Which charges in Florida hunting and fishing packages were taxable?

Subject

Hunting and Fishing Activities

Plain-English summary

Charges solely for hunting or fishing access to the substantially agricultural property were not taxable, whether billed for a day, by birds taken, annually for a lake, or annually to a hunt club. Separate charges for guides, boats, tackle, or dogs were also nontaxable services.

Lodging was taxable, and prepared meals sold as separately stated package components were taxable. If taxable lodging and nontaxable access were sold for one unitemized package price, the entire charge was taxable. A complimentary hunting meal was not taxed to the customer, but the company owed tax on its cost and preparation.

What this means for you

Land classification and invoice structure both mattered. Separately stating taxable lodging and meals preserved the ruling's nontaxable treatment for qualifying access and guide services.

Common questions

Q: Was a written license agreement required for the access exemption? No.

Q: Were overnight cabins taxable? Yes.

Q: What happened if the package was not itemized? The entire charge was taxable when it included lodging.

Citations and references

• Fla. Stat. § 212.03 — transient lodging tax
• Fla. Stat. § 212.031 — tax on leases and licenses to use real property
• Fla. Stat. § 212.08(1)(c)1. — food exemption
• Fla. Stat. §§ 212.08(7)(y), (oo) — real-property exemptions
• Fla. Stat. § 193.461 — agricultural classification
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 00A-040

Original ruling text

SUMMARY

QUESTION 1: Is the taxpayer's charge for the right to fish
on the taxpayer's property for an eight-hour period subject
to tax?

ANSWER - Based on Facts Below: No. The property is
assessed substantially as agricultural property, and
accordingly the license to use the property is not taxable.
If the taxpayer arranges for a guide, who furnishes a boat
and tackle, the charge for the guide is a non-taxable
charge for a service.

QUESTION 2: Is the taxpayer's charge for the right to go
quail hunting on the property for a single day subject to
tax if the charge is based on a stated fee plus an
additional charge for birds killed in excess of a certain
number?

ANSWER - Based on Facts Below: The charge for the use of
the property, no matter how computed, is not taxable. If
an additional charge is made for a guide and dogs, the
additional charge is for the performance of services and
not taxable. A complimentary meal provided in connection
with the overall charge for hunting is not taxable to the
customer, but the taxpayer would pay tax on the cost of the
meal and its preparation.

QUESTION 3: Is the taxpayer's charge for a three-day
hunting and fishing package, including meals and overnight
lodging, taxable?

ANSWER - Based on Facts Below: The charge for lodging is
taxable pursuant to section 212.03, F.S. If the taxpayer
does not separately charge for other items, such as the
right to use the property for hunting and fishing purposes,
the entire charge is taxable.

QUESTION 4: Is the taxpayer's charge for a three-day
hunting and fishing package, including meals and overnight
lodging, taxable if the taxpayer separately states the

separate charges?

ANSWER - Based on Facts Below: The charge for lodging is
taxable pursuant to section 212.03, F.S. The charge for
prepared meals is taxable as the sale of tangible personal
property. The charge for the right to use the property for
hunting and fishing purposes is not taxable.

QUESTION 5: Is the taxpayer's annual charge for the right
to fish on a specific lake located on the property taxable?

ANSWER - Based on Facts Below: No. The charge for the
right to use the property for hunting and fishing purposes
is not taxable.

QUESTION 6: Is the taxpayer's annual charge for the lease
of 500 acres of the property to a hunt club taxable if the
hunt club is permitted to use the property solely for
hunting purposes?

ANSWER - Based on Facts Below: No. The charge for the
right to use the property for hunting and fishing purposes
is not taxable.

QUESTION 7: Does the answer to any of the above questions
depend upon the execution of a written license agreement?

ANSWER - Based on Facts Below: No. The charge for the
right to use the property for hunting and fishing purposes
is not taxable. The existence of a written license
agreement may clarify the respective obligations of the
parties to the agreement, but it does not affect the
essential nature of the transaction for purposes of Chapter
212, F.S.

