Florida Sales Tax Exemption on Utilities for HOAs

Compile all FPL account numbers (not meter numbers) for common areas only. Do not include any mixed residential/private usage.

• Visit the FPL Website
• Scroll down to “Select your exemption type to continue” and select “Condos & Homeowners Associations”
• Fill out the Account Name, Federal ID Number, Bill Account Number, Service Address of the Utility (if applicable to something like a clubhouse), name of contact/responsible person (preferably that of a board member of the HOA), title, telephone number, and email. The comments section can be left blank.

Note that a Florida Form DR-14 Consumer’s Certificate of Exemption is not required; however, HOAs are not automatically exempt. The exemption is based on use and must be substantiated.

Once the above information is completed, the next step is to agree to the terms and conditions by selecting the checkbox at the bottom of the form, signing as indicated, and selecting “Submit”.

Once the application is complete, FPL will do the following:

• Review account usage
• Confirm eligibility
• Potentially request clarification on clubhouse usage or mixed-use concerns. Clubhouse usage is fact-sensitive. To the extent the facility is used for non-residential or rental purposes, all or a portion of the associated utility usage may be taxable and require allocation.

Once FPL completes its review process, it will submit the information to the Florida Department of Revenue for a refund of up to the last 36 months of taxes paid. Additional months can be requested by the HOA submitting a written request to the Florida Department of Revenue. Refunds of previously paid tax may be available, generally subject to a three-year statute of limitations and approval by the Florida Department of Revenue. Note that if FPL does not offer your community an automatic submission to the Florida Department of Revenue for a refund of sales taxes paid, a request for refund can be done by filing an Assignment of Rights Form, Section 1 only and sending it to [email protected]. The form can be downloaded here.

Once the application is approved, sales tax is removed from future bills. In many cases, credits/refunds may be issued within the limited lookback period as discussed in Step 4.

Compile all Duke Energy account numbers (not meter numbers) for common areas only. No mixed residential/private usage is allowed.

Duke Energy does not have a standardized form in which to request tax-exempt status for HOA communities when compared to FPL.

• Navigate online to https://floridarevenue.com/Forms_library/current/dr26a.pdf
• Download/print a copy of the “Assignment of Rights to Refund Tax” Form
• Download the form, and either complete the form electronically or print and complete only Section 1 according to Duke Energy. Do not complete Sections 2 or 3.
• Once the form has been completed, email [email protected] a copy of the form.
• The subject of the email should be “HOA Tax Exempt Status – Assignment of Rights Form”
• In the body of the email, state the individual’s name and title on the HOA board of directors, contact information, the full HOA legal name, HOA Federal Identification number, and the account number(s) associated with the applicable HOA meters included in the application for tax-exempt status.
• Send the email to [email protected] once the components in 3(a) and 3(b) have been properly included.

Upon receipt of the application, Duke Energy will:

• Review account usage
• Confirm eligibility
• Potentially request clarification on clubhouse usage or mixed-use concerns. Clubhouse usage is fact-sensitive. To the extent the facility is used for non-residential or rental purposes, all or a portion of the associated utility usage may be taxable and require allocation.

Once Duke Energy completes its review process, it will submit the information to the Florida Department of Revenue for a refund of up to the last 36 months of taxes paid. Additional months can be requested by the HOA submitting a written request to the Florida Department of Revenue. Refunds of previously paid tax may be available, generally subject to a three-year statute of limitations and approval by the Florida Department of Revenue.

After approval of the application, the tax is removed prospectively. Refunds of previously paid tax may be available, generally subject to a three-year statute of limitations and approval by the Florida Department of Revenue.