Municipal client in Tampa has been getting charged sales tax by Tampa Electric (TECO) despite having government exemption certificate on file. Florida Statute 212.08 clearly exempts government entities. TECO claims the exemption only applies to "direct government use" and not contractor-operated facilities. Anyone encountered this interpretation before?
Florida government exemption - Tampa Electric billing error
I've seen this with several Florida utilities. They interpret "direct use" very narrowly. If a private contractor operates the facility even under government contract, some utilities treat it as taxable. Check the actual ownership and control structure.
Facility is government-owned but operated by private contractor under service agreement. TECO says that makes it taxable. Seems like an overly restrictive interpretation of the statute.
You might need to get Florida Department of Revenue involved. They've issued rulings that exemption follows ownership, not who operates the facility. File Form DR-5 application directly with state if utility won't honor exemption.
Filed DR-5 with state and got approval. TECO had to honor the exemption and issued refund for 18 months = $4,680. Good suggestion Kevin, thanks.
Florida utilities can be inconsistent on government exemptions when contractors are involved. When in doubt, get state revenue department clarification rather than arguing with utility billing departments.