Jul 12, 2000

Re: Technical Assistance Advisement 00A-040

Sales & Use Tax - Hunting and Fishing Activities
Sections: 212.03; 212.031; 212.08(1)(c)1.; 212.08(7)(y);
212.08(7)(oo), F.S.
Petitioner: XXX (Company)
FEI: XX

Dear :

This is a response to your petitions, as well as several
informal conferences, requesting the issuance by the Department
of a Technical Assistance Advisement ("TAA") concerning the
above referenced party and matter. Your petitions, and
supplemental information, have been carefully examined and the
Department finds such petitions to be in compliance with the
requisite criteria set forth in Chapter 12-11, F.A.C. This
response to your requests constitutes a TAA and is issued to you
under the authority of s. 213.22, F.S.

DISCUSSION OF FACTS

The Company, headquartered in Georgia, owns a large tract of
timberland consisting of several thousand acres located in
Florida. The majority of the property is classified as
agricultural property within the meaning of Section 193.461,
F.S. The Company offers to others the opportunity to come onto
the property to hunt and/or fish for a fee. All trips are booked
through the Georgia headquarters, and all invoices and payments
are issued and received by the Company at its headquarters.
When a potential customer books a fishing trip with the Company,
a guide is contacted by the Company and the guide will meet the
customer on the property to take that customer fishing at one or
more of the lakes located on the property. The guides are not
employees of the Company, but are paid a fee by the Company.
The guide furnishes the boat and fishing tackle. The customer
is in no way involved in hiring or paying the fishing guide.
You state, "[w]hen the customer arranges the fishing trip, the
Company typically requests a deposit from the customer, which
deposit is sent by the customer to the Company at its Georgia
headquarters. The balance of the fee payable by the customer is
typically collected immediately prior to or immediately
following the trip." With respect to hunting, you state,

"[w]hen a customer books a hunting trip with the Company, the
Company will provide a guide, who is typically a full-time
employee of the Company, and arrange for that guide to meet the
Company's customer on the Property and take that customer
hunting on the Property."

With respect to fishing, the brochure you have furnished
indicates that most of the Company's guests prefer guided
fishing trips, which generally involve fishing for bass. This
is strictly catch and release fishing. The brochure indicates it
is not uncommon for a fisherman to have a 100-bass day.

With respect to hunting, the brochure states that hunting for
duck and quail includes the hunting of released birds, as well
as native birds. The brochure states that hunting types include
permanent blinds, floating blinds, and boat blinds.
Professionally trained dogs and custom built quail buggies are
provided for the use of the guests. Deer hunting is done from
permanent tree stands and ground blinds and is guided by a local
expert. Professional gator hunters and air boats are provided
for guests interested in gator hunting.

You have indicated that recently the Company has constructed
several cabins on the property for overnight stays by guests.
The Company solicits potential customers through advertising,
including the distribution of brochures and price lists. You
state that the Company's cabins are solely for the purpose of
providing overnight accommodations (including meals) to
customers who come to the property to hunt and/or fish for more
than one day and that the Company does not hold itself out as
providing lodging or meals to the general public. However, the
brochure and rate information sheet that you have provided
emphasizes lodging accommodations as part of what is available
to the Company's customers. According to the rate sheet, all
the customer packages, except the day trip packages, include
overnight stays in the cabins. Additionally, the cabins are
also made available to individuals who will neither hunt nor
fish on the Company's property. You state that there may be
occasions where a customer may desire to bring his or her spouse
who will not hunt and fish. In that case, an additional charge
may be made to the customer for providing overnight

accommodations and meals to the nonhunting/nonfishing guest. You
further state that, until recently, a single, non-itemized
charge was made to the customer, whether the charge was for a
day trip or a package involving overnight accommodations or
meals. The only exceptions to this were the following:

1. If the customer brought along his or her spouse and
   his or her spouse does not want to hunt or fish, a
   small $50 to $100 per day additional charge was made
   to cover the additional costs of providing meals and
   lodging to the spouse and this additional charge would
   be separately itemized on the customer's invoice;

2. To the extent a customer was quail hunting and wanted
   to bag more than 12 quail, the Company made a separate
   additional charge of approximately $7.50 per bird for
   each bird in excess of 12 which that hunter takes and
   this additional charge would be separately itemized on
   the customer's invoice;

3. If a customer shot a round of skeet or trap while on
   the Property, a separate $5 to $10 charge per round
   was made for this activity and would be separately
   itemized on the customer's bill; and

4. Finally, if a customer booked a day trip but also
   wanted lunch provided, a separate itemized charge was
   made for that meal on the customer's invoice.

