1. This is an action for declaratory relief where the amount in controversy is in
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1 Filing #' E-Filed 05/ :1a:a9 PM LAKETAND HIGHLANDS ROAD FACILITY, LLC, IN THE CIRCUIT COURT OF THE 1O'* JUDICIAL CIRCUIT IN AND FOR POLK COUNTY, FLORIDA CASENO. S olf c-fe f '7?3 Plainti[f, vs. MARSHA FAUX, as Property Appraiser of Polk Counry, Florida;JOE G. TEDDER, as Tax Collector o[ Polk County, Florida; and MARSHALL STMNBURG, as Executive Director o[ the S:ate of Florida Department of Revenue, Defendants. COMPLAINT FOR DECLAzuITORY RELIEF Plaintiff, Lakeland Highlands Road Facility, LLC ("Taxpayer"), sues Defendants, Marsha Faux, as Property Appraiser o[ Polk County, Florida ("Property Appraiser"); Joe G. Tedder, as Tax Collector of Polk County, FJori.da ("Tax Collector"); and Marshall Stranburg, as Execur.ive Director of the State of Florida Deparlment of Revenue ("Executive Director"), and alleges: GENEML ALLEGATIONS 1. This is an action for declaratory relief where the amount in controversy is in excess ol $i5,000.00, exclusive o[ interest, attomeys' fees and costs. This Court has exclusive and original jurisdiction over this action pursuant ta Florida Statutes gs , , and 194.1/1. Venue is proper in Polk County as the real property at issue and corresponding ad valorem taxes are situated here. Z. Taxpayer is a duly registered Florida limited liability company and is authorized to conduct business in the State of Florida. llr:)in'.t;ttt VOcU, IIANDt,IiR& ItODnrOUriz, P.A., A rl.oll\f,l'sa'l'ii\t.,2tt-n lt,oon,l{r/l\fl'l'o\\,t:r l00s,i.:.2n1)stnh.x',lll\)tl, lrr.orrt] 'llil..(30J].577.,1177.1;^x(305)
2 LakerandHighiandsf;#,l;fr:,f,"?f Y:iT.?,ii'Xi Page2 o[7 3. Property Appraiser is the duly elected Property Appraiser of Polk County, Florida, and is charged with the responsibility of discharging the duties of said office. 4. Tax Collector is the duly appointed and acting tax collector for Polk County, Florida, and is charged with the responsibility o[ discharging the duties o[ that office. 5. Department is named as a Defendanr to this actlon as mandated by Florida Statutes $i9+.181(5), because the tax assessment is also being contested on the grounds thal ir is contrary to the laws and Consritution of the State o[ Florida. 6. Taxpayer is the owner of real property located in Polk County and identified as Folio No (the "Property"), 7, As of January 1,2Q14, the Property was, and remains, operating as a non-profit assisted living facility licensed under Chapter 429, Florida Sratutes. 8, Taxpayer is wholly owned by its sole member, Community Living Oprions, Inc., an Illinois Non-Profit Corporatiott ("CLO"), which is recognized under the Internal Revenue Code as a 50I(cX3) charitable tax-exempt organization, 9. Since Taxpayer is a single member owned lirnited liability company, the lntemal Revenue Service treats Taxpayer as a tax-exempt organization because its sole member, CLO, is an Intemal Revenue Code 501(c)(3) charitable tax-exempt organization. 10. Florida Statutes $ provides that "property owned by a limited liability company, the sole member o[ which is an exempt entity, shall be treated as if the property were owned directly by the exempt en[ity." Since the Property is owned by Taxpayer and operating as a norr-profit assisted living facility, whose sole member, CLO, is a charitable rax-exempt organization, the Property is owned by an exempt entity and being used for an exempt purpose" taxation. 11, Historically, the Property received a charitable exemption lrom ad valorem l{l'l\nr.:rl'\/ocr:t, )\.IAir*Dr,rn & IloDlucuuz, l].a., Al'l'oRr-El's A1'L$v, 291'rI l;loon, i\'il,\r'rl'l'i)\1.8r 100 S.ti. 2ND S'utEIif, I.Ili\I.fl, llorrd,r iislil!-2l,ij0.'ltt., (30$ 577-t177. l.^x (305) 37S-6036
