May a Florida senior-living community that is licensed in part under chapter 429 buy and furnish meals tax-free to all of its residents?

Plain-English summary

The Florida Department of Revenue ruled that a senior-living community qualified as a "home for the aged" because part of the facility was licensed under chapter 429, Florida Statutes. The community included assisted-living, memory-care, and independent-living units, but section 212.08(7)(i) requires licensing only "in part or in whole."

That meant meals furnished to all community residents were exempt—not only meals for residents in the licensed assisted-living and memory-care units. The exemption covered meals included in the standard residency plans and extra meals sold to residents.

The operator could buy meals, or otherwise taxable meal components, without sales tax by giving the seller Form DR-97 and identifying the use as meals furnished to residents of a home for the aged. Meals sold to guests and other nonresidents did not qualify under this exemption. Taxable ingredients incorporated into meals for resale to those customers could instead be purchased using the resale rules.

What this means for you

Senior-living community operators

A mixed community may qualify as a home for the aged even when only part of it is licensed under chapter 429. In this ruling, the exemption followed the resident's status and the use of the meal, not whether the resident lived in a licensed wing.

Dining and purchasing teams

Separate resident meals from guest and other nonresident sales. Resident meals were exempt, while meals for nonresidents and guests were not covered by section 212.08(7)(i). Document exempt purchases with the use-based certificate described in the ruling.

Accountants and tax professionals

Confirm the facility's chapter 429 license and maintain records supporting the destination of meals and ingredients. The ruling discusses both Form DR-97 for exempt-use purchases and resale documentation for taxable items incorporated into meals sold to nonresidents.

Common questions

Q: Must every unit be licensed under chapter 429?
A: No. The statute's definition covers a facility licensed in part or in whole, and the Department treated this partly licensed community as a home for the aged.

Q: Are meals for independent-living residents exempt too?
A: Yes. The Department concluded that meals furnished to all residents of the qualifying community were exempt.

Q: What about extra meals residents buy beyond their meal plan?
A: They were exempt because the purchasers were still residents of a home for the aged.

Q: Are guest or employee meals exempt under the same rule?
A: No. The ruling says the homes-for-the-aged exemption does not cover meals for nonresidents and guests.

Q: How does the operator buy meal components tax-free?
A: For resident meals, the ruling directs the operator to provide Form DR-97 citing the exempt use. Taxable components bought for meals resold to nonresidents may qualify under the resale-certificate rules.

Citations and references

• Fla. Stat. §§ 212.02(15)(a), 212.05, 212.07(1)(b), 212.08(1), and 212.08(7)(i)
• Fla. Stat. § 213.22
• Fla. Admin. Code rr. 12A-1.0115, 12A-1.038, and 12A-1.039
• Form DR-97, Suggested Format for Blanket Exemption Certificate Based on Property's Use

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 19A-019

Original ruling text

Florida Department of Revenue
Technical Assistance and Dispute Resolution

5050 West Tennessee Street Tallahassee FL 32399

Jim Zingale
Executive Director

floridarevenue.com

TAX: Sales and Use Tax
TAA NUMBER: 19A-019
Subject: Home for the Aged – Meals
STATUTE CITE(S): Section 212.08, Florida Statutes (F.S.)
RULE CITE: Rules 12A-1.0115, and 12A-1.038, Florida Administrative Code (F.A.C.)
QUESTION:
Does the Taxpayer qualify as a “home for the aged” as that phrase is used within s. 212.08(7)(i),
F.S?
ANSWER:
According to the license issued by the Florida Agency for Health Care Administration Division of
Health Quality Assurance the Taxpayer is licensed in part under chapter 429, F.S., and is
therefore a “home for the aged,” as defined in s. 212.08(7)(i), F.S.
QUESTION:
Does the Community collectively qualify as a “facility” as that term is used within s. 212.08(7)(i),
F.S?
ANSWER:
The term “facility” is not defined by s. 212.08(7)(i), F.S. The term is used within s. 212.08(7)(i),
F.S., as a general noun when referencing a “home for the aged.” The definition requires that
the “facility” to be licensed “in part or in whole” under chapter 429. As provided in the
response above, the Taxpayer’s facility qualifies as a “home for the aged,” as defined in s.
212.08(7)(i), F.S.
QUESTION:
Is the Taxpayer able to purchase exempt from Florida sales and use taxes the meals that it
provides to residents of the Community as part of the standard residency plan based upon the
exemption contained in s. 212.08(7)(i), F.S?

