Property appraiser questions nonprofit tax exemptions

On May 7, the Sarasota County Property Appraiser sent a letter declaring its intent to deny the automatic renewal of a property tax exemption for Marie Selby Botanical Gardens.

Although the letter does not specifically state what triggered the decision, Selby Gardens leadership is arguing the property appraiser is misapplying state law — and that other nonprofit organizations could be affected.

“We really feel this is a precedent-setting case,” said Jennifer Rominiecki, Selby Gardens president and CEO.

The office of Property Appraiser Bill Furst said it sent the same form letter to six other property owners, including Florida Studio Theatre, the Sarasota Opera, Mote Marine Laboratory and Aquarium, Gulf Coast Heritage Association and the Conservation Foundation of the Gulf Coast.

State law allows for the automatic renewal of tax exemptions, including those issued to property owners using land for charitable, religious, literary or scientific purposes. The letters note that the state requires owners to notify the property appraiser whenever the use of the land changes in a way that would affect the exemption.

“Our internal review concluded that the use(s) of the above referenced property appears to have changed,” the letter states.

The property appraiser’s office did not respond for a request for comment. Last year, the property appraiser challenged the tax-exempt status of portions of Selby’s campus. That included the Michael’s on the Bay event space, the Selby House Café and the Schimmel Wedding Pavilion.

The property appraiser pointed to a partnership with Michael’s On East as an operator on the site. Tax exemptions apply only to portions of a property dedicated predominantly to a use specified in the state statutes. The case was dismissed after the appraiser failed to provide proper notice.

Rominiecki said event rentals and on-site dining are commonplace in the nonprofit sector as a way to generate revenue. Virginia Haley, the president and CEO of Visit Sarasota County, shared the same sentiment.

“I look at our guides for meeting and events, and other than hotels, almost every one of the places we recommend for events are not-for-profits,” Haley said.

Leah Zammit, an attorney representing Selby Gardens, said the property appraiser’s decision was atypical within Florida.

Zammit pointed to a portion of state law that states “incidental use of a property” shouldn’t be a determining factor in awarding an exemption. Zammit said the lack of a definition for “incidental use” invites differing interpretations, but she said the property appraiser’s actions were atypical.

“It’s unique for the property appraiser of any county to send this for any portion of a nonprofit that has typically received tax-exempt status,” Zammit said.

Kevin Cooper, Mote’s vice president of communications and strategic initiatives, said the organization is proceeding under the assumption its tax-exempt status will be renewed after sharing additional information with the property appraiser.

Mote has a restaurant on its property that requires paid aquarium admission to access. Mote also offers venue rentals. Cooper said all business activity at Mote supports scientific aquatic research and education.

“Everything we do goes to support that mission,” Cooper said.

Sarasota Opera Executive Director Richard Russell said its notice pertained to 30 condominium units the organization owns. Russell said the opera primarily uses that space to house artists, and it makes the units available to other nonprofits for housing purposes during the rest of the year.

Selby, Mote and the Sarasota Opera all objected to the portion of the letter that said the use of their property had changed. As they await further information, they also remained steadfast in their belief their properties should remain tax exempt.

“I feel strongly this is consistent with our nonprofit purpose and mission, so I’m hopeful they‘ll agree,” Russell said.

Zammit said Selby Gardens would receive more specific information from the property appraiser by the July 1 notification deadline. Zammit said the matter could go to a hearing in front of a special magistrate, as the previous challenge did, or Selby could attempt to go directly to circuit court to maintain its exempt status.

Zammit said Selby wanted to work with Furst’s office on its interpretation of the state statutes and the use of the gardens property. Selby officials reiterated their belief the outcome of this dispute was larger than any individual organization.

“The implication is very far reaching,” Zammit said.