Under Florida's former commercial-rent tax, could a fixed-base operator exempt 42.5% of airport rent based on acreage used exclusively for aircraft taxiing?

Plain-English summary

For the historical tax periods, Florida concluded that the fixed-base operator could allocate 42.5% of its airport rent to property used exclusively for aircraft taxiing, subject to Department verification. The operator's calculation used qualifying acreage divided by total leased acreage.

The operator leased 42.8 acres from an airport authority. A submitted report identified approximately 18.2 acres, or 792,684 square feet, as exclusively used for taxiing. The lease charged monthly rent and additional percentage fees.

Using 18.2 divided by 42.8, the operator allocated 42.5% of the rent to qualifying taxiway property and claimed a $43,569.79 credit for March 2000 through October 2003. The ruling did not verify that dollar amount.

Exclusive-use acreage qualified under the former tax

Section 212.031(1)(a)7. exempted airport property used exclusively for aircraft landing or taxiing and certain airline loading, unloading, and fueling uses. Mixed airport space was allocated so that only the qualifying portion escaped the former commercial-rent tax.

The Department found the submitted taxiing-use portion eligible in principle, pending verification of the documents and calculation.

Refund rights followed the dealer-first process

The operator first had to request a refund from the airport authority that collected the tax. After refunding the operator, the authority could seek a Department refund or credit.

If the authority would not refund the tax, it could assign its rights so the operator could apply directly to the Department.

Current-law note

Florida TAA 25A-010 states that the general commercial-real-property rent tax was repealed effective October 1, 2025. No state sales tax or discretionary sales surtax applies to rent or license fees for rental or occupancy periods beginning on or after that date.

This older allocation ruling remains relevant to historical periods and refund analysis, subject to current deadlines and proof rules.

What this means for you

Fixed-base operators

Support any historical allocation with professional acreage or square-footage reports, lease provisions, invoices, checks, and exclusive-use evidence.

Airport authorities

Both fixed monthly rent and percentage fees were included in the taxpayer's historical allocation theory. Refund handling generally began with the authority as dealer.

Accountants and tax professionals

The 42.5% allocation and $43,569.79 credit were taxpayer calculations, not independently verified Department findings.

Common questions

Q: How was the 42.5% calculated?
A: Approximately 18.2 qualifying taxiing acres divided by 42.8 total leased acres.

Q: Did the Department approve the $43,569.79 refund?
A: No. Eligibility and the amount remained subject to verification.

Q: Who had to issue the refund first?
A: The airport authority, unless it assigned refund rights to the operator.

Q: Does the general commercial-rent tax apply to current periods?
A: Not for rental or occupancy periods beginning on or after October 1, 2025, according to TAA 25A-010.

Citations and references

• Fla. Stat. § 212.031(1)(a)7.; Fla. Admin. Code r. 12A-1.070(1)(a)6. — historical airport-property exemption
• Fla. Stat. § 215.26(1) — refunds of overpaid or erroneous tax
• Fla. Admin. Code r. 12A-1.014(4) — dealer refund and assignment of rights
• Section 37, Chapter 2025-208, Laws of Florida — repeal cited by Florida TAA 25A-010
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 04A-006
• Current-law source: TAA 25A-010

Original ruling text

SUMMARY

QUESTION: Does the airport property exemption described by
Rule 12A-1.070(1)(a)6., F.A.C., apply to the taxpayer, and,
if so, is the taxpayer entitled to a refund of sales tax?

ANSWER - Based on Facts Below: Based on the documentation
and facts provided by the taxpayer, the property at issue
would qualify for the exemption provided by section
212.031(1)(a)7., F.S., and described by Rule 12A1.070(1)(a)6., F.A.C., pending verification by the
Department of Revenue.

However, as noted above the taxpayer must secure a refund
from the dealer and not the Department of Revenue. If the
dealer is not willing to refund the tax to the purchaser,
the dealer may issue an assignment of rights to the
taxpayer in lieu of a refund. This would allow the
taxpayer to apply for a refund of the overpaid taxes
directly from the Department.

Feb 02, 2004

Subject: Technical Assistance Advisement 04A-006
Sales and Use Tax
Real Property Lease at Airport
Sections 212.031, 215.26, and
Rules 12A-1.014 and 12A-1.070, F.A.C.
XXX

Dear :

This response is in reply to your petition dated November 12,
2003, requesting the Department's issuance of a Technical
Assistance Advisement pursuant to s. 213.22, F.S., and Chapter
12-11, F.A.C., regarding the above referenced matter and
parties. An examination of your petition has established that
you have complied with the statutory and regulatory requirements

for issuance of a TAA. Therefore, the Department is hereby
granting your request for issuance of a TAA.

