Moving all of Longboat Key to Sarasota could save some residents on their taxes

Whether all of Longboat Key is absorbed by Sarasota or Manatee counties, it could very well be up to its residents.

In his last joint meeting between town commissioners and Sarasota County commissioners, Town Manager Dave Bullock presented an analysis of the tax differences that town residents pay.

When it boils down to it, residents in the Manatee County portion of the town pay $2.5 million more in ad valorem taxes than they would if their homes were in Sarasota County.

Sarasota County’s formation in 1921 effectively sliced Longboat Key in two, right around where University Parkway exists today, Bullock wrote in a memo to the town commission last month. The town of Longboat Key wouldn’t be incorporated until 1955, but until then most of the island’s residents lived on the northern portion of the island.

The prime location between the Gulf of Mexico and Sarasota Bay eventually made property values skyrocket.

“We became a really popular financial support locality for our two counties,” Bullock said.

The counties together get a revenue of about $70 million each year. So, if one county gets all of Longboat Key, it will be a loss for the other.

There’s such a stark difference in what residents on either side of the county line pay in taxes every year because of how each county chooses to fund the services. Manatee uses ad valorem taxes, while Sarasota uses non-ad valorem special assessments.

While Sarasota residents pay more for the county debt service, school and hospital taxes, Manatee County has twice the millage rate that Sarasota does, which adds up.

For example, for a home that costs $500,700 in Sarasota County, the resident would pay $764.24 more if it were in Manatee County. For a $1 million home in Manatee County, the homeowner pays about $1,526.33 more than its counterpart in Sarasota.

Bullock feels that one county fosters more effort into the island than the other, although he noted they have a good relationship with both.

“Sarasota County invests more in Longboat Key than Manatee County does,” Bullock said.

He pointed to a few examples, including Sarasota’s $2 million contribution to the Bayfront Park, which will be reopening Nov. 8. But Manatee County contributes to water and sewer services, he said.

Mayor Terry Gans echoed Bullock’s presentation.

“We have to first make a case for ourselves of what is the correct path to propose for the good of Longboat Key,” Gans said.

The change isn’t going to be immediate. It could take years to come to a final decision, Gans said. The town has to present their case to Manatee County and the legislative delegation, as the county boundary change – not unheard of – would take legislative action.

Sarasota County Commissioner Nancy Detert inquired whether the town would conduct a referendum to get input from the residents.

“It’s certainly … a compelling argument for your residents,” she said. “The compelling argument is a practical one.”

This story was originally published November 1, 2017 at 4:16 PM with the headline "Moving all of Longboat Key to Sarasota could save some residents on their taxes."