In short: It can, at least on the record in this case. The Florida Governmental Utility Authority, an entity created by several counties under the Interlocal Cooperation Act, claimed its water systems in Putnam County, which was not a member, were immune from or exempt from property tax. The trial court ruled for the Putnam County Property Appraiser, and the Fifth District affirmed without an opinion on December 26, 2017.
The Facts
The Florida Governmental Utility Authority (FGUA) was created by interlocal agreement under section 163.01, the Florida Interlocal Cooperation Act. Its members are counties. In March 2013 it bought parts of the Aqua Utility water and wastewater system in Putnam County, one in the unincorporated county and one in the Town of Pomona Park. Putnam County is not a member of FGUA; according to the argument, both Putnam County and Pomona Park passed resolutions approving the sale while declining to join.
FGUA bought the systems with revenue bonds, and private companies operate them under management and operating agreements. In July 2014 the Putnam County Property Appraiser notified FGUA that he did not recognize any immunity or exemption. FGUA sued over the 2013, 2014 and 2015 tax years. The trial court entered summary judgment for the property appraiser. According to the argument, it treated the 2013 claim as untimely and dismissed the 2015 claim because FGUA had not applied for an exemption that year.
The Fifth District heard argument in late 2017. The points below are what the lawyers argued, not findings by the court.
- FGUA argued it shares the constitutional tax immunity of its member counties because counties working together under section 163.01 do not lose the immunity each of them has. It distinguished the Florida Supreme Court’s Canaveral Port Authority decision, which held a special district created by the Legislature was not immune.
- In the alternative, FGUA argued section 163.01 itself declares such entities serve a public purpose and are exempt from taxes, that the statute authorizes it to serve non-member counties, and that the operating agreements are service contracts, not leases to private parties.
- FGUA also argued it did not need to file a new exemption application for 2015 while the suit was pending, because the amended complaint related back.
- The property appraiser argued that counties cannot confer an immunity the Legislature itself cannot create, that buying water systems in a non-member county serves no public purpose for the member counties’ citizens, and that Article VII, section 10 of the Florida Constitution makes revenue-bond projects operated by private parties under contract taxable.
- He also argued that without immunity the 2013 challenge was filed too late, and that failing to apply for the 2015 exemption waived it.
The Decision
The Fifth District affirmed on December 26, 2017 in a per curiam affirmance (PCA) with no written opinion. On January 29, 2018 it denied FGUA’s motion for rehearing and for a written opinion, and the mandate issued February 19, 2018.
A PCA decides only this case. It does not say which of the property appraiser’s grounds the court accepted: no immunity, no public purpose, private operation of a revenue-bond project, or the timing and application problems. The judgment for the property appraiser stands.
The Law
Immunity and exemption are different. Immunity belongs to the state and, under the Florida Constitution, to counties; their property is not taxed at all. Other governmental entities, such as cities and special districts, are taxable unless a statute grants an exemption. In Canaveral Port Authority, the Florida Supreme Court said immunity is narrowly confined and that the Legislature cannot extend it to an independent special district by labeling it a political subdivision.
Exemptions for government-owned property are governed by section 196.199. Property of a governmental entity used for a governmental, municipal or public purpose, a term defined in section 196.012, can be exempt, but property leased to or used by a private, for-profit party is often taxable. The property appraiser relied on that rule and on Article VII, section 10 of the Florida Constitution, which makes projects financed with revenue bonds taxable when they are occupied or operated by a private party under a contract or lease.
Deadlines matter in tax cases. Under section 196.011, failing to file a required exemption application for a year waives the exemption for that year. Under section 194.171, a suit contesting a tax assessment generally must be filed within 60 days after the tax roll is certified for collection.
Lessons
- An entity created by local governments does not automatically inherit their immunity from property tax. Expect the property appraiser to demand a statutory exemption and proof of a public purpose.
- Who operates government property matters. Management or operating agreements with for-profit companies can put an exemption at risk, especially for revenue-bond projects.
- File the exemption application every year it is required, even while litigation over an earlier year is pending.
- Calendar the 60-day deadline to sue after the tax roll is certified. A late filing can lose the year regardless of the merits.
Watch the Oral Argument
This is the recording of the Fifth District oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling, and this decision was a per curiam affirmance without an opinion.
📑 Government Water Utility Claims Property Tax Immunity — Does It Qualify? | FGUA v. Parker 17-93
Go Deeper
- Homestead Tax Lien Already Paid: Is the Challenge Moot? (Charney v. Sarasota Appraiser)
- Does Florida's 3-Year Portability Window Apply to an Earlier Move? (Frehling v. Garcia)
- Florida Homestead Exemption and the November 2026 Property Tax Amendment
Frequently Asked Questions
Do government-owned utilities pay property taxes in Florida?
It depends on who owns the property and how it is used. Counties are immune, but other governmental entities generally need a statutory exemption under section 196.199, and private operation can make the property taxable. In FGUA v. Parker, the utility authority lost its challenge for its Putnam County systems.
Is a joint authority formed by counties immune from property tax?
The Florida Governmental Utility Authority argued it shared its member counties’ immunity. The trial court ruled against it and the Fifth District affirmed without an opinion, so the case does not announce a rule, but it shows the argument can fail.
Do I have to reapply for a property tax exemption while I am suing over it?
Assume so. Under section 196.011, failing to apply for a required exemption waives it for that year. According to the argument, FGUA’s 2015 claim was dismissed because it did not apply, and the affirmance left that ruling in place.
How long do I have to challenge a property tax assessment in Florida?
Generally 60 days after the tax roll is certified for collection, under section 194.171. Missing the deadline can bar the challenge for that year, which is why FGUA’s 2013 claim depended on its immunity argument.
Talk to a Florida real estate litigation lawyer
Weidner Law, P.A. handles Florida real estate disputes, title problems and appeals from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
