Was an adult professional-sports fantasy camp exempt as a vacation package when the operator rented the facilities and arranged former-player services itself?

Plain-English summary

Florida taxed the adult fantasy sports camp fee as an admission rather than exempting it as a vacation package. The operator did not satisfy the rule requiring all package components to be purchased from other parties because it rented the event facilities itself and provided the services of former professional players.

This was an in-person adult sports fantasy program, not an online fantasy contest. The operator licensed a professional team's name, marketed and sold the program, obtained facilities, and arranged former players, certified athletic trainers, equipment personnel, and professional umpires. The personnel were independent contractors rather than employees.

The operator also bought air transportation, hotels, uniforms, playing equipment, buses, food, insurance, and other materials from third parties and budgeted for Florida sales tax on taxable inputs.

Why the vacation-package rule failed

Section 212.04(1)(d) and Rule 12A-1.005(6) allowed a travel agent to pay tax when purchasing taxable package components rather than collect additional tax on a lump-sum sale only when several conditions were met. Among them:

• The package contained multiple components.
• Every component was purchased from a party other than the travel agent.
• Tax due on taxable components was paid at purchase.
• The package was sold for one price without component itemization.

Even if the operator qualified as a seller of travel, it failed the all-components-from-others requirement. Renting a stadium or other facility did not mean the customer bought that component from the facility owner; the operator assembled and provided the facility access as part of its own camp. The operator likewise provided the former-player services.

The entire camp fee was an admission

Florida's admissions definition covered charges for entering or participating in amusement, sport, or recreation. The Department therefore treated the fee charged to attend the fantasy camp as a taxable admission under section 212.04.

What this means for you

Sports-camp and experience operators

Bundling flights, hotels, meals, and equipment does not automatically create a tax-exempt vacation package. If you directly provide a core event, facility access, coaching, or athlete participation, the package may remain a taxable admission.

Travel agents

The exemption depended on purchasing every component from someone else. Document who legally sells each component to the traveler, not merely who owns the venue or performs under contract.

Professional teams and licensors

Licensing team marks and renting facilities to a separate promoter did not turn the promoter's camp into a third-party-supplied travel component under this ruling.

Common questions

Q: Was this about online fantasy sports?
A: No. It concerned an adult in-person camp using professional-team branding, sports facilities, and former players.

Q: Why was the vacation-package exemption denied?
A: The operator itself provided the facility and former-player components instead of purchasing every component from another party.

Q: Did paying tax on hotels, flights, meals, and equipment make the resale exempt?
A: No. Those tax-paid purchases did not fix the missing third-party requirement for the operator-provided components.

Q: What was taxed?
A: The fee charged to attend the fantasy camp, treated as an admission.

Citations and references

• Fla. Stat. § 212.02(1) — definition of admission
• Fla. Stat. § 212.04(1)(d) — vacation-package treatment and tax on admissions
• Fla. Stat. § 559.927(10) — seller of travel definition
• Fla. Admin. Code r. 12A-1.005(6) — conditions for vacation packages
• Fla. Admin. Code r. 12A-1.060 — dealer registration

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 04A-055

Original ruling text

SUMMARY

QUESTION: Whether the sale of adult fantasy sports packages are subject to tax or exempt as a "vacation package."

ANSWER - Based on Facts Below: Under the facts presented, the taxpayer rents all facilities utilized in the events

either from the team or the city or county that owns the facility, and provides the services of former professional
players. Therefore, those components are being provided by the taxpayer, and not by a third party, as the statute
requires. Accordingly, the taxpayer would not qualify for the exemption provided in section 212.04(1)(d), F.S., and

sales tax is due on the sports package.

September 10, 2004

Subject: Technical Assistance Advisement 04A-055
Adult fantasy sports program
Sales and Use Tax

Sections and Rules

Dear :

This response is in reply to your petition dated July 19, 2004, requesting the Department's issuance of a Technical
Assistance Advisement pursuant to s. 213.22, F.S., and Chapter 12-11, F.A.C., regarding the above referenced
matter and parties. An examination of your petition has established that you have complied with the statutory and
regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting your request for

issuance of a TAA.

ISSUE

Whether the sale of adult fantasy sports packages is subject to tax.

