On October 1, 2025, the yearly lease fee went up for every residential leaseholder on Pensacola Beach. The Santa Rosa Island Authority changed one percentage in a board policy. Since 2015, SRIA had collected 50% of the lease fees written into its leases. Under the revised Lease Fee Reduction policy, it now collects 75%.
The change shows what makes buying here different. Almost every private property on the island sits on land that Escambia County leases out and SRIA manages. A beach house comes with a lease contract. Leases are not all alike.
The October 2025 fee change and the fire fee that ended with it
In 2015, Escambia County took over the beach's Public Works and Public Safety departments, and SRIA cut what it collected to half of each lease fee. In June 2025, the Pensacola News Journal reported that the SRIA board had voted to collect a larger share of lease fees and pay the county directly for fire service. That meant the county no longer needed to collect separate fire protection fees from beach leaseholders. The board adopted the revised policy on July 23, 2025.
The current SRIA Board Policy Manual sets out how the deal works:
| Before Oct. 1, 2025 | Since Oct. 1, 2025 | |
|---|---|---|
| Share of residential lease fee collected | 50% | 75% |
| Fire protection on Pensacola Beach | County fire assessment collected from beach leaseholders | SRIA reimburses Escambia County for Fire Station #13 at 901 Via de Luna Drive |
| Condition in the policy | County runs Public Works and Public Safety | Same, plus the county ends the fire assessment under Resolution R2003-79 |
SRIA's own leaseholder notice says the lease fee depends on the individual lease agreement.
The board revised the policy again on July 22, 2026, and the 75% rate stayed the same. According to the staff report in the July 2026 meeting packet, the 2024 rewrite of the policy manual had accidentally deleted a clause. The July 2026 revision restored a clause on late lease payments.
CPI clauses add a second variable
Some leases also allow a fee increase every five years tied to the consumer price index. SRIA's financial statements for the year ending September 30, 2025, show that the board approved a total increase of 7.7% for the 2021 to 2025 lease years. SRIA applied 1.7% in 2022 and 2% each year from 2023 through 2025. After that fiscal year closed, the board voted not to apply a CPI increase for 2026. The 2026 decision was a single vote.
A court case on Pensacola Beach lease taxes
In an October 11, 2017 opinion involving Beach Club Towers, Florida's First District Court of Appeal relied on earlier Florida Supreme Court precedent. The court found that the Beach Club unit owners' leases did not renew automatically. So the court ruled that the land was exempt from ad valorem tax and that the leasehold was taxable as intangible personal property.
In 2018 the Pensacola News Journal reported that the Florida Supreme Court declined Escambia County's request to review the ruling.
Renewal discussions at SRIA
Most residential leases on the island run 99 years, and many include an option to renew for another 99. SRIA approves routine renewals regularly. At the February 25, 2026 meeting, for example, the Development and Leasing Committee unanimously approved a 99-year renewal for a lot on Panferio Drive in Villa Primera.
SRIA has not finished setting the rules on renewals. Island Times reported that at its January 28, 2026 meeting, the board heard requests from leaseholders who wanted another renewal on leases that had only just been renewed. The motions to approve got no second. Board member Bruce Childers told the board, "The intent, as I read it, is for people to have 99 year leases, and only a 99 year lease," and staff was to gather input for a draft policy. On February 25, 2026, a proposed revision to the Residential Leases and Amendments policy came up and was dropped when no one made a motion. The policy manual dated July 22, 2026 still lists that policy as last revised in March 2024. The October 28, 2026 agenda lists individual renewal requests and no item on renewal policy. The question is still open.
Remaining years affect financing and how fast a sale closes
Renewals come up in a sale because of how lenders look at remaining lease years. In 2019, the Pensacola News Journal reported that lenders often required at least 30 years left on a lease to finance a purchase. The same report said SRIA reviews every lease at renewal, which could delay sales. It also noted that leases differ on whether they renew automatically or get renegotiated, and that condo master leases add another layer. That reporting is several years old.
After a sale closes, SRIA asks for a copy of the recorded assignment so it can update its leaseholder records. Its Administration and Leasing department asks leaseholders thinking about assigning or subleasing to contact the office.
Why outright ownership keeps stalling in Congress
In 2017, a House committee report noted that Escambia and Santa Rosa counties had both passed resolutions asking for federal authority to offer leaseholders an optional fee-simple title. None of the bills written to change that has become law:
- H.R. 2954 passed the House on February 6, 2014, and went no further after referral to the Senate.
- H.R. 1452 was introduced March 18, 2015, and was last placed on the House Union Calendar in December 2015.
- H.R. 2370, the Escambia County Land Conveyance Act, passed the House by voice vote on July 26, 2017, and was referred to the Senate the next day, where it stopped.
The leaseholder group Pensacola Beach Advocates posts a "2025 Fee Simple Draft" of a conveyance bill. It is an unnumbered draft with the committee referral left blank. Under its text, no leaseholder could be required to accept a fee interest in place of a leasehold.
FAQ
Is the 75% collection rate permanent? It is board policy. The board has revised this policy several times since 2015.
What did the SRIA board decide about CPI increases for 2026? SRIA's financial statements say the board voted not to apply a CPI increase for 2026.
This post is general information, not legal, tax or financial advice. Tax treatment, lender requirements and lease terms vary by property, so please confirm your own situation with an attorney, tax professional or lender.
If you are buying or selling on the island, Horizon Realty Group can help you get the lease file early, coordinate the details with SRIA and your lender, and keep the timeline on track, in English or Vietnamese. Contact Us to get started.
