FL – Solar panels on federal air base taxable

A Florida taxpayer’s tangible personal property used in connection with a solar energy generating facility within the federal Air Force base was taxable because once leased, the property is no longer exempt under the Deed of Cession and applicable Florida statutes for private enterprises. In this case, the taxpayer subleased land on the federal Air Force base and constructed solar panels. The county property appraiser assessed tangible personal property tax on the solar panel array. The taxpayer argued that the solar energy generating facility was exempt because it was located within a federal enclave. However, as the property appraiser correctly argued that the federal enclave doctrine is much more nuanced, the trial court ruled in the property appraiser’s favor. The District Court of Appeal noted that although the federal government held paper title to the improvements under the lease, the full value of the building and improvements constituted the lessee’s interest in the property subject to state taxation. Therefore, once leased to a private enterprise the property was no longer exempt under the Deed of Cession and applicable Florida statutes. Accordingly, the taxpayer’s appeal was denied, and the solar panels on the land leased pursuant to the Military Leasing Act were taxable. Gulf Coast Solar Center I, LLC v. Busbee, District Court of Appeal of Florida, First District, No. 1D20-1439, July 19, 2021