Auditing a regional hospital in Jacksonville served by JEA. The hospital is a 501(c)(3) nonprofit but they're paying Florida sales tax on their entire electric bill — roughly $4,800/month in tax alone across 6 meters. Florida exempts nonprofit hospitals under Section 212.08(7)(o). Nobody ever filed the exemption certificate with JEA. This has been going on since the hospital opened 11 years ago. The 3-year lookback on refunds is going to be substantial.
Hospital paying sales tax in Florida — healthcare exemption exists but nobody filed it
I found the exact same thing at a medical center in Jacksonville last year. JEA processed the exemption quickly once the DR-14 form was filed. The refund took longer — about 10 weeks through the Florida Department of Revenue. For your client the 3-year refund on $4,800/month in tax is roughly $172,000. That's a career-making finding. Make sure you have copies of every bill showing the tax paid because the DOR will want documentation for the full lookback period.
Rob's math is correct and this is exactly the type of high-value finding that makes tax exemption review essential for every audit. Hospitals, universities, churches, government entities, and other exempt organizations frequently pay sales tax on utilities because the exemption requires proactive filing. The organization assumes it's handled automatically. The utility assumes the customer will file if they qualify. Nobody acts and the tax accrues for years. The lookback period varies by state — Florida allows 3 years, some states allow more. Always file for the maximum lookback.
Florida DOR processed the refund — $168,000 for 36 months. My contingency fee on this single finding was more than my total income from the previous year. The hospital CFO said nobody had ever questioned the tax line on their utility bills. He assumed it was a non-negotiable government charge. This is why we exist.