Manatee County approves return of $2.5 million to schools after tax dispute

The School District of Manatee County will receive all of the funds collected from a voter-approved property tax after county commissioners agreed Tuesday to reimburse local schools more than $2.5 million that had been withheld.

The decision came after a long-simmering controversy over who should pay the cost of collecting the voter-approved tax. For years, county commissioners absorbed those administrative fees. But beginning in 2024, some tax collectors, including Manatee County, argued school districts should pay instead — a change that diverted millions of dollars from public education.

Manatee County Commission Chairman Tal Siddique took up the issue after Suncoast Searchlight’s reporting that highlighted the dispute.

“It’s a philosophical question at that point,” Siddique said during the meeting on Tuesday. “What we do with the money, I think it’s better spent providing it back to the schools.”

Manatee County Commission Chairman Tal Siddique discusses reimbursing the School District of Manatee County during Tuesday’s commission meeting. Commissioners unanimously approved returning more than $2.5 million in previously withheld property tax collection fees. | Screenshot from Manatee County livestream

Manatee Superintendent Laurie Breslin celebrated the commission’s decision after the vote.

“This funding means a great deal to our community and will help us continue the strong progress and positive momentum we achieved last year while creating even greater opportunities for student success in the future,” Breslin said in a statement to Suncoast Searchlight.

READ MORE: Commission chair seeks to return $2.5 million to Manatee County Schools

The disagreement over who should pay the collection costs sparked a lawsuit in Sarasota County, legal posturing from Broward County Schools and legislation sponsored by State Rep. James Buchanan, R-Sarasota, who’s now running to replace Republican Sen. Joe Gruters. The legislation, which is now law, clarified that tax collectors can waive the fee altogether or charge county governments — but not school districts.

While Buchanan’s legislation settles the issue going forward, it does not address money that’s already been withheld. That left Manatee County schools without more than $2.5 million retained by Tax Collector Ken Burton Jr.’s office.

On a unanimous vote, the commission decided to reimburse the local school district all of the money after only brief discussion.

Commissioners Bob McCann and George Kruse both questioned the source of the funds and whether it was the county’s place to pick up the tab.

McCann pointed to costs the county already covers for the school district, like crossing guards and school security officers, and questioned whether the county should take on another education-related expense.

“If they’re going to have this windfall of fees, why?” McCann said. “Why are we paying for that type of stuff?”

Siddique defended returning the funds to the school district, noting the county already has interlocal agreements covering those other expenses. He also told McCann that “any commissioner can continue to bring those up for debate.”

He said if Amendment 3 — a November ballot measure that would expand Florida’s homestead exemption — passes, the county may be forced to revisit those agreements anyway. Many local officials fear the proposal could blow holes in their budgets.

Siddique said the reimbursement would come from excess revenue returned by the tax collector’s office to the county’s general fund after all the costs associated with tax collection have been paid. 

Despite some questions, both Kruse and McCann joined the other commissioners voting in favor of the proposal.

At the meeting, School Board Chair Cindy Spray highlighted recent successes like a 90% graduation rate last year, while attributing the positive outcomes to voters’ decision to prioritize education funding.

Spray thanked the commissioners for addressing the issue and returning the funds.

“We are gracious that you are bringing this before the entire board,” she said, “so that we can get that money back into the classrooms and to our teachers.” 

Derek Gilliam is a watchdog/investigative reporter for Suncoast Searchlight. Email him at derek@suncoastsearchlight.org.