XXXX
August 28, 2019,
Florida Department of Revenue
Page 2

ANSWER:
The exemption provided in s. 212.08(7)(i), F.S., and Rule 12A-1.0115, F.A.C., is based upon the
account of use of the tangible personal property. The meals are exempt because they are
“furnished to residents of homes for the aged.” The Taxpayer may purchase the meals, or
taxable components of the meals, exempt from sales tax by extending a copy of Form DR-97,
"The Suggested Format for Blanket Exemption Certificate Based on Property's Use." The
Taxpayer should cite the property’s exempt use to be “meals furnished to residents of a home
for the aged as provided in section 212.08(7)(i), F.S., and Rule 12A-1.0115, F.A.C.”
QUESTION:
Are the extra meals sold to the Community’s residents exempt from sales tax pursuant to s.
212.08(7)(i), F.S?
The exemption provided in s. 212.08(7)(i), F.S., includes meals furnished to all “residents of a
home for the aged.” Therefore, meals furnished to all of the “residents” are exempt from sales
tax.
August 28, 2019,
XX
Subject: Technical Assistance Advisement
STATUTE CITE(S): Section 212.08, Florida Statutes (F.S.)
RULE CITE: Rules 12A-1.0115, and 12A-1.038, Florida Administrative Code (F.A.C.)
XX (the Taxpayer)
D/B/A XX
EIN: XX
Dear XX:
This is in response to your letter dated April 1, 2019, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to section 213.22, F.S., and Rule Chapter 1211, F.A.C., concerning the Owner Direct Purchase Program that is the subject of your request.
An examination of your letter has established you have complied with the statutory and
regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting
your request for a TAA.

XXXX
August 28, 2019,
Florida Department of Revenue
Page 3

Facts and Requested Advisement
Your letter provides the following in part:
[The Taxpayer] is a for-profit limited liability company with its primary Florida business
location at XX. At this address, [the Taxpayer] operates a senior living community (the
“Community”). Living units available at the Community include those for independent
living, assisted living, and memory care.
The Community is licensed in part under Chapter 429, Florida Statutes. More
specifically, the Community is comprised of 140 total units. Of these, 78 units of the
Community are licensed under Chapter 429 and are dedicated to assisted living and
memory care. The remaining 62 units are dedicated to independent living and are not
licensed under Chapter 429. . . .
While the assisted living, independent living, and memory care units are separately
arranged and situated, all units are a part of the Community. Amenities, such as
restaurant-style dining, fitness center, etc., are made available to all residents. One
unified staff is responsible for maintenance of the Community, the care of its residents,
the security thereof, etc.
Among other things, [the Taxpayer] provides meals to residents of the Community. [The
meal ingredients] are, in the first instance, purchased by [the Taxpayer] and are
subsequently provided to the residents. At present, [the Taxpayer] is self-assessing and
remitting Florida use tax on the cost of the food.
Assisted living and memory care residents of the Community are provided three meals
(3) meals per day as part of the standard residency plan. Independent living residents
are provided with a continental breakfast and one (1) additional meal per day. Further,
residents of the Community, their guests, and the Community employees are able to
purchase additional meals above and beyond the number of meals that are provided as
part of the standard residency plan. XX is currently remitting Florida sales tax on sales of
these additional meals when purchased by the independent living residents, guests, and
Community employees.

In an e-mail dated July 29, 2019, you confirmed that the Taxpayer “prepare[s] all meals from
scratch. The only prepared meals are emergency food supplies.”

Documentation included with your request included the following:

XXXX
August 28, 2019,
Florida Department of Revenue
Page 4

•

•

A license issued by the Florida Agency for Health Care Administration Division of Health
Quality Assurance. The license has an effective date of October 2, 2018, and confirms
that the Taxpayer “has complied with Chapter 429, Part 1 . . . and is authorized to
operate . . . .”
A copy of Technical Assistance Advisement 93A-008.

You provided the following in response to the Department’s request for additional
documentation:
•
•
•

A sample resident invoice.
A sample copy of an Independent Living Residency Agreement Contract.
A sample copy of an Assisted Living Residency Agreement Contract.

The Assisted Living Residency Agreement Contract provides the following in part:
You have applied for residence and services at the Community, and the Community
has accepted your application. This Agreement describes the services that will be
provided to you and the other legal obligations we will assume. This Agreement sets
forth your financial and non-financial legal obligations.

II. SERVICES
The Resident will be entitled to the following services which are included in the
Monthly Accommodation Fee, subject to the terms of this Agreement. The Resident
may also receive Care Level Services as described in Section III and other additional
services as described in Section III.I. which are subject to additional fees as set forth
in the Schedule of Fees.
A. Care Services. Included in your Monthly Accommodation Fee is up to thirty (30)
minutes per day in traditional assisted living for one resident and all-inclusive personal
care in memory care including assistance with activities of daily living (such as bathing,
dressing, grooming, oral hygiene, toileting, ambulating, transferring and dining) and
medication management for one resident. . . .
B. Meals.

