314
BIENNIAL REPORT OF THE ATTORNEY GENERAL
October 21, 1943.-043-279.
FEDERAL GOVERNMENT VEHICLES PRIVATELY OPERATED
QUESTION: Are motor vehicles owned by the Federal Government
and leased to governmental agencies but which are operated on the public
highways of the State by a Florida corporation, exempt from state motor
vehicle license taxes inasmuch as these agencies are corporate agencies '
of the Federal Government, created by the Reconstruction Finance Cor­
poration?'
To Honorable Henry J. Driggers, ];[otor Vehicle Oommissioner:
i have examined a copy of the agency agreement between a Defense
Supplies Corporation and a Florida Pipeline Company, to which agreement
another pipeline company, a Delaware corporation, is also a party. The
two companies last mentioned are private corporations. It is stated in the
agency agreement that the Delaware Company is the parent company
of the Florida Pipeline Company. It is also well known that the Delaware'
Company, which is closely affiliated with two oil corporations, operates
its own pipeline system from a town in North Florida into the State of
Georgia.
The agency agreement provides that for the duration of the war the
two private corporations will complete, manage, operate and maintain the
common carrier petroleum pipeline system of the Defense Plant Corpo­
ration which it has leased to the Defense Supplies Corporation. The
system extends from Carrabelle across the State to Jacksonville, Florida.
Under the arrangement the motor vehicles of the Defense Plant Cor­
poration leased to the Defense Supplies Corporation are turned over to
the Florida Pipeline Company to operate and use in connection with the
performance of its part of the agency agreement in completing, managing
and operating the system.
In the agency agreement it is provided that the Florida Pipeline
Company will pay taxes on its own account but it will not pay taxes on the
account of the Defense Supplies Corporation unless the same are approved,
by the latter, since the Defense Supplies Corporation is an agency of the
Federal Government and exempt from general taxation.
It is true that the Defense Plant Corporation and the Defense
Supplies Corporation are exempt from certain taxes, (see Section 610,
Title 15, Commerce and Trade, U. S. C. A.) and it is conceded that the
motor vehicles of this government corporations ordinarily are exempt
from State motor vehicle license taxes. Moreover, Section 320.10, Florida
Statutes, 1941, provides that motor vehicles owned and operated by the
Federal Government shall not be required to pay motor vehicle license
taxes.
In this instance, two private corporations are' engaged by a govern­
ment corporation under said agency agreement to take over for the
duration of the war the management, operation and maintenance of a
common carrier pipeline system, to prescribe tariff rates, select manage­
ment personnel and employees, fix salaries and operating expenses sub­
ject only to the supervisory regulation of the government corporation. It
is true that the agency agreement provides that the two private concerns
shall operate the pipeline system without fees, profit, or other remuner­
ation, yet it is provided that the government corporation will fully reim­
burse the private corporations for all salaries. costs and expenses incurred
in the management, operation, and maintenance of the common carrier
pipeline system. Under the agency agreement the private corporations
will operate and use these motor vehicles just as if they had legal title
to them in carrying out their engagements under the contract. For all
practical purposes the government has turned the management and
operation of the system over to private management for the duration of
BIENNIAL war, and if not
, ficial to the private
In such a situa
should, by reason 0
state Government, :
account motor vehic
the government corl
private corporations
corpora te businesses
,tribution made by 1
" ernment.
'The Federal Go
statutory exemption
61 C. J. 404.
The fact that tl
,ment corporation w
. riot affect the situati
"But when 1
for gain, the imr.
... property the
beneficial owners:
For general sta
of private contractOl
R. 1163, 97 A. L. R.
In ply opinion ~
proper license plate/:
they are used and (
November 6, 1943.­
NONRESIDEN
QUESTION: A
when they accept gf
or occupation in thi
employers or others
To H ono1'able Henry.
Section 320.38, ]
"In every ca~
engage in any tra
such nonresident
this State if sucb
highways of the
You will note t
Such nonresidents b:
employers or others
.
It is, therefore,
In trades, professio]
State motor vehicl
. for their work or s
this state.
BIENNIAL REPORT OF THE ATTORNEY GENERAL
ERAL
315 and if not for private gain, certainly for considerations bene­
'the private corporations and their affiliates.
~ch a situation, it is my opinion that the private corporations
by reason of the protection and benefits they receive from the
including the use of its highways, pay on their own
license taxes on the motor vehicles turned over by
IVeJrnlltlerlt (>',...,.T" ...." "'t·j"n to them for operation and use, just as other
,.."y,",,·r<>1".'''''''(.l operating motor vehicles in the performance of their
OU:51n.e~)es are required to pay such taxes as a part of the con­
made by private taxpayers to defray the costs of state Govv<:all"JLC
Federal Government cannot by an agency contract transfer its
exemption from State taxation to private corporations. See
J. 404.
of the war the
.d maintain the
e Plant Corpo­
·poration. The
:mville, Florida.
nse Plant Cor~
turned over to
ection with the
~ting, managing
'lorida Pipeline
lay taxes on the
J.e are approved"
1 agency of the
.d the Defense
ee Section 610,
lceded that the
ily are exempt
. 320.10, Florida
lPerated by the
vehicle license
d by a govern­
e over for the
Lintenance of a
select manage­
~ expenses sub­
corporation. It
)rivate concerns
other remuner­
will fully reim­
:penses incurred
common caTrier
Lte corporations
. had legal title
:mtract. For all
magement and
the duration of
fact that the titles to the motor vehicles remain in the governCOl:'J}Otra·tion while they are used by the private corporations does
the situation. In 61 C. J. page 361, it is stated:
"But when federal property is placed in a private enterprise
gain, the immunity has no application. So the State may tax
property the legal title to which is in the United states but the
'.bene1]ci:al ownership is in another."
For general statements concerning. the liability for state taxation
private contractors and agents of the Federal Government see 18 A. L.
1163, 97 A. L. R. 1257 and 114 A. L. R. 347.
. In.PlY opinion you should require the private corporations to secure
license plates for these motor vehicles during the period in which
are used and operated by such corporations.
':",,'~""~~'
"'November 6, 1943.-043-302.
NONRESIDENTS EMPLOYED IN THE STATE-LIABILITY
.
QUESTION: Are nonresidents liable for motor vehicle license taxes
. When they accept gainful employment, or engage in any trade, profession
. or occupation in this state but receive compensation for their work from
employers or others residing outside the State?
To Honorable Henry J. Drigger.~, ],[otor Vehicle Commissioner:
Section 320.38, Florida Statutes, 1941, provides:
"In every case where a nonresident shall accept employment or
engage in any trade, profession or occupation in the State of Florida,
such nonresident shall be required to register his motor vehicles in
this State if such motor vehicles are proposed to be operated on the
highways of the State of Florida."
You will note that this section does not provide any exemption for
SUch nonresidents based on whether or not compensation is received from
employers or others residing in the State or outside of the State.
. It is, therefore, my opinion that nonresidents employed or engaged
1Il trades, professions, or ocupations in this state are not exempt from
State motor vehicle license taxes because they receive compensation
for their work or services from employers or others residing outside of
this state.