Robert Emerson v. Hillsborough County, Florida, etc. & Stacy White v. Hillsborough County, Florida, etc.

CourtSupreme Court of Florida
DecidedFebruary 25, 2021
DocketSC19-1250 & SC19-1343
StatusPublished

This text of Robert Emerson v. Hillsborough County, Florida, etc. & Stacy White v. Hillsborough County, Florida, etc. (Robert Emerson v. Hillsborough County, Florida, etc. & Stacy White v. Hillsborough County, Florida, etc.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert Emerson v. Hillsborough County, Florida, etc. & Stacy White v. Hillsborough County, Florida, etc., (Fla. 2021).

Opinion

Supreme Court of Florida ____________

No. SC19-1250 ____________

ROBERT EMERSON, et al., Appellants.

vs.

HILLSBOROUGH COUNTY, FLORIDA, etc., et al., Appellees.

____________

No. SC19-1343 ____________

STACY WHITE, Appellant.

February 25, 2021

CANADY, C.J.

In these consolidated cases we consider the constitutional validity of an

amendment to the Hillsborough County Charter that was adopted in an initiative

election. Through that charter amendment the voters approved both a transportation surtax and elaborate directives for allocating the tax proceeds. But

the spending directives are unconstitutional in that they conflict with a state law

that gives the county commission the authority to allocate such funds. Because it

cannot reasonably be said that the voters would have approved the tax without the

accompanying spending plan, we must strike the charter amendment in its entirety.

I. Background

The charter amendment enacted a one percent transportation sales surtax

coupled with various provisions governing the distribution and use of the proceeds

of the tax. Subsequently, the Hillsborough County Commission entered an

interlocal agreement “deem[ing] appropriate” the allocation of funds provided for

in the charter amendment. The commission then authorized the issuance of bonds

to be funded by a portion of the proceeds of the surtax. We have for review a

judgment of the circuit court validating the bonds. See art. V, § 3(b)(2), Fla. Const.

And we have accepted pass-through jurisdiction—based on the Second District

Court of Appeal’s certification that the case involved issues of great public

importance requiring immediate resolution by this Court—of a judgment of the

circuit court in a declaratory judgment action brought by opponents of the charter

amendment, which upheld the surtax levy but invalidated portions of the charter

amendment governing the use and distribution of surtax proceeds. See id. art. V,

§ 3(b)(5).

-2- The circuit court based its invalidation of portions of the charter amendment

on a conflict between the amendment and section 212.055(1), Florida Statutes

(2018), the statute authorizing enactment of the local transportation surtax by

referendum, which specifically grants the county commission discretion

concerning the application of surtax proceeds within the statutory framework.

Although the circuit court invalidated significant portions of the charter

amendment related to the allocation and use of tax proceeds, it nonetheless upheld

the validity of the surtax and certain other elements of the amendment, reasoning

that the surtax and the other provisions it found valid could properly be severed

from the invalid portions.

Contending that the trial court erred in its decision to sever the surtax and

other provisions of the amendment from those parts of the amendment that it

determined to be unconstitutional, the Appellants seek reversal of both trial court

judgments. Hillsborough County and Appellees/Cross-Appellants contend that the

trial court should have upheld the charter amendment in its entirety, arguing in the

alternative that the portions of the amendment severed and upheld by the trial

court—most importantly, the surtax levy—should not be disturbed.

We conclude that the charter amendment transgresses the authority reserved

to the county commission by the surtax statute and that no portion of the

amendment could properly be severed. Therefore, we reverse the declaratory

-3- judgment to the extent that it upholds any portion of the charter amendment, and

we reverse the bond validation judgment, which necessarily falls with the

invalidation of the surtax.

II. The Surtax Statute

Section 212.055(1)(a) authorizes charter counties to “levy a discretionary

sales surtax, subject to approval by a majority vote of the electorate of the county

or by a charter amendment approved by a majority vote of the electorate of the

county.” The discretionary surtax may be levied at a rate “up to 1 percent,”

§ 212.055(1)(b), and any “proposal to adopt a discretionary sales tax . . . must be

approved in a referendum held at a general election,” § 212.055(1)(c)1. Of crucial

importance to the issues presented in this case is the provision of section

212.055(1)(d) that the “[p]roceeds from the surtax shall be applied to as many or

as few of the uses enumerated” specifically in the statute “in whatever combination

the county commission deems appropriate.” (Emphasis added.) A wide range of

permitted transportation related uses are set forth in subsections 1 through 4 of

section 212.055(1)(d).

The statutory provisions related to the surtax must be viewed against the

backdrop of the specific recognition in the Florida Constitution of the Legislature’s

authority over taxation in the state. Article VII, section 1, subsection (a) of the

Florida Constitution provides that “[n]o tax shall be levied except in pursuance of

-4- law,” that “[n]o state ad valorem taxes shall be levied on real estate or tangible

personal property,” and that “[a]ll other forms of taxation shall be preempted to the

state except as provided by general law.” Moreover, counties shall “be authorized

by law to levy ad valorem taxes and may be authorized by law to levy other taxes,

. . . except ad valorem taxes on intangible personal property and taxes prohibited

by [the] constitution.” Art. VII, § 9(a), Fla. Const. So it is clear that the

Legislature has plenary authority regarding the surtax.

III. The Charter Amendment

The “surtax for transportation improvements” amendment to the

Hillsborough County Charter at issue here—codified as article 11 of the charter—

was adopted in a referendum conducted in the 2018 general election based on a

citizens’ initiative proposal. See Hillsborough County, Fla., Revised Charter art.

XI (2018). Article 11 contains a detailed scheme for managing the distribution and

use of the proceeds of the one percent sales surtax. Id. As stated in article 11’s

purpose section, the “purpose of the surtax” is identified as funding a variety of

categories of “transportation improvements throughout Hillsborough County.” Id.

§ 11.01. In connection with this broadly stated purpose, article 11 states that “[t]he

proceeds of the surtax shall be distributed and disbursed in compliance with

[section 212.055(1), Florida Statutes,] and in accordance with the provisions of . . .

article 11.” Id.

-5- The provision establishing the levy of the surtax specifies that all proceeds

of the tax “shall be expended only as permitted by this article 11, [section

212.055(1), Florida Statutes], and in accordance with the purpose set forth” in the

amendment. Id. § 11.02. The surtax, which had an effective date of January 1,

2019, “shall remain in effect for a period of thirty (30) years.” Id. § 11.03.

Article 11 contains an elaborate scheme with provisions governing the

distribution to various entities of surtax proceeds, provisions governing the use by

those entities of the funds distributed, and provisions establishing and empowering

an independent oversight commission (IOC). The proceeds of the tax are

designated for distribution in three “portions”—the general purpose portion, the

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Robert Emerson v. Hillsborough County, Florida, etc. & Stacy White v. Hillsborough County, Florida, etc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-emerson-v-hillsborough-county-florida-etc-stacy-white-v-fla-2021.