Tampa Bay Garden Apartments v. Gay

• Decision Date: 11 December 1951
• Citation: 55 So.2d 739
• Parties: TAMPA BAY GARDEN APARTMENTS, Inc. v. GAY.
• Court: Florida Supreme Court

Page 739

55 So.2d 739

TAMPA BAY GARDEN APARTMENTS, Inc. v. GAY.

Supreme Court of Florida, Special Division B.

Dec. 11, 1951.

Robert M. Ervin (of Ellis, Ervin & Wakeman), Tallahassee, for appellant.

Lewis H. Tribble, Tallahassee, for appellee.

TERRELL, Justice.

Appellant a Florida corporation made a lease agreement with the United States by which the appellant as lessee of the latter was authorized to erect, maintain and operate a housing project of approximately 550 units within the bounds of MacDill Air Force Base near Tampa. The lease was for the period of 75 years subject to earlier termination by the United States on certain conditions not necessary to discuss at this time. A deed conveying the lands to the United States, tax free, was executed by the State March 29, 1950. February 8, 1951, appellee as comptroller requested appellant to file in his office a certificate of registration as provided by Section 18, Chapter 26319, and to remit 3 per cent sales tax on housing unit rentals as provided by Section 3, Chapter 26319, General Acts of 1949. Sections 212.18 and 212.03, Florida Statutes 1949, F.S.A.

In response to this request, appellant advised appellee that it was not required by law to file the certificate of registration and pay three per cent sales tax on housing unit rentals as required by the appellee. A rehearing on the point was requested and denied. March 31, 1951, appellant filed its Bill of Complaint in the Circuit Court of Leon County for declaratory decree and injunctive relief. On final hearing the court dismissed the bill of complaint and ordered the complainant to secure a certificate of registration and pay the sales tax and penalties as required by law. This appeal is from that decree.

The point for determination is whether or not appellant is required by Sections 3 and 18, Chapter 26319, Acts of 1949, to secure a certification of registration, collect three per cent sales tax from the occupants of the housing units in question and remit same to the comptroller, together with interest and penalties thereon.

The purpose of appellant's bill of complaint was to secure a construction of Sections 3 and 18, Chapter 26319, Acts of 1949, and by such interpretation an answer to this question. Appellant contends however, that the question requires a negative answer because the deed conveying the leased lands by the State to the Federal Government and Article 1, Section 8, Clause 17 of the Federal Constitution immunizes it from regulation or any form of taxation by the State of Florida. Surplus Trading Company v. Cook, 281 U.S. 647, 50 S.Ct. 455, 74 L.Ed. 1091; Standard Oil Company of California v. California, 291 U.S. 242, 54 S.Ct. 381, 78 L.Ed. 775 and Johnson v. Yellow Cab Transit Company, 321 U.S. 383, 64 S.Ct. 622, 88 L.Ed. 814, are relied on to support this contention.

Appellee admits that the Federal Government acquired a limited jurisdiction over the lands on which the housing project is constructed by its deed, but denies that such jurisdiction relieves appellant of complying with Sections 3 and 18, Chapter 26319. Appellee contends that by the very terms of the lease agreement appellant agreed to pay the taxes in question, that the Federal Law does not relieve from such payment but affirmatively requires the sales tax to be paid. Gay v. Jemison, Fla., 52 So.2d 137 is relied on to support this contention.

Clause 17, Section 8 of Article 1 of the Federal Constitution as effectuated by act of Congrees, authorizes the Federal Government to exercise exclusive legislation over any district acquired from the State for the erection and maintenance of 'Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings', or any of them....