Florida Supreme Court Reverses Decision Regarding Referendum Approval for Tax Increment Financing
September 19, 2008
Richard B. "Rick" Stephens- Lakeland
Edward W. "Ed" Vogel- Lakeland
Michael L. "Mike" Wiener- Lakeland
On September 6, 2007, the Florida Supreme Court held that under the Florida Constitution local governments must obtain referendum approval to issue bonds with a term of more than one year and that are secured by a pledge of tax increment revenues. Strand v. Escambia County, 32 Fla. L. Weekly S550a. The decision receded from 27 years of legal precedent that had previously interpreted the applicable constitutional provision.
On September 18, 2008, the Florida Supreme Court withdrew its previous opinions and issued a substitute opinion. The substitute opinion reverses the opinion delivered on September 6, 2007, and recognizes the long-standing holding in State v. Miami Beach Redevelopment Agency, 392 So. 2d 875 (Fla. 1980), which held that tax increment financing does not involve a pledge of ad valorem taxes and therefore referendum approval is not required under the Florida Constitution.
Click on the following links to view a copy of the opinion and order:
Opinion: http://www.floridasupremecourt.org/decisions/2008/sc06-1894.pdf
Order: http://www.floridasupremecourt.org/decisions/2008/sc06-1894order.pdf
For more information, contact:
Mark Raymond
561.650.8349
mark.raymond@hklaw.com
Rick Stephens
863.499.5351
rick.stephens@hklaw.com
Ed Vogel
863.499.5356
ed.vogel@hklaw.com
Michael Wiener
863.499.5362
michael.wiener@hklaw.com
toll free: 1.888.688.8500
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