FACTS

Your request provides in part:

[The taxpayer] executes a license agreement with the respective team to create, sell and implement an adult sports
fantasy program under the team's name. The agreement calls for [the taxpayer] to obtain the necessary facilities,
obtain the services of former professional players, certified athletic trainers, equipment[,] personnel, and professional

umpires. None of the personnel are employees of [the taxpayer] and all are paid as independent contractors.

A license fee is paid to the respective team for the use of its trademarks and service marks.

The [taxpayer] undertakes the marketing of respective programs, handles all leads and all sales related and customer

related communications.

All facilities utilized in the events are rented by [the taxpayer] either from the team, or [from] the city or county [that]

owns the facility. [The taxpayer] does not own any facility at which programs are conducted.

All elements necessary are purchased by [the taxpayer] from third parties which include but are not limited to:

Air transportation

Hotel Accommodations

Uniforms (shirts, pants, belts, socks, caps, jackets)
Playing equipment; bats, balls, catcher’s gear

Bus transportation for attendees from airport & venue
Food Services: breakfast, lunch, dinners

Insurance

All other materials necessary to implement program

[The taxpayer] budgets for and pays Florida Sales Tax on all taxable components of the "Adventure" package.

DOCUMENTS PROVIDED BY TAXPAYER

1. A collection of Taxpayer's promotional materials,

2. Sample contract between the taxpayer and a major league baseball team, and

3. Copy of a project budget, showing that sales tax is paid on taxable components.

TAXPAYER POSITION

The taxpayer believes that it sells nontaxable vacation packages, as defined in section 212.04(1), F.S., and Rule 12A-

1.005, F.A.C., and therefore, it should not be required to register as a Florida dealer.

APPLICABLE STATUTES AND RULES

Section 212.02(1), F.S., provides:

(1) The term "admissions" means and includes the net sum of money after deduction of any federal taxes for admitting
a person or vehicle or persons to any place of amusement, sport, or recreation or for the privilege of entering or
staying in any place of amusement, sport, or recreation, including, but not limited to, theaters, outdoor theaters,
shows, exhibitions, games, races, or any place where charge is made by way of sale of tickets, gate charges, seat
charges, box charges, season pass charges, cover charges, greens fees, participation fees, entrance fees, or other
fees or receipts of anything of value measured on an admission or entrance or length of stay or seat box

accommodations in any place where there is any exhibition, amusement, sport, or recreation, and all dues and fees

paid to private clubs and membership clubs providing recreational or physical fitness facilities, including, but not
limited to, golf, tennis, swimming, yachting, boating, athletic, exercise, and fitness facilities, except physical fitness

facilities owned or operated by any hospital licensed under chapter 395.

Section 212.04, F.S., provides in part:

(1)(a) It is hereby declared to be the legislative intent that every person is exercising a taxable privilege who sells or
receives anything of value by way of admissions.

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(d) No additional tax is due on components incorporated as part of a package sold by a travel agent if the package
includes two or more components such as admissions, transient rentals, transportation, or meals; if all of the
components were purchased by the travel agent from other parties and any sales tax due on such purchases was
paid; and if there is no separate itemization of the admission, transient rental, transportation, meal, or other
components in the sales price of the package. This paragraph does not apply if the actual price charged for a
component by the dealer to a travel agent is less than the price charged to unrelated parties under normal industry
practices and the dealer and the travel agent are members of the same controlled group of corporations for federal

income tax purposes....

Section 559.927(10), F.S., provides:

(10) "Seller of travel" means any resident or nonresident person, firm, corporation, or business entity who offers for
sale, directly or indirectly, at wholesale or retail, prearranged travel, tourist-related services, or tour-guide services for
individuals or groups, including, but not limited to, vacation or tour packages, or vacation certificates in exchange for a
fee, commission, or other valuable consideration. The term includes any business entity offering membership ina
travel club or travel services for an advance fee or payment, even if no travel contracts or certificates or vacation or

tour packages are sold by the business entity.

