Sales and Use Tax Changes Related to Admissions
John P. Kruczek, University Controller
The following are recent changes to the State of Florida laws regarding the collection and remitting of Sales and Use Tax’s.
Changes to Sales Tax on Admissions to University Sponsored Events
Effective immediately, no tax is due on admissions to certain university-sponsored events. This exemption applies whenever the event is held in a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or a publicly owned recreational facility, and all of the funds at risk and 100% of the risk of success or failure must belong to the university.
Certain Charges and Separately Stated Admission Related Fees
State or locally imposed seat taxes, fees, and surcharges are not considered part of the sales price or actual value of admission and are thereby exempt from sales tax. Separately stated ticket service charges imposed by a facility ticket office or a ticketing service are also not considered to be a part of the sales price or actual value of admission and are thereby exempt from sales tax.
Change in Due Date for Remitting Sales Tax on Admissions
Tax must be collected at the time an admission ticket is sold for taxable admissions. Whenever the event is held at a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or a publicly owned recreational facility, the tax is not due to the Department of Revenue until the first day of the month following the actual date of the event. Tax paid on season or series tickets should be apportioned among each event in the season or series and remitted to the Department of Revenue accordingly.
Concessionaires and Separately Stated Charges from a Rental or License of Real Property
Publicly owned recreational facilities and convention halls, exhibition halls, auditoriums, stadiums, theaters, arenas, civic centers, and performing arts centers qualify for a sales and use tax exemption for the lease, sublease, license, or rental of real property to persons providing food and drink concessionaire services within the facility. Leases, subleases, licenses, or rental of these same facilities to concessionaires who sell souvenirs, novelties, or other event-related products are exempt from sales tax for the part of the charge that is based on a percentage of sales. Certain other separately stated charges imposed on a lessee or licensee of real property may be exempt from sales and use tax. The charges may be for food, drink, or services that are either required or available in connection with the lease or license to use the real property. This exemption applies only if the charges are imposed by a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or a publicly owned recreational facility.
Change in Due Date for Remitting Sales Tax on Rental, Lease and License Fees Received for the short-term Use of Facilities
Sales and use tax imposed on the rental, lease, or license of certain facilities is not due to the Department of Revenue until the first day of the month following the last day of the event if:
- the rental, lease or license is for the use of a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or a publicly owned recreational facility;
- the event lasts no more than 7 consecutive days; and,
- Tax is collected at the time of payment for the rental, lease, or license.
Tax on rental, lease, or license fees not meeting these terms continues to be due and payable at the time of receipt by the lessor or other person who receives the rental or payment.
Exemption for Real Property leased or Licensed for Mobile Communications Purposes has been Expanded The exemption will apply to real property including buildings on which the following are placed: towers, antennas, cables, accessory structures, or equipment (not including switching equipment), used in the provision of mobile communications services. Mobile communications includes, but is not limited to, cellular communications, personal communications services, paging services, specialized mobile radio services, and any other form of mobile one-way or two-way communications service.
All of the changes in sales tax law stated above are effective immediately. These changes are included in Chapters 00-260 and 2000-345 Laws of Florida and are also explained in Tax Information Publications 00A01-10, 00A01-12, and 00A01-13. Please review these changes to determine if they will affect any of the activities within your department. If you have any questions regarding this information, please call Steve Sauls at 392-1324.