Which student lodging, homestay, camp, and school-space charges were taxable in Florida?

Plain-English summary

Florida taxed ordinary student sleeping accommodations unless an exemption applied. Restricting dormitories and villas to enrolled students did not itself avoid transient-rental tax.

Homestay payments were not taxable rent because host families did not advertise lodging and received only an expense stipend for a cultural program. Full-time postsecondary students could qualify with documentation, and custodial-camp lodging was exempt when care was provided. Other lodging remained taxable. Classroom and office rent was taxable.

What this means for you

Document full-time enrollment, custodial care, homestay purpose, and resale treatment for subleased rooms.

Common questions

Q: Were all enrolled students exempt? No.

Q: Were host-family stipends taxable rent? No on these facts.

Citations and references

• Fla. Stat. §§ 212.03 and 212.031 — lodging and commercial rent
• Fla. Admin. Code r. 12A-1.061 — student, camp, and resale rules
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 03A-010

Original ruling text

SUMMARY

QUESTION: Does the tax imposed on transient rentals of
sleeping accommodations apply to charges to students that
stay in junior dormitories and adult villas located on the
campus of a facility that provides educational and sports
instruction when the sleeping accommodations are only
available to students enrolled in programs at the facility?

ANSWER - Based on Facts Below: Yes, the tax imposed on
transient rentals of sleeping accommodations applies to
charges to students that stay in junior dormitories and
adult villas located on the campus of a facility that
provides educational and sports instruction. The
limitation that only students enrolled in programs at the
facility may stay in the junior dormitories and adult
villas does not prevent the imposition of the tax on
transient rentals, unless an exemption applies. Exemptions
to the tax imposed on transient rentals that may apply are
the exemption for full-time students enrolled at a
postsecondary educational institution and students enrolled
in a custodial camp.

QUESTION: Does the tax imposed on transient rentals of
sleeping accommodations apply to charges to students that
stay off campus with either a host family (homestay) or in
other facilities?

ANSWER - Based on Facts Below: The tax imposed on transient
rentals of sleeping accommodations does not apply to
charges to students that stay with a host family (homestay)
nor does it apply to the payment to the host families.
Host families are generally solicited through churches and
personal contacts. Host families do not advertise their
homes to the public as places available to transient or
permanent guests. Additionally, the purpose of the homestay
program is to provide a foreign student with a favorable
experience with another culture, not to provide gain or
benefit to the host families.

For students that stay in other facilities off campus, the

tax imposed on transient rentals applies in the same manner
as when the student stays on campus.

QUESTION: Is the rental of office and classroom space from
the operator of the campus taxable?

ANSWER - Based on Facts Below: Yes, the rental of office
and classroom space from the operator of the campus is
taxable.

QUESTION: Is the payment for the sleeping accommodations
for students from the postsecondary institute to the
operator of the campus taxable as a rental of real property
or as a transient rental?

ANSWER - Based on Facts Below: The rental of real property
used exclusively as dwelling units is exempt, but tax is
imposed on the transient rental of sleeping accommodations,
including those for students. When the transient
accommodations are subrented, however, the renter may
choose to either issue a resale certificate to the operator
of the facility or take a credit for the tax paid to the
operator of the facility.

Mar 07, 2003

Re: Technical Assistance Advisement 03A-010
Tax - Sales and Use Tax - Student Living Accommodations
Sections 212.03 and 212.031, F.S.
Rule 12A-1.061, F.A.C.
XXX ("Taxpayer")
F. E.I. # XX

Dear :

This is in response to your letter dated May 28, 2002, for the
Department's issuance of a Technical Assistance Advisement
("TAA") concerning the above referenced party and matter. Your

letter has been carefully examined, and the Department finds it
to be in compliance with the requisite criteria set forth in
Chapter 12-11, F.A.C. This response to your request constitutes
a TAA and is issued to you under the authority of section
213.22, F.S.

Advisement Requested

You have requested our advisement concerning the taxability of
accommodations for students of the Taxpayer. Students of
various ages attending programs offered by the Taxpayer may
elect to stay with a host family (homestay), in a junior
dormitory or an adult villa, or off-campus. You have also
requested our advisement concerning the taxability of payments
between the Taxpayer, and XXX ("Company"), for the various
student accommodations.