In addition to the activities described above, the Company also
leases part of the property to others for hunting use. These
leases typically are for one year and only grant the lessee the
right to hunt on the real property covered by the lease.
Additionally, the Company will occasionally grant the right to
fish in a specifically identified lake located on the property
(for an annual fee).

REQUESTED ADVISEMENTS

You have asked for guidance with respect to ten situations, each
of which is addressed in turn.

Situation I

A customer books an eight-hour fishing trip on the property and
is quoted $250. The Company arranges for a guide who meets the
customer on the property and takes the customer fishing for
eight hours. The guide furnishes the boat and fishing tackle.
No food or lodging is provided to the customer. After the trip
the customer remits $250 to the Company in Georgia.

Request

Is any portion of the charge made in Situation I subject to
sales tax?

Determination

Section 212.031, F.S., provides that "every person is exercising
a taxable privilege who engages in the business of renting,
leasing, letting, or granting a license for the use of any real
property unless such property is ... [among other things]
[a]ssessed as agricultural property under s. 193.461...."

In Situation I, the Company is allowing the Customer to use the
property, assessed substantially as agricultural property, for
eight hours for the purpose of fishing. Under section 212.031,
F.S., that license to use the property is not taxable.

The Company's provision of a guide who furnishes the boat and
fishing tackle is the provision of a service that is exempt from
tax. Section 212.08(7)(y), F.S., provides that the charge for
chartering any boat or vessel, with the crew furnished, solely
for the purpose of fishing is exempt.

Thus, since both the charges for the use of the Company's
property for fishing purposes and for the provision of a guide
and boat are exempt from tax, the total charge made in Situation
I is exempt.

Situation II

A customer contacts the Company and desires to go quail hunting
on the property for a single day, with no overnight
accommodations. The customer requests that lunch be provided by
the Company. The Company quotes the customer a charge of $350,
which includes a guide, hunting dogs, up to 12 quail, and lunch.
The customer remits a deposit of $150 prior to the hunt. The
customer then arrives on the property at the proper time, hunts
quail (shoots 20) and is delivered an invoice of the remaining
amount due, which is to be paid upon receipt. The invoice sets
forth the following:

Quail hunt and lunch (including 12 birds) $ 350
Eight (8) additional birds @ $7.50 each
Total Charge:

$ 410

Less deposit:

• 150

Total Amount Due:

60

$ 260

Request

Are the charges made in Situation II subject to sales tax? If
so, what portion of the charges is subject to sales tax?

Determination

As with Situation I, the Company is allowing the customer to use
its property, this time for the purpose of hunting quail. The
charge made by the Company for such use is exempt from tax under
section 212.031, F.S. That charge would include the charge for
the shooting of additional birds, which is simply a measure of
the extent of the use made by the customer of the property.
The charge made for the guide and dogs is a charge made for the
performance of a personal service and is not subject to sales
and use tax.

If a charge is made for lunch, that charge is subject to tax
under section 212.08(1)(c)1., F.S., as the sale of a meal for
consumption on or off the premises. The charge should be
separately stated, and tax should be collected and remitted on
that separately-stated charge. If, however, the meal is
provided on a complimentary basis in connection with the overall
charge for hunting, the meal would not be taxable to the

customer: the Company would pay tax on the cost of the meal and
its preparation.

It is noted that there is an exemption (s. 212.08(7)(oo), F.S.)
for complimentary food service by public lodging establishments
licensed under Part I of Chapter 509, F.S. That exemption would
appear to be applicable if the Company is licensed under that
Part.

Situation III

This situation involves the booking of a three-day hunting and
fishing package, including meals and overnight lodging. The
trip includes fishing all day on the first day, duck and quail
hunting on the second day, and duck hunting and fishing on the
third day. The customer also brings his wife along. She will
not fish or hunt but will partake of meals. The customer is
quoted $1,200 for the trip plus $200 for the spouse to cover her
meals and lodging. The customer sends a deposit of $500 to the
Company in Georgia. After the customer and his wife go on the
trip, an invoice from the Company is delivered and paid by the
customer.

The invoice indicates the following:

Three day combo hunting/fishing trip

$ 1,200

Additional non/hunting-non/fishing guest $ 200
Total charge

$ 1,400

Less deposit:

$ - 500

Total Amount Due:

$ 900

Request

Are any of the charges made by the Company to its customers in
Situation III subject to sales tax? If so, which charges or
portions thereof are subject to sales tax? You further question
whether either the tourist development or convention development
taxes would apply and to what extent.