ISSUE

Does the airport property exemption described by Rule 12A1.070(1)(a)6., F.A.C., apply to the above-referenced taxpayer,
and, if so, is the taxpayer entitled to a refund of sales tax?

FACTS

The facts are as follows:

[The taxpayer is a] fixed based operator located at the
[Airport]. A large portion of [the taxpayer's] monthly
lease payments made to [Airport Authority is] for space
that is used exclusively for aircraft taxiing.

The taxpayer] leases 42.8 acres from [Airport Authority] as
denoted on the [Report by Firm]. Of the 42.8 Acres, [it
was] determined that approximately 18.2 of [the] Acres
[were] used exclusively for the purpose of aircraft
taxiing.

TAXPAYER POSITION

The Request provides in part:

Based on a ratio of 18.2 acres (792,684 sf) divided by 42.8
acres (1,864,368 sf), the percentage of rent payments made
for taxiways is 42.5%. As shown in Article VI of [the]
lease, [the taxpayer] makes monthly rent payments and
additional rent payments (Percentage Fees) to [the Airport
Authority]. The monthly rent payments multiplied by the
taxiway percentage equals the total amount of taxable
dollars eligible for the sales tax credit. Based on a
calculation made [by the taxpayer, the taxpayer] is due a
credit of $43,569.79 as shown on the attached spreadsheet.

DOCUMENTS PROVIDED BY TAXPAYER

1. Calculation of the taxpayer's sales tax refund due.

2. Letter from XXX denoting how much property is used
   exclusively for air taxiing.
3. Article VI of lease between the taxpayer and Airport
   Authority.
4. Rent invoices from Airport Authority and rent checks
   from the taxpayer for March 2000-October 2003.

REQUESTED ADVISEMENT

The request provides in part:

...[P]lease provide us with a technical ruling... addressed
to the [Airport Authority] indicating that the rule 12A1.070[(1)(a)6.a., F.A.C.,] applies to [the taxpayer], as
well as directing [Airport Authority] to supply [the
taxpayer] with the letter of assignment required to apply
for and collect our refund....

APPLICABLE STATUTES AND RULES

Section 212.031, F.S., provides in part:

(1)(a) It is declared to be the legislative intent that
every person is exercising a taxable privilege who engages
in the business of renting, leasing, letting, or granting a
license for the use of any real property unless such
property is:...

7. Property used at an airport exclusively for the purpose
   of aircraft landing or aircraft taxiing or property used by
   an airline for the purpose of loading or unloading
   passengers or property onto or from aircraft or for fueling
   aircraft.

Section 215.26, F.S., provides in part:

(1) The Chief Financial Officer may refund to the person
who paid same, or his or her heirs, personal
representatives, or assigns, any moneys paid into the State
Treasury which constitute:

(a) An overpayment of any tax, license, or account due;

(b) A payment where no tax, license, or account is due; and
(c) Any payment made into the State Treasury in error;

and if any such payment has been credited to an
appropriation, such appropriation shall at the time of
making any such refund, be charged therewith. There are
appropriated from the proper respective funds from time to
time such sums as may be necessary for such refunds.
(Emphasis Supplied.)

Rule 12A-1.014(4), F.A.C, provides:

(4) A taxpayer who has overpaid tax to a dealer, or who has
paid tax to a dealer when no tax is due, must secure a
refund of the tax from the dealer and not from the
Department of Revenue.

Rule 12A-1.070, F.A.C., provides in part:

(1)(a) Every person who rents or leases any real property
or who grants a license to use, occupy, or enter upon any
real property is exercising a taxable privilege unless such
real property is:

6.a. Property used at an airport exclusively for the
purpose of aircraft landing or aircraft taxiing or property
used by an airline for the purpose of loading or unloading
passengers or property onto or from aircraft or for fueling
aircraft. See subsection (3).

b. Property which is used by an airline for loading or
unloading passengers onto or from an aircraft is exempt.
This property includes: common walkways inside a terminal
building used by passengers for boarding or departing from
an aircraft, ticket counters, baggage claim areas, ramp and
apron areas, and departure lounges (the rooms which are
used by passengers as a sitting or gathering area

immediately before surrendering their tickets to board the
aircraft). Departure lounges commonly known as VIP lounges,
or airport clubs which are affiliated with an airline or a
club which requires a membership or charge or for which
membership or usage is determined by ticket status are not
included as property exempt from tax. The lease or license
to use passenger loading bridges (jetways) and baggage
conveyor systems comes under this exemption, provided that
the jetways and baggage conveyor systems are deemed real
property.