Discussion of Facts

The Taxpayer provides English language instruction to
international students. The Taxpayer operates under the name
Internexus in Bradenton, Florida. The Taxpayer conducts its
courses on the campus of XXX ("School"), which is operated by
the unrelated entity, Company. The Taxpayer offers several
programs in English language studies to international students,
with a choice of accommodations. The language studies may be
combined with other programs offering academic, business, or
sports instruction. Cultural activities and instruction may also
be combined with the language studies.

You provided a description of the various accommodations
available to the Taxpayer's students, copies of contracts
between the Taxpayer and Company concerning student
accommodations and other issues, copies of a 1999 price list for
the Intensive English Program, schedules of amounts to be paid
by the Taxpayer to the Company, copies of leases for classroom
and office space by the Taxpayer from the Company, and copies of
information from the Taxpayer's internet site. According to the
information provided with your letter and the Taxpayer's
internet site, students are separately charged for
accommodations. Additionally, the charges for accommodations

vary with the type of accommodation selected.

You state in your letter that the Taxpayer is accredited by the
Accrediting Council for Continuing Education and Training
(ACCET). The U.S Department of Education recognizes
accreditation by ACCET. This accreditation allows the Taxpayer
to issue Form I-20, Certificate of Eligibility for Nonimmigrant
(F-1) Student Status - For Academic and Language Students, to
foreign students.

You stated in a telephone conversation that a minimum number of
hours per week in language studies must be met before the
Taxpayer can issue a Form I-20 to a foreign student to attend a
program. Foreign students enrolled in programs that do not meet
the minimum language study hours or other requirements must
obtain a tourist visa to enter the United States.

You have provided a copy of the accreditation letter from ACCET.
All programs offered by the Taxpayer are accredited by ACCET.
ACCET's website states that ACCET accredits institutions
providing noncollegiate continuing education. "Continuing
education" is postsecondary instruction designed to meet the
educational needs of adults not adequately served by educational
offerings in their communities. The accreditation is
avocational, non-Title IV. You have also provided a copy of a
memorandum from the Florida Department of Education concerning
the Taxpayer's Request for Statement of Exemption. The
exemption is an exemption from licensure as a school with the
Florida Department of Education under provisions pertaining to
nonpublic postsecondary institutions.

In your letter and in several telephone conversations, you state
the following concerning the language studies offered by the
Taxpayer. Information concerning the language studies program
in Florida is also available through the Taxpayer's website,
http://www.internexus.to/.

Parental consent is necessary to enroll all students under
twenty-one years of age. Parents of students under eighteen
years of age must also sign a medical consent form.

Students age eight to seventeen may take the Intercultural
Program. The Intercultural Program is from one to four weeks,
primarily in January, July, and August. The Intercultural
Program combines fifteen hours of language studies with trips to
museums, shopping centers, beaches, and other activities that
may include an optional excursion to a Florida attraction. You
stated that students generally sign up for the Intercultural
Program for four weeks or less and the emphasis is on the
excursions more than the language studies. The Intercultural
Program is considered to be a vacation camp. Foreign students
participating in the Intercultural Program do not qualify for a
Form I-20. They must obtain a tourist visa to enter the United
States.

Three levels of Intensive English Studies are offered in fourweek sessions to students age sixteen and older. The SemiIntensive English Studies is held throughout the year, with
fifteen hours of language studies for four weeks. The Intensive
English Program is held throughout the year, with twenty hours
of language studies for four weeks. The Intensive English
Program is described as preparing the student for academic,
professional, and everyday English situations. The Special
Intensive English Program is held throughout the year, with
twenty hours of language studies plus five hours of academic,
business, or cultural studies. The English Plus Sports Program
combines the Intensive English Program with instruction in a
sport. In a telephone call on September 20, 2002, you stated
that the Taxpayer also provides instruction in other languages
or customizes a program, if requested.

Foreign students in the Intensive English and English Plus
programs qualify for a Form I-20. Foreign students in a program
that does not qualify for a Form I-20 must obtain a tourist visa
to enter the United States. Foreign students signing up for
four weeks or less in the English Plus Sports Program are not
issued a Form I-20. As with the Intercultural Program, the
shorter English Plus Sports Program is considered to be a
vacation camp, so students must obtain a tourist visa to attend.

