DAYTONA BEACH, Fla. (Legal Newsline) – For a third and what appears to be a conclusive time, a Florida appeals court has ruled for businesses and citizens of Ocala who have been forced to pay an extra fee for fire services.
On June 19, the Fifth District Court of Appeal declared Ocala’s fire service fee an unconstitutional tax and remanded it to a trial court with instructions to figure out how to refund fees that have been collected through the years.
It is the third time the court weighed in on the class action, first ruling plaintiffs filed within the statute of limitations then overturning the denial of class certification.
Now, it has overruled a trial court decision that said the fire service fee is a valid user fee.
“(T)he consequences for a class member’s failure to pay the fire service fee include the loss of water, sewer and electric services and a lien on the property to which services are provided,” Judge Richard Orfinger wrote.
“This is economic coercion, making the payments involuntary. And, when as here, the levy of an illegal tax may become a cloud on the title to real property, payment of the tax to avoid the cloud or to avoid the imposition of a substantial property rights is not a voluntary payment.”
The appeals court also found Ocala has options for repaying class members, despite its claims the money has already been spent on fire services.
Ocala could implement bonds, sell surplus property, merge with other fire departments, reform its pension system or reduce or eliminate other services.