Judges: K. N. AYERS
Agency: Department of Revenue
Latest Update: Sep. 15, 1981
Summary: Respondents do not have physical facility from which it offers charitable services. Accordingly, Respondent cannot be taxed.
79-0987.PDFSTATE OF FLORIDA
DIVISION OF ADMINISTRATIVE HEARINGS
CULMER PLACE TENANTS ASSOCIATION, INC., )
)
Petitioner, )
and )
)
ALLAPATTAH TENANT ASSOCIATION, INC., ) CASE NO. 79-0987
) CASE NO. 79-1160
Petitioner, )
)
vs. )
)
STATE OF FLORIDA, DEPARTMENT )
OF REVENUE, )
)
Respondent. )
)
RECOMMENDED ORDER
Pursuant to notice, a consolidated public hearing was held in the above- styled cases on 18 June 1981 at Miami, Florida.
APPEARANCES
For Petitioners: Stephen Maher, Esquire
17555 South Dixie Highway, Suite 101
Perrine, Florida 33157
For Respondent: G. P. Waldbart, Esquire
Assistant Attorney General Department of Legal Affairs The Capitol, LL04 Tallahassee, Florida 32301
By Petitions for Formal Proceedings dated 26 April 1979, and 23 May 1979, Culmer Place Tenants Association, Inc., Petitioner, and Allapattah Tenant Association, Inc., Petitioner, respectively, seek sales tax exempt status. As grounds therefor it is alleged that they are charitable organizations and eligible for such status. These cases were consolidated for hearing as requested by Respondent in its Request for Consolidation filed 1 August 1979. The hearing in these cases has been continued numerous times at the request of the parties.
At the hearing, which was initially scheduled to commence 17 June 1981, Petitioners were present with their witnesses; but, due to a mix-up, Respondent was not represented. It was then agreed to conduct the hearing the following day and, if Petitioners' witnesses could not return 18 June, their testimony would be taken by deposition and submitted as a late-filed exhibit. On 18 June 1981, only one of Petitioners' witnesses appeared to testify, and five exhibits were admitted into evidence. The parties subsequently deposed Sharon Williams
and Gussie Berriott, whose testimony has been received on the tapes on which recorded. Respondent called one witness.
Proposed findings submitted by the parties and not included below were not supported by competent evidence or were deemed immaterial to the results reached.
FINDINGS OF FACT
Culmer Place Tenants Association and Allapattah Tenant Association are not-for-profit corporations chartered by the State of Florida (Exhibits 1 and 2). Allapattah has received IRS tax-exempt status as a publicly supported corporation. Culmer Place has applied for such status but has not as yet received the IRS designation.
Both Culmer Place and Allapattah are tenant associations at Housing and Urban Development (HUD) projects in Miami, Florida. These HUD projects are low- income residences sponsored and managed by HUD.
The principal source of funds for each Petitioner is HUD. The Associations submit a budget to HUD and receive funds semiannually. Culmer Place received $453 from HUD in 1980 and Allapattah received a slightly less amount.
The Associations sponsor activities in their projects principally oriented towards children. These projects, which have been presented by both Petitioners, are the Easter project, family picnic on July 4, Christmas project, community movies, and trips to the circus or other attractions. In addition, one or both Associations have sponsored dances and held rummage sales. Allapattah is currently proposing the establishment of a softball team if funds can be obtained.
The Easter project consists of purchasing candy and eggs, getting volunteers to dye the eggs and putting these treats in bags which are given to the children who participate. At Culmer they have an Easter egg hunt but lack of space for hiding the eggs requires the bag approach at Allapattah.
The Christmas project is similar to the Easter project in that the Petitioners use the money provided by HUD to purchase candy, fruits and stockings which are taken around and given to the children who live in the project.
At the family picnic on July 4, barbeque is provided, as is other food and drinks. It appears that the Associations primarily provide "refreshments" at the projects they sponsor. No picnic was held in 1981 because funds were not available.
Other activities sponsored by the Associations include cleanup campaigns at which the young people are assembled to pick up trash and generally "clean up" around the projects. The Associations provide refreshments for the workers and HUD provides the funds to pay these youngsters for their cleanup work. The money for the refreshments is budgeted by the Associations and provided by HUD.