3 Lakerand Highlands f;f; 'J::il,'i,?r1x:ff,I,i?5: Page 3 of However, as a result of a restructuring in 2012, and the ensuing change in ownership from a Florida Not For Profit Corporation to an lllinois Not For Profit Corporation, the exemption was thereafter removed by the Property Appraiser. Despite the change in ownership enlities, there was no change in operations at the Properry. 13. During 20L4, Taxpayer filed with the Property Appraiser an Ad Valorem Tax Exemption Application in connection with the Property. 14, Property Appraiser unlawfully denied Taxpayer's exemption application based entirely on the flact that Taxpayer's sole member, CLO, is an lllinois Not For Profir Corporation, rather than being a Florida Not For Profit Corporation, Thereafter, pursuant to Florida Statutes g , Taxpayer timely filed a petition with the Polk County Value Adjustmenr Board ("VAB") challenging the Property Appraiser's denial. 15. At the VAB hearing, the representative for the Property Appraiser's Office stipulated that, other than being a floreign non-profit corporation, Taxpayer complied wirh all other requirements set forth in S , Florida Statutes. Thereafter, the Special Magistrare appointed by the VAB denied Taxpayer's petition for the same reason as the Property Appraiser stating, "because the sole member here is a Not For Profit set up in a different state, it does not meet the exemplion requiremen$." A true and correct copy of the Decision of the Value Adjustment Board is attached hereto as Exhibit,'A." COUNT I - DECLAMTORY RELIEF: FLORIDA STATUTES O (1) IS UNCONSTITUTIONAL AND TAXPAYER IS ENTITLED TO..CH,ARITABLE EXEMPT}ON 16. Taxpayer realleges paragraphs 1 through 15 above. 17. Flondasfatutes (1) requires nonprofit homeslar the aged applicanrs to be a corporation not for profit, or a Florida limited partnership, the sole general pafiner of which ls a corporation not for profit pursuant to chapter 617, Florida statutes. lltinner'l'vocu, i\{il\duxr & ItoDlucuuz, l}.a., A"ITonN[rs A'r I.A\\', 29flr I:.oott, trlr,\ml 'l'o\1,r,:r 100 S.D. 2Nl) S1'nEr.r, :l,ir.\,vr, It.oRrDA 'nil, (30,t).577-,1177. Ir,lx (30.5) 373.{j03d
4 La k er a n d Hi ghiand s f,"lioj::fi f:tffi?:il,"fl iii: Page I of Flarida Statutes S (1) is unconstir.urional because it discriminates against, and unlawfully treats difflerently, foreign not for profit entities from F]orida not for profit entities, There is no rational basis for the disparate and unfavorable treatment that Florida Statutes S 196,1975(1) creates against foreign nor for profit entities, Florida Statutes S (1) violares equal protection and due process rights which are afforded under the United States Constitution and the Florida Constitution. See WHW,Inc. v, Borough oj Glassboro,393 U.S. 117 (1968) and Miller v. Board of Pensions, 43I So.2d 350 (FIa. 5th DCA lg83xrequiring the Property Appraiser to apply provisions of Florida Statute g to applicant as if Florida corporation criterion did not exiso. 19. It was unlawful for the Property Appraiser and the VAB to each deny Taxpayer o[ its requested exemption from ad valorem taxation and Taxpayer is contesting both of the unlawful denials. 20. In order to preserve its right to appeal the denial of its charitable exemprion request, Taxpayer has paid in full the ad valorem taxes assessed by the Property Appraiser as required under Florida Statutes (4). Evidence o[ such payment is arrached as Exhibit "B', 21" There is a bona fide, actual, present practical need for the declaration. 22. The declaration deals with a present controversy as to a concrete state o[ fac(s. 23. Taxpayer's rights are dependent upon the facts or the law applicable to the facts. 24. Taxpayer has an aclual, present, adverse and antagonistic interest in the subject matter, either in lact or law, plocess. 25. Taxpayer's antagonistic and adverse interests are all belore the court by proper RNNERT \rocl:l i\,ra"\dlulr & ItoDRrcuEz, I'.4., AIToRN*ns AT l.i\w, 2gr'lr I,1.ooR, tr,ill\.rr'i'o$tfi 100 S.E. 9ND S'lnErx', I'lrAMr, florrda 8ill3l.2l30.'ltl, (30J) Irtu\ (30J) 37&60:16
5 LakerandHighrandsf,"il+l?iJ;'l#T:1:fl,ii:il Page 5 of The relief sought is not merely the giving of legal advice by the courts or the answer to questions propounded from curiosity. 