Students have four choices for accommodations. Students may
choose to stay in a junior dormitory located on the Company's

School campus or students may choose to stay off campus with a
host family under the "homestay" program. Adult students,
defined as students 18 or older, and students under 18
accompanied by a parent may stay in the adult villas. Students
may also make their own arrangements for accommodations.
Occasionally, the taxpayer has obtained other accommodations off
campus for students.

Students staying in the junior dormitories are provided with
sleeping facilities, food, and use of campus facilities and
amenities. The junior dormitories are staffed twenty-four hours
a day to provide supervision. Additionally, evening activities
and outings, transportation, housekeeping, and security are
provided in the junior dormitories. Except for optional
activities, dormitory charges are all inclusive to the students.
For each student staying in the junior dormitory, the Taxpayer
pays a set fee to the Company to provide the supervisory and
other services, as well as sleeping facilities.

In a telephone conversation, you stated that sometimes groups of
15 or more students enroll in a program. You stated that an
adult coordinator or chaperon often accompanies the group, which
are usually younger children enrolled in the Intercultural
Program that stay in the junior dormitories. The coordinator or
chaperon may or may not be housed near the students or even on
the School campus. Once the group has arrived at the School
campus, the coordinator or chaperon accompanying a group is not
primarily responsible for the students. The main role of the
coordinator or chaperon, you state, is to accompany the students
while traveling to the School and to provide an adult who speaks
the language of the students while at the School. The
coordinator or chaperon accompanying the group would also be
available should one of the students need medical care.

With homestay, the host family provides sleeping facilities,
food, activities, transportation, and off campus supervision.
No contract exists between the Taxpayer and the host family, but
the host family receives $75 per week or $10 per day. Host
families are solicited through personal contacts and local
churches. The purpose of the homestay program is to allow
students to be part of an American family, to directly

experience American culture and to have an opportunity to
practice English.

Food and evening activities are not provided to students staying
in the adult villas. Only transportation to and from the
airport is provided to students staying in the adult villas.
Staff provides security and housekeeping but no other services
to these students. You state that tax has been collected and
remitted by Company on payments for use of the villas since July
1, 1999. Additionally, the taxpayer provides no off campus
supervision when students make their own arrangements for
accommodations.

Copies of contracts between the Taxpayer and Company have been
provided for two periods. Two contracts from the first period
cover June 1, 1993, through July 31, 1998; two contracts from
the second period cover August 1, 1998, through July 31, 2003.
One agreement from each time period concerns the lease of office
and classroom space from Company. The other agreements concern
payments for other items between the Taxpayer and Company,
including payments to the Company for students staying in villas
and dormitories.

The agreements for items other than the lease of office and
classroom space provide that the Company will receive all room
and board charges for all the Taxpayer's students staying at
School facilities. The June 3, 1993, agreement also states that
the Taxpayer's students will be permitted to enjoy certain
services and facilities provided by Company to its resident
students to the extent such services and facilities are
available. The Taxpayer has thirty days after the start of the
student's program to pay the room and board charges to the
Company. The Taxpayer will also pay all out-of-pocket expenses
incurred by Company employees on behalf of the Taxpayer. The
agreements also provide for payment of commissions between the
two parties, payment of tuition for students enrolled in Company
sports programs in conjunction with the language programs, and
use of trademark, insurance, and other terms relating to the
relationship between the two parties. The agreement
specifically provides that it does not form a joint venture
between the two parties.

The Department is currently auditing the Taxpayer for compliance
with sales and use tax statutes. In a telephone conversation
with this conferee, the Department's auditor and his supervisor
acknowledged that they received a copy of this TAA request. The
auditor and supervisor stated they had nothing to add to the
information provided by the Taxpayer.

Law and Analysis

First, this advisement will discuss the payments between the
Taxpayer and the Company. Then, the taxability of the sleeping
accommodations for the Taxpayer's students will be discussed.

You asked whether the payments between the Taxpayer and Company
were taxable. You contend that the payments to the Company for
student accommodations are pursuant to a lease that covers a
period greater than six months and so are not taxable. You also
ask if the agreement rises to a lease or rental of commercial
real property.

Section 212.031, Florida Statutes (F.S.), imposes a tax on
renting, leasing, letting, or granting a license to use real
property. Exemptions to the tax are also provided in s. 212.031,
F.S. Section 212.031(1)(a), F.S. (1995), provides, in part:

It is declared to be the legislative intent 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:
...

