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Consumer Credit Counseling Service of Florida Gulf Coast, Inc. v. State, Department of Revenue

Citations: 742 So. 2d 259; 1997 Fla. App. LEXIS 7558; 1997 WL 361836Docket: No. 96-03469

Court: District Court of Appeal of Florida; July 2, 1997; Florida; State Appellate Court

Narrative Opinion Summary

In a case involving the Consumer Credit Counseling Service (CCCS), the organization challenged a decision by the Florida Department of Revenue, which denied their application for a sales tax exemption under Section 212.08(7)(o) of the Florida Statutes. CCCS contended that its offerings of budget counseling, educational initiatives, debt management, and referral services constituted 'social welfare services' under the statute, which grants tax exemptions to nonprofit organizations providing such services. However, the Department determined that CCCS's services did not fit the statutory definition focusing on substantial benefits to disadvantaged communities. The court upheld this decision, emphasizing the principle of strict construction against the taxpayer in tax exemption cases and recognizing the agency's interpretation as authoritative unless clearly erroneous. The court also applied the principle of ejusdem generis, interpreting the term 'social welfare services' in alignment with specific examples provided in the statute. The ruling affirmed the Department's decision, with concurring opinions from Judges Blue and Altenbernd, who provided additional perspective on the interpretive issues involved.

Legal Issues Addressed

Interpretation of 'Social Welfare Services' under Florida Law

Application: By applying the principle of ejusdem generis, the court determined that CCCS's services do not align with the statutory definition of social welfare services aimed at substantial benefits to disadvantaged populations.

Reasoning: The court applied the principle of ejusdem generis, suggesting that the general term follows specific definitions and thus should align with services that ensure survival and save state resources.

Judicial Deference to Agency Interpretation

Application: The court deferred to the Department of Revenue's interpretation, as the term 'social welfare services' lacks a precise definition in Florida law, and the agency's interpretation was not clearly erroneous.

Reasoning: Lacking authority to overturn the Department's interpretation, the court affirmed the Department's decision.

Strict Construction of Tax Statutory Exemptions

Application: The court emphasized that tax exemptions must be strictly construed against the taxpayer, favoring the Department's interpretation unless clearly erroneous.

Reasoning: The court noted that exemptions in tax statutes are strictly construed against taxpayers, and the agency's interpretation of the statute is given considerable weight unless clearly erroneous.

Tax Exemptions for Charitable Institutions under Florida Statutes Section 212.08(7)(o)

Application: The court evaluated whether Consumer Credit Counseling Service (CCCS) qualifies for a sales tax exemption as a charitable institution offering social welfare services.

Reasoning: CCCS appeals a final order from the Department of Revenue denying its application for sales tax exemption under section 212.08(7)(o) of the Florida Statutes.