ST JOE Co Income Taxes Disclosure
12. Income Taxes
Income tax expense (benefit) consist of the following:
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
Current: |
| |
| |
| | |||
Federal | $ | 37,067 | $ | 21,515 | $ | 32,103 | |||
State |
| 8,963 |
| 5,239 |
| 4,584 | |||
Total |
| 46,030 |
| 26,754 |
| 36,687 | |||
Deferred: | |||||||||
Federal |
| (6,649) |
| (847) |
| (11,413) | |||
State |
| (150) |
| 45 |
| 735 | |||
Total |
| (6,799) |
| (802) |
| (10,678) | |||
Income tax expense | $ | 39,231 | $ | 25,952 | $ | 26,009 | |||
Total income tax expense (benefit) was allocated in the consolidated financial statements as follows:
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
Income tax expense | $ | 39,231 | $ | 25,952 | $ | 26,009 | |||
Income tax recorded in accumulated other comprehensive income |
| |
| |
| | |||
Income tax benefit |
| (280) |
| (144) |
| (199) | |||
Total income tax expense | $ | 38,951 | $ | 25,808 | $ | 25,810 | |||
Income tax expense (benefit) attributable to income from operations differed from the amount computed by applying the statutory federal income tax rate of 21% as of December 31, 2025, 2024 and 2023 to pre-tax income as a result of the following:
Year Ended December 31, | ||||||||||||||||||
| 2025 | | 2024 | | 2023 | |||||||||||||
U.S. federal statutory tax rate | $ | 32,574 | 21.0 | % | $ | 20,653 | 21.0 | % | $ | 21,781 | 21.0 | % | ||||||
State and local income taxes, net of federal income tax effect (a) |
| 6,775 | 4.4 | % |
| 4,497 | 4.6 | % |
| 4,223 | 4.1 | % | ||||||
Energy related tax credits | — | — | % | — | — | % | (450) | (0.4) | % | |||||||||
Changes in valuation allowance |
| — | — | % |
| (312) | (0.3) | % |
| 22 | — | % | ||||||
Nontaxable or nondeductible items | 170 | 0.1 | % | 580 | 0.6 | % | 230 | 0.2 | % | |||||||||
Other items |
| (288) | (0.2) | % |
| 534 | 0.5 | % |
| 203 | 0.2 | % | ||||||
Total income tax expense | $ | 39,231 | 25.3 | % | $ | 25,952 | 26.4 | % | $ | 26,009 | 25.1 | % | ||||||
| (a) | State taxes in Florida make up the majority of the tax effect in this category. |
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented below:
December 31, | December 31, | |||||
| 2025 | | 2024 | |||
Deferred tax assets: |
| |
| | ||
Net operating loss carryforwards | $ | 2,247 | $ | 2,094 | ||
Impairment losses |
| 21,823 |
| 22,388 | ||
Deferred revenue |
| 13,841 |
| 13,003 | ||
Capitalized costs | 4,285 | 4,014 | ||||
Reserves and accruals | 1,349 | 1,431 | ||||
Other |
| 1,660 |
| 2,033 | ||
Total gross deferred tax assets |
| 45,205 |
| 44,963 | ||
Deferred tax liabilities: |
|
| | |||
Investment in real estate and property and equipment basis differences |
| 25,619 |
| 31,104 | ||
Deferred gain on land sales and involuntary conversions |
| 35,322 |
| 35,875 | ||
Installment sales |
| 45,597 |
| 45,597 | ||
Other |
| 2,470 |
| 3,270 | ||
Total gross deferred tax liabilities |
| 109,008 |
| 115,846 | ||
Net deferred tax liabilities (a) | $ | (63,803) | $ | (70,883) | ||
| (a) | As of December 31, 2025 and 2024, net deferred tax liabilities consist of $65.9 million and $72.4 million, respectively, included within deferred tax liabilities, net on the consolidated balance sheets and $2.1 million and $1.5 million, respectively, deferred tax asset, net related to the Company’s QOF entity included within other assets on the consolidated balance sheets. |
As of December 31, 2025 and 2024, the Company had $9.5 million and $9.1 million, respectively, of federal NOLs. The federal NOLs are specific to the Company’s QOF entity and do not expire. As of December 31, 2025 and 2024, the Company had state NOLs of $5.8 million and $4.0 million, respectively. The majority of these state NOLs are available to offset future taxable income through 2044 and will begin expiring in 2040. As of December 31, 2023, the Company’s valuation allowance was $0.3 million against approximately $7.2 million of certain state NOLs. During 2024, the Company utilized these NOLs and released this valuation allowance. As of December 31, 2025 and 2024, the Company had income tax payable of $2.1 million and $1.8 million, respectively, included within accounts payable and other liabilities on the consolidated balance sheets.
Income tax payments, net of refunds, by jurisdiction are presented below:
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
U.S. Federal | $ | 37,020 | $ | 29,244 | $ | 26,400 | |||
State of Florida |
| 8,650 |
| 4,900 |
| 4,600 | |||
State of Georgia |
| — |
| — |
| (82) | |||
Total income tax payments, net | $ | 45,670 | $ | 34,144 | $ | 30,918 | |||
In general, a valuation allowance is recorded if, based on all available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in future years in the appropriate tax jurisdictions to obtain a benefit from the reversal of deductible temporary differences and from loss carryforwards. As of both December 31, 2025 and 2024, the Company did not have a valuation allowance.
Significant judgment is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The Company regularly assesses the likelihood of adverse outcomes resulting from potential examinations to determine the adequacy of its provision for income taxes and applies a “more-likely-than-not” in determining the financial statement recognition and measurement of a tax position taken or expected to be taken in the tax returns. The Company has not identified any material unrecognized tax benefits as of December 31, 2025 or 2024. There were no penalties required to be accrued as of December 31, 2025 and 2024. The Company records interest related to unrecognized tax benefits, if any, in interest expense and penalties in other income, net.
The Company is currently open to examination by taxing authorities for the tax years 2022 through 2024.
On July 4, 2025, the “One Big Beautiful Bill Act” (the “OBBBA”) was signed into law, which includes significant changes to federal tax law and other regulatory provisions that may impact the Company. The Company has determined that the OBBBA did not have a material impact on the Company’s financial position, results of operations, and cash flows.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 2, 2017 | |
| 2015 | Mar 3, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.