The summer lunch program is carried out at these projects with the food for the participants provided by the City, County, or HUD. The volunteers who supervise the serving of the food and activities that accompany this project are
members of the Associations and are paid by HUD for the three hours they are so engaged each day.
Movies are occasionally shown at the projects. The film is usually rented and the residents are invited by "flyer" to attend. Sometimes cartoons are obtained to show to the children.
Occasionally, free tickets to the circus or to some local attraction are obtained by the Associations who arrange the transportation for the children and supervisors to participate in these field trips.
These-projects and activities are provided free to the participants and participation is not limited to children, or others, who live in the Petitioner organizations. "Flyers" advertising these projects are prepared and delivered to the residents, placed on the bulletin boards at the housing project office, and some flyers are distributed outside the housing projects by putting them on poles, in stores (that permit) and in washerettes.
CONCLUSIONS OF LAW
The Division of Administrative Hearings has jurisdiction over the parties to, and the subject matter of, these proceedings.
The sole issue here is whether Petitioners qualify as charitable institutions and are thereby exempt from sales taxes pursuant to Section 212.08(7), Florida Statutes, which provides in pertinent part:
There shall be exempt from the tax imposed by this chapter articles of tangible personal property sold or leased direct to or by direct to or by churches or sold or
leased to nonprofit religious, nonprofit educa- tional, or nonprofit charitable institutions and state headquarters for veteran organiza- tions when used in carrying on their custom- ary nonprofit religious, nonprofit educa- tional, nonprofit charitable, or veteran organization activities, including church cemeteries.
(c)3. "Charitable institutions" shall mean only nonprofit corporations operating physical facilities in Florida at which are provided charitable services, a reasonable percentage of which shall be without cost to those unable to pay.
Rule 12A-1.01, Florida Administrative Code, tracks this statutory definition.
No evidence was presented that Petitioners operate physical facilities in Florida. To the contrary, they have no facility, only occasional access to the HUD offices or community meeting rooms in which to conduct some of their activities. While Petitioners' projects are nonprofit and charitable in nature, they operate no physical facilities from which charitable services are provided.
While the fundamental rule of construction is that tax laws are to be construed strongly in favor of the taxpayer and against the Government, and that
all ambiguities are to be resolved in favor of the taxpayer, Maas Brothers, Inc.
v. Dickinson, 195 So.2d 193 (Fla. 1967) , exemptions to taxing statutes are special favors granted by the Legislature and are to be strictly construed against the taxpayer. State ex rel. Szabo Food Services, Inc. v. Dickenson, 286 So.2d 529 (Fla. 1973); Wanda Marine Corporation v. State, Department of Revenue,
305 So.2d 65 (Fla. 1st DCA 1974). Accordingly, one claiming an exemption from taxes must strictly comply with the statute granting that exemption. That statute here is Section 212.08(7) (c)3, Florida Statutes, above quoted, which requires the taxpayer operate physical facilities at which charitable services are provided before it is exempt from the sales tax. Without such physical facilities, Petitioners cannot qualify for the sales tax exemption.
From the foregoing it is concluded that Culmer Place Tenants Association, Inc., and Allapattah Tenant Association, Inc., do not operate physical facilities at which charitable services are provided and, accordingly, do not qualify for the sales tax exemption. It is, therefore,
RECOMMENDED that the petitions of Culmer Place Tenants Association, Inc., and Allapattah Tenant Association, Inc., for sales tax exemptions be denied and these proceedings dismissed.
Entered this 27th of July 1981.
K. N. AYERS Hearing Officer
Division of Administrative Hearings The Oakland Building
2009 Apalachee Parkway
Tallahassee, Florida 32399-1550
(904) 488-9675
FILED with the Clerk of the Division of Administrative Hearings this 27th day of July 1981.
COPIES FURNISHED:
Stephen Maher, Esquire 17555 South Dixie Highway, Suite 101
Perrine, Florida 33157
G. P. Waldbart, Esquire Assistant Attorney General Department of Legal Affairs The capitol, LL04 Tallahassee, Florida 32301
Docket for Case No: 79-000987
Orders for Case No: 79-000987
| Issue Date |
Document |
Summary |
|
Sep. 08, 1981 |
Agency Final Order
|
|
|
Jul. 27, 1981 |
Recommended Order
|
Respondents do not have physical facility from which it offers charitable services. Accordingly, Respondent cannot be taxed.
|