Rule 12A-1.005, F.A.C., provides in part:

(1)(a) Every person is exercising a taxable privilege when such person sells or receives anything of value by way of
admissions, as defined in s. 212.02(1), F.S., except those admissions that are specifically exempt. Such seller is
required to collect on each admission charge for 10 cents or more the amount of tax provided for by the applicable

bracket provided in s. 212.12(9), F.S. Each admission is a single sale.

KKK

(6) SALES OF VACATION PACKAGES.

(a) For purposes of this subsection, a "vacation package" means a bundle consisting of two or more components,
such as admissions, transient rentals, transportation, or meals. Coupon books, maps, or other incidental items, that
are provided free of charge as part of a vacation package are not considered "components" for purposes of this

subsection.

(b) Tax is due on the purchase of taxable components of a vacation package at the time of purchase. No additional
tax is due on the components that are incorporated into a vacation package and sold by a travel agent, when all of the

following conditions are met:

1. The vacation package sold by the travel agent includes two or more components;

2. There is no separate itemization of the sales price of the package for the admission, transient rental, transportation,

meal, or any other component of the vacation package; and

3. All components of the vacation package were purchased by the travel agent from other parties and any sales tax

due on such purchases was paid at the time of purchase.

(c) A travel agent who itemizes the sales price of the taxable components of a vacation package must register with the
Department as a dealer. (See Rule 12A-1.060, F.A.C., Registration). Travel agents who itemize the sales price of the

taxable components of a vacation package are required to collect tax from the purchaser as follows:

1. When the itemized components are sold for the same amount or less than was paid for each of them, the travel
   agent is not required to collect any additional tax. No credit is allowed for tax paid on the purchase of the taxable

components.

2. When the itemized components are sold for more than the purchase price of each component, the travel agent is
   required to collect tax on the sales price of the taxable components. The travel agent may take a credit of tax
   previously paid for the taxable components that are separately itemized at a sales price greater than the purchase

price of the component.

(d) When the seller of components of a vacation package and the purchasing travel agent are members of the same
controlled group of corporations for federal income tax purposes and the amount charged for the component is an
amount less than the price charged to unrelated travel agents under normal industry practices, the related travel agent
is required to itemize the sales price of the components to the purchaser and collect tax on the itemized taxable

components. The travel agent may take a credit of tax previously paid for the taxable components.

DISCUSSION

Section 212.04(I)(d), F.S., allows travel agents to pay the tax on the purchase of taxable portions of travel packages

sold as a lump sum instead of collecting the tax from the purchaser on the sales price.

"Travel agent" is not defined by statute. Section 559.927(10), F.S., defines "sellers of travel," under which the taxpayer
may qualify. With such qualification, the taxpayer may be considered a travel agent for purposes of section
212.04(1)(d), F.S.

In order to qualify for treatment under Section 212.04(1)(d), F.S., and Rule 12A-1.005(6), F.A.C., a vacation package
must meet several criteria. First, the vacation package must include multiple components, such as admissions,

transient rental accommodations, transportation, and meals. Second, all of the components must be provided by

vendors other than the "travel agent," and sales tax must have been paid on the purchase price of all taxable

components. Third, the vacation package must be priced and billed as a single lump sum; there can be no separate
pricing and itemization of the component parts of the vacation package. Finally, if any of the components of the
vacation package were purchased from a related entity, the price paid for those components must be equal to the
price paid by unrelated travel agents for the components under normal industry practices. If these criteria are met, the

sale of the vacation package by a travel agency is not subject to additional sales tax under Rule 12A-1.005(6), F.A.C.

According to the facts provided, the taxpayer rents all facilities utilized in the events either from the team or the city or
county that owns the facility, and provides the services of former professional players. Therefore, those components
are being provided by the travel agent, and not by a third party, as the statute requires. Accordingly, the taxpayer
would not qualify for the exemption provided in section 212.04(1)(d), F.S., because it does not meet the second

criterion stated therein.

RESPONSE

The fee charged to attend the taxpayer's fantasy camp is an admission, and sales tax is applicable to the fee,

pursuant to section 212.04, F.S.

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 on 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 advisement is based, may subject similar future transactions to a different treatment than 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 s.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,

Kelley A. Cramer

Attorney

Technical Assistance and Dispute Resolution
(850) 922-4835

KC/
Ctrl# 60937

Enclosure