Was a regional water supply authority formed by counties and cities exempt from Florida intangible personal property tax?

Plain-English summary

Florida found the regional water supply authority exempt from intangible tax if it satisfied the statutory ownership and membership requirements for an interlocal governmental entity.

Hillsborough, Pinellas, and Pasco Counties and the Cities of Tampa and St. Petersburg created the authority by interlocal agreement to develop regional water supplies and sell water wholesale to counties and municipalities.

Section 163.01(9)(c) treated a qualifying interlocal governmental entity like a Florida municipality or county for statutory privileges, immunities, and exemptions. Because section 199.183(1) expressly exempted municipalities from intangible taxation, the authority received the same exemption to the extent it met section 163.01(9)(c)'s ownership and membership criteria.

What this means for you

• The exemption was conditional on the authority satisfying the cited interlocal-entity requirements.
• The Department derived the result from municipal treatment, not merely from the authority's water-supply purpose.
• A different governmental entity should verify its own formation, ownership, and membership facts.

Common questions

Q: Was every regional authority automatically exempt? A: No. The ruling tied the exemption to the requirements of section 163.01(9)(c).

Q: Why did municipal treatment matter? A: Florida municipalities were expressly exempt from intangible tax under section 199.183(1).

Q: Can another authority rely on this TAA? A: Not automatically. The advisement binds the Department only on the facts and statutory conditions described.

Citations and references

• Fla. Stat. § 163.01(9)(c) — treatment of qualifying interlocal governmental entities
• Fla. Stat. § 199.183(1) — municipal intangible-tax exemption
• Fla. Stat. § 373.1962 — regional water supply authorities
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 96C2-074

Original ruling text

Aug 08, 1996

Re: Technical Assistance Advisement No. 96(C)2-074 Intangible Tax - Exempt Entity Sections 199.052 and 199.183(1), F.S. XXX (the "Authority")

Dear

Your letter requesting a Technical Assistance Advisement dated March 5, 1996, has been received by this office. The request deals with whether a regional water supply authority created under the provisions of s. 373.1962, F.S., is exempt from intangible taxation.

STATEMENT OF FACTS

The Authority is a regional water supply authority created under the provisions of s. 373.1962, F.S. The Authority was created pursuant to an "Interlocal Agreement" dated October 24, 1974, between Hillsborough County, Pinellas County, Pasco County and the Cities of Tampa and St. Petersburg. The Authority was created for the purpose of developing regional water supplies and supplying water at wholesale to counties and municipalities.

ISSUE

Based on the facts as stated above, you have requested a ruling on whether the authority is exempt from intangible taxation under the provisions of s. 199.183(1), F.S.

LAW AND DISCUSSION

Section 163.01(9)(c), F.S., provides that an interlocal governmental entity which meets the prescribed ownership and management criteria shall be treated in the same manner as a municipality or county of this state for purposes of any privileges and immunities from liability, and exemption from laws, which are afforded those entities under Florida law.

Florida municipalities are expressly exempt from intangible taxation pursuant to s. 199.183(1), F.S. The Authority would therefore also be exempt from the tax to the extent it meets statutorily prescribed ownership and membership requirements of s. 163.01(9)(c), F.S.

This response constitutes a Technical Assistance Advisement under section 213.22, F.S., which is binding on the Department only under the facts and circumstances described in the request for this advice as specified in section 213.22, F.S. Our response is predicated on those facts and the specific situation summarized above. You are advised that subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules upon which this advice is based may subject similar future transactions to a different treatment than expressed in this response.

You are further advised that this response and your request are public records under Chapter 119, F.S., which are subject to disclosure to the public under the conditions of section 213.22, F.S. Your name, address, and any other details which might lead to identification of the taxpayer must be deleted by the Department before disclosure. In an effort to protect the confidentiality of such information, we request you notify the undersigned in writing within 15 days of any deletions you wish made to the request or the response.

Sincerely,

George D. Turner
Senior Tax Specialist
Tax Policy & Dispute Resolution

GDT