Determination

Section 212.03, F.S., imposes a tax on those persons engaged in
the business of providing any living quarters or sleeping or
housekeeping accommodations, unless such accommodations are
leased pursuant to a bona fide written agreement for a rental
term in excess of six (6) months. The tax imposed is at a rate
of six percent on the total rental charged. Section 212.02(2),
F.S., defines business as being "any activity engaged in by any
person ... with the object of private or public gain, benefit,
or advantage, either direct or indirect...." At a minimum, the
Company is receiving an indirect benefit from providing the
overnight accommodations. Without the availability of such
accommodations, the Company's property might not be as
attractive to potential customers. Or the potential customers
might not elect overnight packages if they do not have a place
to sleep and dine, or a place where their non-hunting or nonfishing spouse can stay. Thus, the lodging accommodations help
ensure the success of Company's venture, by making the overnight
packages more attractive and marketable. As such, this will
increase returns from the property. Because the Company is
receiving a benefit or advantage from providing the lodging
facilities, it is in the business of renting sleeping
accommodations. Since the rentals are of a short-term nature
(i.e., usually a few days at most), tax is due with respect to
the lodging.

The submitted invoicing policy does not break out the amounts
for the hunting, fishing or meals. Thus, it appears the entire
amounts rendered are for the right of occupancy. Accordingly,
the total (including the deposit) is taxable for the sales and
use tax and any corresponding convention development and tourist
development local option taxes.

Situation IV

This situation involves the same facts as in Situation III
above, except that the invoice provided by the Company to the
Customer sets forth the following:

One and one-half days fishing

$ 450

One and one-half days hunting

550

Meals

100

Two nights lodging

100

Additional Guest Fee

200

Total charge

$ 1400

Less deposit

• 500

Total Amount Due:

$ 900

Request

Is any portion of the charge made by the Company to its
customers in Situation IV subject to sales tax, admissions tax,
or transient rentals tax? If so, which charges or portions
thereof are subject to which tax? You further question whether
either the tourist development or convention development taxes
would apply and to what extent.

Determination

The charges for fishing and hunting ($950) are not taxable. The
meals ($100) are taxable as sales of prepared meals (sales of
tangible personal property). The lodging, including the Guest
Fee ($300), is subject to the transient rental tax, including
any corresponding convention development and tourist development
local option taxes.

Situation V

Company grants to an individual the right to fish on a specific
lake located on the property in exchange for an annual fee of
$1,200.

Request

Is the charge made in Situation V subject to any sales tax or
admissions tax?

Determination

As indicated earlier in this discussion, the charge for hunting
or fishing on agricultural property is exempt.

Situation VI

The Company, as lessor, enters into a lease of 500 acres of real
property for $2,000 with a hunt club. The hunt club is
permitted to use the property solely for hunting purposes.

Request

Is the lease payment made in Situation VI subject to any sales
tax or admissions tax?

Determination

As with Situation V, such a lease does not constitute a taxable
transaction, provided that the property is assessed as
agricultural property under Section 193.461, F.S.

Situation VII

A customer calls the Company and arranges for an eight hour
fishing trip. The Company quotes the customer a total fee of
$250, consisting of the following:

License to Use Property

$ 200

Guide Services and Boat Charter $ 50

Thereafter, upon arrival, the customer signs a form entitled
"License to Use Real Property and Waiver, Release and Indemnity"
(the License Agreement). This License Agreement gives the
customer a non-exclusive, non-assignable, and revocable right to
use the Company's real property for the purpose specified in the
License Agreement (e.g., bass fishing). The privilege is
revocable if the customer fails to follow the Company's rules
and regulations. The License Agreement also serves to hold
Company harmless for death or injury to the customer and/or to
the customer's possessions occurring on the property. After
executing such form, the customer goes fishing on the Company's
property with a guide in a boat provided by the guide.

Request

Are the payment for the license and the payment for guide

services/boat charter subject to any sales tax or admissions
tax?

Determination

This situation is the same as Situation I. In Situation I, the
Company is allowing the Customer to use the property,
substantially all of which is assessed as agricultural property,
for the purpose of fishing. Under section 212.031, F.S., that
license to use the property is exempt. The existence of a
written license agreement may clarify the respective obligations
of the parties to the agreement, but it does not affect the
essential nature of the transaction for purposes of Chapter 212,
F.S.