2. Used exclusively as dwelling units.

The lease of the office and classroom space from the Company is
taxable under s. 212.031, F.S. As tax is being paid to the
Company for the lease of the office and classroom space, these
payments are not an issue in the audit.

Real property used exclusively as dwelling units are exempt from
the tax imposed by s. 212.031, F.S. Section 212.03, F.S.,

however, imposes a tax on transient rentals of living quarters.
Section 212.03, F.S., also provides for some exemptions to the
tax imposed on living quarters. Section 212.03, F.S. (1995),
provides, in part:

(1) It is hereby declared to be the legislative intent
that every person is exercising a taxable privilege who
engages in the business of renting, leasing, letting, or
granting a license to use any living quarters or sleeping
or housekeeping accommodations in, from, or a part of, or
in connection with any hotel, apartment house,
roominghouse, or tourist or trailer camp. However, any
person who rents, leases, lets, or grants a license to
others to use, occupy, or enter upon any living quarters or
sleeping or housekeeping accommodations in apartment
houses, roominghouses, tourist camps, or trailer camps, and
who exclusively enters into a bona fide written agreement
for continuous residence for longer than 6 months in
duration at such property is not exercising a taxable
privilege. For the exercise of such taxable privilege, a
tax is hereby levied in an amount equal to 6 percent of and
on the total rental charged for such living quarters or
sleeping or housekeeping accommodations by the person
charging or collecting the rental. Such tax shall apply to
hotels, apartment houses, roominghouses, or tourist or
trailer camps whether or not there is in connection with
any of the same any dining rooms, cafes, or other places
where meals or lunches are sold or served to guests.

(2) The tax provided for herein shall be in addition to
the total amount of the rental, shall be charged by the
lessor or person receiving the rent in and by said rental
arrangement to the lessee or person paying the rental, and
shall be due and payable at the time of the receipt of such
rental payment by the lessor or person, as defined in this
chapter, who receives said rental or payment. The owner,
lessor, or person receiving the rent shall remit the tax to
the department at the times and in the manner hereinafter
provided for dealers to remit taxes under this chapter. The
same duties imposed by this chapter upon dealers in
tangible personal property respecting the collection and

remission of the tax; the making of returns; the keeping of
books, records, and accounts; and the compliance with the
rules and regulations of the department in the
administration of this chapter shall apply to and be
binding upon all persons who manage or operate hotels,
apartment houses, roominghouses, tourist and trailer camps,
and the rental of condominium units, and to all persons who
collect or receive such rents on behalf of such owner or
lessor taxable under this chapter.
...
(7)(a) Full-time students enrolled in an institution
offering postsecondary education and military personnel
currently on active duty who reside in the facilities
described in subsection (1) shall be exempt from the tax
imposed by this section. The department shall be empowered
to determine what shall be deemed acceptable proof of fulltime enrollment. The exemption contained in this subsection
shall apply irrespective of any other provisions of this
section. The tax levied by this section shall not apply to
or be imposed upon or collected on the basis of rentals to
any person who resides in any building or group of
buildings intended primarily for lease or rent to persons
as their permanent or principal place of residence.

(b) It is the intent of the Legislature that this
subsection provide tax relief for persons who rent living
accommodations rather than own their homes, while still
providing a tax on the rental of lodging facilities that
primarily serve transient guests.
...

Section 212.02, F.S., defines terms used in chapter 212, F.S.
Section 212.02(10), F.S., defines living quarters or sleeping or
housekeeping accommodations. Section 212.02(10), F.S.,
provides, in part:

(10) "Lease," "let," or "rental" means leasing or renting
of living quarters or sleeping or housekeeping
accommodations in hotels, apartment houses, roominghouses,
tourist or trailer camps and real property, the same being
defined as follows:

(a) Every building or other structure kept, used,
maintained, or advertised as, or held out to the public to
be, a place where sleeping accommodations are supplied for
pay to transient or permanent guests or tenants, in which
10 or more rooms are furnished for the accommodation of
such guests, and having one or more dining rooms or cafes
where meals or lunches are served to such transient or
permanent guests; such sleeping accommodations and dining
rooms or cafes being conducted in the same building or
buildings in connection therewith, shall, for the purpose
of this chapter, be deemed a hotel.

