Was the Dallas/Fort Worth International Airport Facility Improvement Corporation exempt from Texas sales tax as a political subdivision?

Plain-English summary

The Dallas/Fort Worth International Airport Facility Improvement Corporation submitted its articles of incorporation in support of a Texas sales-tax exemption request.

The Comptroller concluded from those articles that the corporation was not a political subdivision and denied the exemption. The letter said the current statute contained no other provision exempting the corporation without a federal exemption.

The corporation could submit a new request if it obtained federal income-tax exemption under I.R.C. § 501(c)(3), (4), (8), (10), or (19).

What this means for you

A corporation connected with a public airport was not automatically treated as an exempt political subdivision. Its own legal status and qualifying exemption authority controlled.

Common questions

Was FIC a political subdivision? No, according to the Comptroller's review of its articles.

Was the sales-tax exemption granted? No.

Could FIC reapply? Yes, if it later obtained one of the federal exemptions identified in the letter.

Citations and references

• I.R.C. § 501(c)(3), (4), (8), (10), and (19) — federal classifications identified as possible grounds for a renewed exemption request

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9107896L

Original ruling text

July 18, 1991

Dear **:
Thank you for providing me with a copy of the articles
of incorporation for Dallas/Fort Worth International Airport Facility
Improvement Corporation (FIC).

I have reviewed the articles of incorporation; because
the (FIC) is clearly not a political subdivision, the request for exemption
from sales tax is denied.

Under the current statute, there are no provisions to
exempt the corporation, without a federal exemption.

The corporation may resubmit a request for exemption
if it applies for and receives an exemption from federal income tax under
Internal Revenue Code Section 501(c) (3), (c) (4), (c) (8), (c) (10), or (c)
(19).

This opinion is based on the facts presented. If
there are additional or different facts, the opinion may change.
If you have any questions or need more information,
you may call me toll free at 1-800-531-5441, extension 5-0330. The regular
number is 512/463-4600, or write Tax Administration Division.

Sincerely,
Betty U. Peterson
Tax Administration Division