Case Citation
Legal Case Name

Strand v. Escambia County Case Brief

Supreme Court of Florida2008Docket #1723304
992 So. 2d 150 2008 WL 4240151

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: The Florida Supreme Court upheld a county’s plan to issue bonds funded by future increases in ad valorem tax revenue without a voter referendum, holding this did not violate the state constitution because the county’s underlying taxing power was not pledged to bondholders.

Legal Significance: Affirms the precedent that tax increment financing does not require a voter referendum under the Florida Constitution so long as bondholders cannot compel the government to levy ad valorem taxes, thereby distinguishing a pledge of revenues from a pledge of the taxing power itself.

Strand v. Escambia County Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Escambia County established an improvement district and authorized the issuance of up to $135 million in bonds to finance a road-widening project. The bonds were to be repaid through a tax increment financing (TIF) mechanism. Under this scheme, the County would annually appropriate to a trust fund an amount equal to the ad valorem tax revenue generated by the increase in property values within the district over a base year (“Tax Increment Revenues”). The bond resolution specified that the bonds were payable solely from funds deposited into the trust, including the Tax Increment Revenues and supplemental non-ad valorem revenues if needed. Crucially, the resolution stated that the bonds did not constitute a pledge of the County’s full faith, credit, or taxing power, and that bondholders would have no right to compel the levy of any ad valorem tax. Dr. Gregory Strand intervened in the bond validation proceeding, arguing the financing scheme was functionally equivalent to pledging ad valorem taxes, thus requiring a voter referendum under Article VII, Section 12 of the Florida Constitution. The trial court validated the bonds, and Strand appealed.

Court Holding & Legal Precedent

Issue: Does a tax increment financing plan, where bonds are repaid from annual appropriations of ad valorem tax revenues but bondholders cannot compel the levy of such taxes, constitute bonds “payable from ad valorem taxation” requiring a voter referendum under Article VII, Section 12 of the Florida Constitution?

No. The bonds are not “payable from ad valorem taxation” within the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequ

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Legal Issue

Does a tax increment financing plan, where bonds are repaid from annual appropriations of ad valorem tax revenues but bondholders cannot compel the levy of such taxes, constitute bonds “payable from ad valorem taxation” requiring a voter referendum under Article VII, Section 12 of the Florida Constitution?

Conclusion

The decision solidifies the distinction between a pledge of revenues and a Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco la

Legal Rule

Under Article VII, Section 12 of the Florida Constitution, bonds are not Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat

Legal Analysis

The Court affirmed the bond validation by applying the doctrine of stare Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis

Flash-to-Full Case Opinions

Flash Summary

  • A local government may issue tax increment financing (TIF) bonds without
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in volu

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