(b) Any building, or part thereof, where separate
accommodations for two or more families living
independently of each other are supplied to transient or
permanent guests or tenants shall for the purpose of this
chapter be deemed an apartment house.

(c) Every house, boat, vehicle, motor court, trailer
court, or other structure or any place or location kept,
used, maintained, or advertised as, or held out to the
public to be, a place where living quarters or sleeping or
housekeeping accommodations are supplied for pay to
transient or permanent guests or tenants, whether in one or
adjoining buildings, shall for the purpose of this chapter
be deemed a roominghouse.

(d) In all hotels, apartment houses, and roominghouses
within the meaning of this chapter, the parlor, dining
room, sleeping porches, kitchen, office, and sample rooms
shall be construed to mean "rooms."

(e) A "tourist camp" is a place where two or more tents,
tent houses, or camp cottages are located and offered by a
person or municipality for sleeping or eating
accommodations, most generally to the transient public for
either a direct money consideration or an indirect benefit
to the lessor or owner in connection with a related
business.

(f) A "trailer camp," "mobile home park," or "recreational
vehicle park" is a place where space is offered, with or
without service facilities, by any persons or municipality
to the public for the parking and accommodation of two or
more automobile trailers, mobile homes, or recreational
vehicles which are used for lodging, for either a direct
money consideration or an indirect benefit to the lessor or
owner in connection with a related business, such space
being hereby defined as living quarters, and the rental
price thereof shall include all service charges paid to the
lessor.
...

Rule 12A-1.061, Florida Administrative Code (F.A.C.), provides
additional guidance regarding the application of tax on rentals
of living quarters. Rule 12A-1.061, F.A.C., provides, in part:

(1) Except as provided in paragraphs (a) through (d), every
person is exercising a taxable privilege when engaging in
the business of renting, leasing, letting, or granting
licenses to others to use transient accommodations, unless
the rental charges or room rates are specifically exempt.
...
(d) Day nurseries, kindergartens, and church-operated or
other custodial camps that primarily provide professional
and personal supervisory and instructional services are not
required to register with the Department or collect tax on
their charges for lodging to the students or campers.

(2) DEFINITIONS. For the purposes of this rule, the
following terms are defined:
...
(f) "Transient accommodation" means each living quarter or
sleeping or housekeeping accommodation in any hotel, motel,
apartment house, multiple unit structure (e.g., duplex,
triplex, quadraplex, condominium), roominghouse, tourist or
mobile home court (e.g., trailer court, motor court,
recreational vehicle camp, fish camp), single family
dwelling, garage apartment, beach house or cottage,
cooperatively owned apartment, condominium parcel,
timeshare resort, mobile home, or any other house, boat

that has a permanent, fixed location at a dock and is not
operated on the water away from the dock by the tenant
(e.g., houseboat permanently moored at a dock, but not
including cruise liners used in their normal course of
business), vehicle, or other structure, place, or location
held out to the public to be a place where living quarters
or sleeping or housekeeping accommodations are provided to
transient guests for consideration. Each room or unit
within a multiple unit structure is an accommodation.
...
(8) SUBLEASES OR ASSIGNMENTS.

(a) Any person who has the right to the use or possession
of any transient accommodation and who subrents, subleases,
sublets, or licenses a portion of the accommodation is
required to register as a dealer and collect and remit the
applicable tax due on all such subrents, subleases,
sublets, or licenses to the proper taxing authority, except
as provided in subsection (1) of this rule.

(b) The dealer may elect to issue a resale certificate to
the property owner or the property owner's representative
to purchase transient accommodations exempt from tax or
take a credit for the tax that was paid to the owner or
owner's representative for transient accommodations when:

1. The transient accommodations are subrented, subleased,
   sublet, or licensed by the dealer to other guests or
   tenants; and

2. The dealer collects the applicable tax from the guest or
   tenant.
   ...
   (10) FULL-TIME STUDENTS.

(a) Full-time students enrolled in an institution offering
postsecondary education who reside in transient
accommodations are exempt from the taxes imposed on
transient accommodations. For the purpose of this rule, a
"full-time student" is one taking that number of hours or
courses considered by his or her educational institution to

constitute full-time enrollment. This exemption applies if
either husband or wife is a full-time student.