XXXX
August 28, 2019,
Florida Department of Revenue
Page 5

1. Dining Room. Three nutritionally well-balanced meals are served restaurant style daily
   in the Community dining room and between-meal snacks are provided daily. . . .
2. Tray Service. We will provide tray service to your Apartment during a temporary
   illness at no extra charge. . . .
3. Guest Meals. We encourage family and friends to dine with residents. . . . You will be
   charged an extra fee for guest meals as listed in the Schedule of Fees.

Guest Meals:
Breakfast (per meal) $6.00
Lunch (per meal) $9.00
Dinner (per meal) $12.00
Children Menu (ages 10 and under) (per meal) ½ of regular guest price

The Independent Living Residency Agreement Contract provides the following in part:
LEASE AGREEMENT
. . . In consideration of the mutual undertakings, covenants and acts to be performed
hereunder, Lessor and Lessee agree as follows:
. . . 3. Fees. The following fees shall be paid under this Agreement:
. . . 3.2 Monthly Rental Fee. . . . The Monthly Rental Fee includes the Included Services
described in Section 4 as the same may change from time to time. The Included Services
are an integral part of residency at XX at XX and are designed for the benefit of all
residents. There will be no reduction in the Monthly Rental Fee if you elect to not avail
yourself of any of the Included Services.
. . . 4. Included Services. During the term of this Agreement, the following services (the
“Included Services”) are included in your Monthly Rental Fee:
4.1 Continental breakfast daily in the XX Dining Room per Resident.
4.2 Breakfast, lunch or dinner daily in the XX Dining Room per Resident up to a total of
thirty (30) meals (in addition to continental breakfast) per month per Resident.

XXXX
August 28, 2019,
Florida Department of Revenue
Page 6

Requested Advisement
You request an advisement that addresses the following:
(1) Whether [the Taxpayer] qualifies as a “home for the aged” as that phrase is used
within Fla. Stat. § 212.08(7)(i).
(2) Whether [the Taxpayer’s] Community collectively qualifies as a “facility” as that term
is used within Fla. Stat. § 212.08(7)(i).
(3) Whether [the Taxpayer] is able to purchase exempt from Florida sales and use taxes
the meals that it provides to residents of the Community as part of the standard
residency plan based upon the exemption contained in Fla. Stat. § 212.08(7)(i).
(4) Whether the extra meals sold to the Community’s residents are exempt from sales
tax pursuant to Fla. Stat. § 212.08(7)(i).
Law and Discussion
Section 212.05, F.S., provides that the sale of tangible personal property is subject to tax. All
sales of tangible personal property in the State of Florida are subject to tax, unless specifically
exempt by Chapter 212, F.S. The term "sale" is defined in s. 212.02(15)(a), F.S., to mean "[a]ny
transfer of title or possession, or both ... of tangible personal property for a consideration." All
sales of tangible personal property in the State of Florida are subject to tax, unless specifically
exempt by Chapter 212, F.S.
Section 212.08, F.S, provides several specific exemptions of items of tangible personal property
for which the “sale at retail, the rental, the use, the consumption, the distribution, and the
storage to be used or consumed in [Florida] . . . .” Section 212.08(7), F.S., provides several
“miscellaneous exemptions.” The miscellaneous exemptions do not "inure to any transaction
that is otherwise taxable . . . unless the entity [claiming the exemption] has obtained a sales tax
exemption certificate from the Department or the entity obtains or provides other
documentation as required by the Department."
The subject exemption in this case is s. 212.08(7)(i), F.S. Prior to June 9, 1995, the exemption
provided in s. 212.08(7)(i), F.S., was limited to charges for rentals and meals for “patients and
inmates of any hospital or other physical plant or facility designed and operated primarily for
the care of persons who are ill, aged, infirm, mentally or physically incapacitated, or otherwise
dependent on special care or attention.”
Effective June 9, 1995, 95-232 Laws of Florida, amended the exemption and provided that
“[r]esidents of a home for the aged are exempt from payment of taxes on meals provided