(I) In order for the jetways and baggage conveyors to be
deemed real property, the owner of these items must also be
the owner of the land to which they are attached, and must
have had the intention that such property become a
permanent accession to the realty from the moment of
installation. The items shall not be considered real
property if the owner, when the owner is not the airport,
retains title to the items after the purchase/installation
indebtedness has been paid in full.

(II) Any operator of an airport, such as an airport
authority, which is the lessee of the land on which the
airport has its situs is, for the purpose of this subsubparagraph, deemed the owner of such land.

c. Real property used by an airline for purposes of loading
or unloading passengers or property onto or from an
aircraft which is exempt from tax includes: office areas
used to process tickets, baggage processing areas,
operations areas used for the purpose of the operational
control of an airline's aircraft, and air cargo areas.

(I) If any portion of the above property is used for any
other purpose, it is taxed on a pro-rata basis, which shall
be determined by the square footage of the portion of the
areas in the airport that are used by an airline
exclusively for the purpose of loading or unloading
passengers or property onto or from aircraft (which areas
shall be the numerator) compared to the total square
footage of such areas used by the airline (which areas

shall be the denominator).

(II) Example: An airline leases a total of 3,000 square
feet from an airport authority. The airline uses the space
as follows: 1,000 square feet are used to process tickets
and check in the passengers' luggage; 1,000 square feet are
used for the passengers' departure lounge; and 1,000 square
feet are used for the management office and the employees'
lounge. The 1,000 square feet used to process tickets and
check in the passengers' luggage is exempt; the 1,000
square feet used as the passengers' departure lounge is
also exempt; and the 1,000 square feet used as the
management office and employees' lounge is taxable.
Therefore, a total of 2,000 square feet is exempt because
that portion of the total space leased by the airline is
used exclusively for the purposes of loading or unloading
passengers or property onto or from an aircraft. However,
the total amount used as office space and the employees'
lounge (i.e., 1,000 square feet) is taxable, because that
portion of the space leased by the airline is not used
exclusively for the purposes of loading or unloading
passengers or property onto or from an aircraft....

DISCUSSION

Pursuant to section 212.031(1)(a)7., F.S., "[p]roperty used at
an airport exclusively for the purpose of aircraft landing or
aircraft taxiing or property used by an airline for the purpose
of loading or unloading passengers or property onto or from
aircraft or for fueling aircraft" is exempt from the tax imposed
by that section. A taxpayer would be eligible for the exemption
provided in section 212.03 1(1)(a)7., F.S., to the extent that
the property is being used exclusively for the statutory
purpose. Rule 12A-1.071(1)(a)6.c.(I), F.A.C., provides that
"[i]f any portion of the above property is used for any other
purpose, it is taxed on a pro-rata basis, which shall be
determined by the square footage of the portion of the areas in
the airport that are used by an airline exclusively for the
purpose of loading or unloading passengers or property onto or
from aircraft (which areas shall be the numerator) compared to
the total square footage of such areas used by the airline

(which areas shall be the denominator)."

In regard to an assignment of rights for a refund, please note
that Rule 12A-1.014(4), F.A.C., provides that a taxpayer who has
paid tax to a dealer when no tax is due, must secure a refund
from the dealer. Once the dealer has refunded the tax to the
purchaser, the dealer may apply to the Department for a refund
or take a credit on the dealer's next tax return. Section
215.26(1), F.S., requires the Department to refund taxes paid in
error to the person who has remitted the tax to the state or the
person's assigns. If the dealer is not willing to refund the
tax to the purchaser, the dealer may issue an assignment of
rights to his/her customer in lieu of a refund. This allows the
customer (purchaser) to apply for a refund of the overpaid taxes
directly from the Department.

RESPONSE

Based on the documentation and facts provided by the taxpayer,
the property at issue would qualify for the exemption provided
by section 212.031(1)(a)7., F.S., and described by Rule 12A1.070(1)(a)6., F.A.C., pending verification by the Department of
Revenue.

However, as noted above the taxpayer must secure a refund from
the dealer and not the Department of Revenue. If the dealer is
not willing to refund the tax to the purchaser, the dealer may
issue an assignment of rights to the taxpayer in lieu of a
refund. This would allow the taxpayer to apply for a refund of
the overpaid taxes directly from the Department.

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 advise is based, may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Confidential information must be
deleted before public disclosure. In an effort to protect
confidentiality, we request you provide the undersigned with an
edited copy of your request for Technical Assistance Advisement,
the backup material and this response, deleting names, addresses
and any other details which might lead to identification of the
taxpayer. Your response should be received by the Department
within 15 days of the date of this letter.

Sincerely,

Kelley A. Cramer
Attorney
Technical Assistance and Dispute Resolution
(850) 922-4835

KC/
Ctrl# 57814
Enclosure