27. Taxpayer will be irreparably damaged if the charitable exemption is denied lor 2014 and Taxpayer is forced to pay the full ad valorem tax based on the $2,765,564 assessment. judgment: WHEREFORE, Taxpayer respectfully requests that this Court enter a declaratory i, Declaring that Flando Statutes S (1) is unconstitutional to the exrenr rhar it unlawfully discriminates against, and unjustly treats differently, foreign not for prolit entities from Florida not for profit entities; ii. Declaring that Taxpayer is entitled to exemption from paying any ad valorem taxes in 2014 in connection with the Property; iii. Directing such adjustments between the Taxpayer and Defendants as may be necessary in connection therewith, including but not limited to, refunding the 2014 ad valorem taxes paid by the Taxpayer; iv, Awarding Taxpayer tts costs pursuant to Florida Statutes $ ; and, v. Granting such other and further relief as this Court deems just and proper. COUNT II. DECI-{RATORY RELIEF: TAXPAYER IS ENTITLED TO CHARITABLE FROM AD VALOREM TAXATION UNDER FLORIDA STATUTES $ (IN THE ALTERNATIYE TO COUNT I) 28. Taxpayer realleges paragraphs 1 through 15 above. 29. Florida Statutes S provides that "[a]ll property owned by an exempt entity...used exclusively for exempt purposes shall be totally exempt frorn ad valorem laxation." llf,ntihn'vocel trijl\dlrn & nodrrcuez, P,A., A'l-loRNEl's A't'Ir'\\Y, 29r[ l.loon, ].Inyr'l'o1r,f,lt I00 S,tl,,,.\D STnrnr, llrrvr, l.lomd..l. 3313t-213'0.'fEL.l30'l 577"4177. I.ir\ (305) 373"0036
6 Cornplaint for Declaratory Relief Lakeland Highlands Road Facility, LLC v. Faux, et al. Page 6 of Florida Stotutes S (3) provides that "".. property owned by a limited liability company, the sole member of which is an exempt enlity, shall be treated as if the property were owned directly by the exempt entity." Both Taxpayer and CLO are exempt entities. 31. Since the Property is owned by an exempt entity and used exclusively for exempt purposes, and there is no statute which either (i) specifically addresses exemptions for non-profit "assisr.ed living facilities;" or (ii) places requirements beyond the terms of. Florida Statutes $ on non-prolit "assisted living facilities," Taxpayer is entitled [o a charitable exemption lrom ad valorem taxation under Flonda Statutes g It was unlawful for the Property Appraiser and the VAB to each deny Taxpayer of its requested exemption from ad valorem taxation and Taxpayer is contestlng both o[ the unlawlul denials. 33. In order to prese:ve its right to appeal the denial o[ its charitable exemption request, Taxpayer has paid in full the ad valorem taxes assessed by the Property Appraiser as required under Florida Statutes (+). Evidence of such payment is attached as Exhibit "8". 34. There is a bona fide, actual, present practicalneed for the declaration. 35. The declaration deals with a present controversy as to a concrete state ol facts. 36. Taxpayer's rights are dependent upon the lacts or the law applicable to the facts. 37, Taxpayer has an actual, present, adverse and antagonistic interest in the subject matter, either in fact or law. process. 38. Taxpayer's antagonistic and adverse interests are all before the court by proper llen.\*l:nt Vocr:r, ITANDLEB & llodluctrl:z, P./\., ATToRNEIS AT Irsv, 29t'tt lloon, l\'{ta,yl '11)\vu.B l00s.li,9ndsrrri.;r, IIrAr{t, I\.oruDA AAlSl-2130"I'EL.(305) Frtx(305}373-(i030
7 Lakerand Highr a,d s ff.'ilhi,f,"ffi Y:?T.x,i:T: Page 7 of lhe reliel sought is not merely the givlng ol legal advice by the courts or the answer to questions propounded frorn curiosity. 40, Taxpayer will be irreparably damaged if the charitable exemption is denied lor 2014 and Taxpayer is forced to pay the full ad valorem tax based on the $2,765,564 assessment. judgment: WHEREFORE, Taxpayer respectfully requests that this Court erlter a declaratory i, Declaring that Taxpayer is entitled [o exemption lrom paying any ad valorem taxes in 2014 in connection with the Property; ii. Directing such adjustments betrveen the Taxpayer and Delendants as may be necessary in connection therewith, including but not limited to, relunding the 2014 ad valorem taxes paid by the Taxpayer; iii. Awarding Taxpayer its costs pursuant ts Floridastatutes $ ; and iv. Granting such other and further reliel as this Court deems just and prope r, RENNERT VOGEL MANDLER & RODRIGUEZ, P.A. Attomeys for Plainti[f 100 S.E. Second Street, Suite 2900 Miami, Florida Telephone: (305) Telefax: (305) Primary ; servicelax@rv:rtll.ew.com Secondary djuarez@rvm.(lg.w.cont By Florida Bar No JASON R. BLOCK Florida Bar No ANDREWJ. COHN Florida Bar No lll:nl\l:rf trfoc!:t,llandr.rir& llodtu$lr!]a, 1,.A., A'rroBNl:rs A'r'IA\\" rllrl n-oot, ilrayr'l'(xyr:.r 100 S.f:. 2:\D Slru:rr, llr,1"\il, l.l.onrda ilil '11il,. (i 0.5) 577-,1177. f.1,\ (8fir) 1J73.601)6
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