XXXX
August 28, 2019,
Florida Department of Revenue
Page 7

through the facility.” The amendment also provided the definition of “a home for the aged” to
include “a facility that is licensed or certified in part or in whole under chapter 400 . . . .” The
exemption was amended again in 2006, by Chapter 2006-197, Laws of Florida, to provide that
“a home for the aged” includes a facility “licensed or certified in part or in whole under chapter
429.” Rule 12A-1.0115(11)(a), F.A.C., addresses the subject exemption and provides that
“[m]eals furnished to residents of homes for the aged, as defined in Section 212.08(7)(i), F.S.,
are exempt.”
The exemption provided in s. 212.08(7)(i), F.S., and Rule 12A-1.0115, F.A.C., is based upon the
account of use of the tangible personal property (the meals). Rule 12A-1.038(5)(b), F.A.C.,
provides that a person who is purchasing, renting, leasing, or licensing tangible personal
property or services that qualify for an exemption from tax imposed under Chapter 212, F.S.,
based on the use of the property or service, must extend an exemption certificate to a selling
dealer indicating the specific exemption that is applicable to the purchase, in lieu of paying
sales tax to the dealer. While the Department does not provide a blanket certificate of
exemption form, Rule 12A-1.038(5)(d), F.A.C., provides a suggested format for the exemption
certificate to be presented to the selling dealer. The Department also provides Form DR-97,
"The Suggested Format for Blanket Exemption Certificate Based on Property's Use."
Section 212.07(1)(b), F.S., provides an exemption from tax for sales of tangible personal
property made for resale. Sales of tangible personal property to a dealer when such property
will be resold to an ultimate customer are exempt from sales tax. Rule 12A-1.039, F.A.C.,
provides guidance regarding sales for resale under Chapter 212, F.S., and provides that a sale
for resale is exempt from tax when the sale is of tangible personal property sold to an active
registered dealer when such property will be resold to the dealer's customers. A dealer who
makes tax-exempt sales for resale is required to document the exempt sale by choosing one of
the following three methods: 1) obtain a copy of the customer's annual resale certificate; 2)
obtain a transaction resale authorization number from the Department; or 3) obtain a vendor
resale authorization number from the Department for regular customers who have previously
submitted documentation.
Determination
Whether [the Taxpayer] qualifies as a “home for the aged” as that phrase is used within
Fla. Stat. § 212.08(7)(i).
Response: According to the license issued by the Florida Agency for Health Care Administration
Division of Health Quality Assurance the Taxpayer is licensed in part under chapter 429, F.S.,
and is therefore a “home for the aged,” as defined in s. 212.08(7)(i), F.S.
Whether [the Taxpayer’s] Community collectively qualifies as a “facility” as that term is
used within Fla. Stat. § 212.08(7)(i).

XXXX
August 28, 2019,
Florida Department of Revenue
Page 8

Response: The term “facility” is not defined by s. 212.08(7)(i), F.S. The term is used within s.
212.08(7)(i), F.S., as a general noun when referencing a “home for the aged.” The definition
requires that the “facility” to be licensed “in part or in whole” under chapter 429. As provided
in the response above, the Taxpayer’s facility qualifies as a “home for the aged,” as defined in s.
212.08(7)(i), F.S.
Whether [the Taxpayer] is able to purchase exempt from Florida sales and use taxes the
meals that it provides to residents of the Community as part of the standard residency
plan based upon the exemption contained in Fla. Stat. § 212.08(7)(i).
The exemption provided in s. 212.08(7)(i), F.S., and Rule 12A-1.0115, F.A.C., is based upon the
account of use of the tangible personal property. The meals are exempt because they are
“furnished to residents of homes for the aged.” The Taxpayer may purchase the meals, or
taxable components of the meals, exempt from sales tax by extending a copy of Form DR-97,
"The Suggested Format for Blanket Exemption Certificate Based on Property's Use." The
Taxpayer should cite the property’s exempt use to be “meals furnished to residents of a home
for the aged as provided in section 212.08(7)(i), F.S., and Rule 12A-1.0115, F.A.C.”
(4) Whether the extra meals sold to the Community’s residents are exempt from sales
tax pursuant to Fla. Stat. § 212.08(7)(i).
While prior to June 9, 1995, the exemption was limited to meals provided to “patients and
inmates,” the current version includes meals furnished to all “residents of a home for the
aged.” Therefore, meals furnished to all of the “residents” are exempt from sales tax.
The charge made for meals to non-residents and guests is not exempt pursuant to s.
212.08(7)(i), F.S., as they are not "residents" of a home for the aged. Most of the food items
purchased by the Taxpayer will likely not be subject to sales tax, due to the exemption for
general groceries provided by Section 212. 08(1), F.S. However, there are certain grocery items
that do not qualify for the exemption provided in s. 212.08(1), F.S. The purchase of taxable
items that become a part of a prepared meal, for resale to non-residents and guests, may be
purchased exempt through the use of a resale certificate, consistent with the provisions of Rule
12A-1.039, F.A.C.
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

XXXX
August 28, 2019,
Florida Department of Revenue
Page 9

advice is based, may subject similar future transactions to a different treatment than that
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 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,

Brinton Hevey
Brinton Hevey
Tax Law Specialist
Technical Assistance and Dispute Resolution
Record ID: 191034