(b) A written declaration of an appropriate official of the
student's institution reflecting that the student named in
the declaration is a full-time student of the institution
is proof of the student's full-time enrollment. The owner
or owner's representative is required to maintain the
written declaration in its records.

(c) The following is a suggested written declaration to be
completed and presented by the full-time student to the
owner or the owner's representative of the transient
accommodation.

The undersigned hereby declares that __
(Student's name) is currently enrolled as a full-time
student at ___ (Name of educational
institution), a postsecondary educational institution.
Dated this _ day of _, 19___

(Name of educational institution)
By ______
(Signature of appropriate official)
As ________
(Title of appropriate official)

In your letter, you contend that the various accommodations,
including the adult villas, do not appear to be accurately
described in the statutes concerning transient rentals. You
contend that the junior dormitories and villas are not held out
to the general public as seems to be required by the definitions
of hotels and rooming houses. You quote the definition of
"public" from the Webster's New World Dictionary as "the people
as a whole." You contend that the accommodations at the Company
are not available to the public as a whole, but only to students
and their families enrolled in the programs of either the
Taxpayer or Company.

Restrictions on occupancy do not make living accommodations
exempt from the tax imposed by s. 212.03, F.S. Restrictions on

occupancy do not make a transient rental facility fail to meet
the definitions found in s. 212.02(10), F.S., for living
quarters or sleeping or housekeeping accommodations. Hotels and
roominghouses are generally only open to those of the public
willing and able to pay the charges to occupy the sleeping
accommodations or living quarters provided. Depending on the
charges at a specific hotel or roominghouse, a large number of
the "people as a whole" may be restricted from occupying the
offered accommodations. Occupation of the sleeping
accommodations may also be restricted to those of the public who
are members of a specific group; however, that accommodation
will still meet the definition provided by s. 212.02(10), F.S.
In the Taxpayer's instance, occupation of the dormitories and
villas is restricted to those of the public who are also
enrolled in the programs offered by either the Taxpayer or
Company. The restrictions on occupancy of the sleeping
accommodations do not keep the dormitories and villas from
meeting the definition of sleeping accommodations as provided in
s. 212.02(10), F.S.

As noted, s. 212.03, F.S., imposes a tax on transient rentals of
sleeping accommodations, unless an exemption is applicable. The
contracts between the Taxpayer and Company that provide for
student accommodations on the School campus are titled
"Agreement" and do not provide for the rental of specific
accommodations or a specific number of rooms. The contracts
only provide that the Company will receive all room and board
charges for students staying at the School. The Taxpayer is,
however, subrenting or subleasing the sleeping accommodations to
students. For those rerentals for which no exemption is
applicable, the Taxpayer may choose to issue a resale
certificate to the Company or take a credit for the tax paid to
the Company for the sleeping accommodations as provided in Rule
12A-1.061(8), F.A.C. If the Taxpayer arranges for a student to
stay in off-campus sleeping accommodations, the Taxpayer may
also choose to issue a resale certificate to the off-campus
facility or take a credit for the tax paid to the off-campus
facility.

The homestay program, however, does not appear to fall within
the definitions of the type of accommodations subject to the

purview of s. 212.03, F.S. Homestay families are generally
solicited through churches and personal contacts. The families
are not advertising their homes to the public as places that are
available to transient or permanent guests. The families do
receive a small stipend of $10 per day to cover expenses such as
food and transportation costs that must be furnished by the
family.

Since the family's home is not represented as a place were
living accommodations are supplied for pay to transient guests,
the home would not appear to be a rooming house, as defined
under s. 212.02, F.S. The home also would not appear to fall
under the definition of a hotel, apartment, or tourist or
trailer camp. The real purpose of the homestay program is to
provide students with the opportunity to experience American
culture and to practice language skills within a friendly and
understanding environment.

Additionally, the purpose of the arrangement is not to allow the
American family to receive any type of gain or consideration for
renting or leasing living accommodations. The family is not
charging a rental fee. They are simply being reimbursed for a
portion of their out-of-pocket expenses incurred because the
student is living within their household. The homestay family
does not have the object of gain, benefit, or advantage in
participating in the homestay program. The family just desires
to provide a favorable experience to a foreign student or to
gain information about other cultures.