Situation VIII

The facts are the same as Situation VII, except that the
customer wants to bring his own boat and not use the services of
a guide. The Company quotes the customer a total fee of $200,
consisting of the following:

License to Use Property

$ 200

Upon arrival, the customer signs the License Agreement, and then
goes fishing on the property in his own boat.

Request

Is the payment for the license subject to any sales tax or
admissions tax?

Determination

The transaction again involves a license to use property that is
assessed as agricultural property, and the license for use of
such property is exempt from tax.

Situation IX

A customer contacts the Company and desires to go quail hunting

for a single day. The customer does, however, request that he
be provided with a lunch during the course of the day by the
Company. The Company quotes the customer a charge of $350,
consisting of the following:

License to Use Property

$ 300

(Limited to 12 quail)
Guide Fee

$ 50

The customer arrives on the property, signs a License Agreement,
and goes hunting with a guide who provides the hunting dogs
needed to hunt quail. During the customer's visit, the Customer
is provided lunch by the Company. During the hunt, the Customer
shoots 20 quail (i.e., 8 more than permitted by the license).
After the hunt, the customer is delivered an invoice that sets
forth the following:

License to Use Property

$ 300

(Limited to 12 quail)
Guide Fee

$ 50

Eight (8) additional birds
@ $7.50 each

$ 60

Total Charge

$ 410

Request

Are any of the Charges made in Situation IX subject to any sales
tax or admissions tax?

Determination

The License Agreement creates a license to use property that is
classified as agricultural property "within the meaning of
Section 193.461, Florida Statutes." Accordingly, the amount
paid for the license for use of the property, or $360 (including
$60 for the additional quail), is exempt from tax. The $50
guide fee is a charge for a service that is not subject to tax
under Chapter 212, F.S. With respect to the lunch, see the
discussion in Situation II, above.

Situation X

A customer contacts the Company and arranges a three-day hunting
and fishing package, including meals and overnight lodging. The
customer wants to bring his spouse who will not hunt or fish.
For this package, the Company quotes the customer a price of
$1,400, consisting of the following:

License to Use Property
(For Hunting and fishing)

$ 1,000

License to Use Property
(Non-Hunting and non-fishing) $ 200
Meals

$ 100

Two nights lodging
Total charge

$ 100
$ 1,400

Upon arrival, the customer and his spouse each signs a License
Agreement. Thereafter, the customer spends three days and two
nights on the property hunting and fishing. The customer is
given an itemized invoice as set forth above, which the customer
then pays.

Request

Are any of the Charges made in Situation X subject to any sales
tax or admissions tax?

Determination

The transaction involves a license to use property that is
assessed as agricultural property, and the amounts paid for use
of such property, $1,000 and $200, respectively, are exempt from
tax. However, the amounts paid for the accommodations are
subject to tax under Section 212.03, F.S., which imposes a tax
on those persons engaged in the business of providing any living
quarters or sleeping or housekeeping accommodations, unless such
accommodations are leased pursuant to a bona fide written
agreement for a rental term in excess of six (6) months. The
tax imposed is at a rate of six percent on the total rental
charged, which appears to be $100 in this situation. The meals
also are subject to tax.

This response constitutes a Technical Assistance Advisement
under section 213.22, F.S., which is binding on the Department
only under the facts and circumstances described in the request
for this advice, as specified in section 213.22, F.S. Our
response is predicated upon those facts and the specific
situation summarized above. You are advised that subsequent
statutory or administrative rule changes or judicial
interpretations of the statutes or rules upon which this advice
is based may subject similar future transactions to a different
treatment from that which is expressed in this response.

You are further advised that this response, your request, and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of section 213.22, F.S. Confidential information
must be deleted before public disclosure. In an effort to
protect confidentiality, we request that you provide the
undersigned with an edited copy of your request for Technical
Assistance Advisement, the backup material and this response,
deleting names, addresses, and any other details that might lead
to identification of the taxpayer. Your response should be
received by the Department within 15 days of the date of this
letter.

Should you have any further questions concerning this matter,
please do not hesitate to contact me.

Sincerely,

Robert D. Heyde
Senior Attorney
Technical Assistance & Dispute Resolution
850-922-4714

Control #: 33912