Tampa airport authority wins tax battle

A battle over taxes at the Tampa International Airport has been decided in favor of the the Hillsborough County Aviation Authority at the Florida Second District Court of Appeal.

The case involved Florida's ad valorem tax exemption claimed by about 15 businesses at the Tampa airports overseen by the authority, according to airport spokespeople. The decision, handed down July 7, reverses a lower court win by Bob Henriquez, Hillsborough County property appraiser, where the case will be sent back in favor of the airports. 

Henriquez's office did not immediately return a phone message for comment on any potential appeals or a lingering question: if the annual taxes paid by the airport's 15 tenants in 2021 and 2022 will be refunded.

The Hillsborough County Aviation Authority oversees Tampa International Airport (TPA) and Hillsborough County's three general aviation airports. The taxes were placed upon the 15 tenants, and added up to millions of dollars in new and sudden taxes, according to a press release from the Tampa International Airport. The authority, which is its own taxing entity, maintains Florida law clearly exempts the aviation-related tenants from ad valorem property taxes.

The authority says it advocated for the tenants to protect the incentives needed to keep the airports running smoothly. The four-year legal battle was necessary for TPA's future, a top official says.

"The law has always been crystal-clear regarding businesses operating on property for airports that serve a government purpose," says Michael Stephens, Tampa airport's EVP and general counsel, in the press release. "We are pleased the appellate court interpreted the law the way it was intended, particularly as we embark on our next phase of growth at TPA."

The dispute began in 2019 when Henriquez placed the taxes upon fixed-based operators, airlines, cargo and medical transport services, fueling and maintenance services that the airport authority says "support the Tampa Bay region's aviation industry and promote economic growth."

The appellate court agreed the airport's tenants met the statutory requirements of tax exemption for fixed-based operators (FBOs) and other related businesses serving a legally defined government purpose.

"It is undisputed that many of the properties operate as (an) FBO," the court says. "These uses fall squarely within the legislature's definition of 'governmental purpose' ... And the remaining properties are used for substantially equivalent activities such as fueling, repairing, and maintaining aircraft. Like FBOs, these aviation activities on airport property satisfy the plain language of the statutory definition of 'governmental purpose.'"

Deric Dymerski, owner and president of fixed-based operator Atlas Aviation and a longtime tenant, welcomed the ruling in a written statement.

"As a small business owner, along with others who have contributed to aviation growth in this region, I have always understood the Florida Legislature’s plain-language intent to help Florida thrive as a leader in creating jobs and opportunities in this sector," Dymerski says in a statement. "It's a shame we had to be involved in a costly and years-long legal battle to arrive at this conclusion."

But the legal fighting could continue, according to the authority. The appraiser could file a "Notice of Rehearing" with the Second District Court of Appeal or a "Notice of Appeal" with the Florida Supreme Court. The airport authority hopes the Friday decision ends the dispute.

"We hope that the appellate court’s decision will finally resolve this dispute so we can continue to move our region and state’s aviation economy forward," says Stephens.