As such, for all participants in the homestay program, the daily
charge paid to the family is not subject to tax as a transient
rental. It does not represent rental charges made by one in the
business of leasing transient accommodations.

Other charges by the Taxpayer to students for sleeping
accommodations are taxable as transient rentals unless a
specific exemption applies. Section 212.03(7)(a), F.S.,
provides an exemption for full-time students enrolled in a
postsecondary education institution. No definition of
postsecondary education is provided in ch. 212, F.S. Webster's
New World Dictionary defines "secondary" as "second in order,

rank, sequence, importance, etc." "Secondary school" is defined
as "a school, as a high school, coming after elementary school."
"Post" is defined as "after in time, later." "Education" is
defined as "the process of education; teaching."

The taxpayer offers several different language programs to
students. You stated that the Intensive English Program, the
Special Intensive English Program, and the English Plus Sports
Programs qualify for the students to receive a Form I-20 to
enter the United States. Students attending the English Plus
Sports Programs for four weeks or less are not issued a Form I20. The Taxpayer's accreditation with ACCET is necessary for
the Taxpayer to be authorized to issue a Form I-20. The ACCET
accreditation is as an institution providing noncollegiate
continuing education. "Continuing education" is defined as
postsecondary instruction designed to meet the educational needs
of adults.

All students enrolled in the Taxpayer's programs are enrolled in
an institution offering post secondary education. If the
Taxpayer considers the student to be full-time, the students
enrolled in the Taxpayer's programs qualify for the exemption
from the tax imposed by s. 212.03, F.S., on transient rentals.
Rule 12A-1.061(10), F.A.C., instructs the postsecondary
institute to issue a declaration to the full-time student to be
given to the student's landlord as proof of the exemption from
transient rental tax. If the Taxpayer is arranging for the
sleeping accommodations, the Taxpayer is the student's landlord.

The Intercultural Program, which requires a tourist visa to
enter the United States, is generally for four weeks or less and
is offered to students ages eight through seventeen. The
program emphasizes excursions off the School campus more than
the language studies. The Intercultural Program is in the
nature of a vacation camp program, or custodial camp, that
includes language instruction rather than a formal language
study program. The English Plus Sports Program and other
programs for which foreign students must obtain a tourist visa
would also be considered a vacation camp program or custodial
camp.

The Taxpayer would still be considered as providing custodial
care to students traveling in groups with a coordinator or
chaperon. As stated, the coordinator or chaperon is not
primarily responsible for the care of the students once the
students have arrived at the School. The chaperon may not be
housed near the students or even on the School campus.

Rule 12A-1.061(1)(d), F.A.C., provides that custodial camps do
not need to collect sales tax on charges for lodgings to the
students or campers. Charges for lodgings would be taxable if
custodial care is not provided for the student, such as a
student staying in the adult villas with a parent or an adult
student. Accommodations, other than homestay, are taxable for
students who do not qualify as full time or are not being
provided custodial care by the Taxpayer.

Conclusion

The Taxpayer's rental of classroom and office space is taxable
under s. 212.031, F.S. The Taxpayer is subleasing the sleeping
accommodations for students rented from the Company. For those
accommodations for which no exemption is applicable, the
Taxpayer may choose to issue a resale certificate to the Company
or take a credit for the tax paid to the Company for the
sleeping accommodations as provided in Rule 12A-1.061(8),
F.A.C., as the sleeping accommodations for students are
subleased to the students.

Homestay payments to host families do not represent rental
charges made by one in the business of leasing transient
accommodations. Therefore, the payments to the host family are
not subject to the tax imposed by s. 212.03, F.S. Additionally,
the charges for homestay collected by the taxpayer are also not
subject to the tax imposed by s. 212.03, F.S.

Full-time students enrolled in an institute offering postsecondary education are exempt from the tax imposed by s.
212.03, F.S. Tax is not collected for lodging charges for
students enrolled in a vacation camp program or custodial camp
program when custodial care is provided. Lodging charges or
accommodations, other than homestay, are taxable for students

who do not qualify as full time or are not being provided
custodial care by the Taxpayer.

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 advise, 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., which 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 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 which might lead to
identification of the Taxpayer. Your response should be
received by the Department within 15 days of the date of this
letter.

Sincerely,

Debra Gifford, CPA
Tax Law Specialist
Technical Assistance & Dispute Resolution

Control # 50526