell, com Attorneys for the Taxpuyer orr,docs 150?2966 I