Did a Florida fair authority's admission tickets remain exempt after the 1994 governmental-event amendment?

Subject

Admission Tickets - Fair

Plain-English summary

The specific fair authority remained exempt from sales tax on its direct admission sales because section 616.260 provided a separate, specific exemption for its transactions. The Department said that exemption had survived the 1993 legislative review and was not superseded by section 212.08(13).

The exemption covered admissions sold by the fair authority or its agents to the fair and other events solely sponsored by the authority on the fairgrounds. Admissions sold by independent ride, attraction, show, or event operators generally remained taxable unless the operator qualified as a nonprofit under the cited rule.

The Department also explained that a July 1, 1994 amendment narrowed the general governmental-event exemption to participation and sponsorship fees for structured athletic or recreational programs. A fair was not such a program, so other governmental fairs without this fair's specific section 616.260 exemption had to collect tax on grounds admissions and tickets to rides, shows, and similar events.

What this means for you

Fair-admission treatment depended on the exact statutory authority, who sponsored the event, and who sold the ticket. Governmental status alone no longer exempted ordinary fair admissions after the 1994 amendment.

Common questions

Were this fair's grounds admissions exempt? Yes, when sold by the fair authority or its agents for authority-sponsored events.

Were independent midway or show operators exempt? Generally no, unless they qualified as nonprofit entities under the cited rule.

Did every governmental fair retain an exemption? No. The Department said other governmental fairs became taxable after July 1, 1994 unless another specific exemption applied.

Citations and references

• Fla. Stat. §§ 212.04(2)(a)5., 212.08(13), 616.251, 616.255, 616.260, and 213.22
• Fla. Admin. Code r. 12A-1.005(3)(d), (3)(f)1., and (3)(g)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 94A-064

Original ruling text

Title:

Admission Tickets - Fair

Dec 08, 1994

Re: TAA 94A-064
Whether admissions charged by the Fair are subject to sales
tax after a statutory amendment.
Sections 212.04(2)(a)5., 212.08(13), 616.251, 616.255,
616.260, F.S.
Rule 12A-1.005(3)(d), (3)(g), and (3)(f)1., F.A.C.

Dear :

This is a response, styled a Technical Assistance Advisement, to
your letter dated September 8, 1994, in which you asked whether
the sales of admission tickets for entrance to the XXXX Fair are
subject to sales tax after the amendment of subparagraph
(2)(a)5. of s. 212.04, F.S., which, as you state, now
"...exempts only participation fees or sponsorship fees imposed
by a governmental entity...for an athletic or recreational
program." You then explain that "[t]his language differs from
the previous language which exempted admissions to athletic or
other events sponsored by governmental entities."

You also state that the XXXX Fair (herein Fair) "... has never
been required to collect admissions taxes on the admissions fees
charged for entry to the Fair because of the specific exemptions
contained in the Florida Statutes and the Florida Administrative
Code."

You enumerate these exemptions as found in: s. 212.04(2)(a)5.,
F.S., which before its amendment exempted admissions to athletic
or other events sponsored by governmental entities; Rule 12A1.005(3)(d), F.A.C., which describes the exemption of admissions
to county, state and regional fairs; and, s. 616.260, F.S.,
which you describe as creating "...an exemption from all
revenues of the [Fair]," an exemption which you contend has not
been superseded by s. 212.08(13), Florida Statutes.

Department Response

The Department agrees that s. 616.260, F.S., exempts the Fair
from sales tax on all transactions, including admissions, and
that this exception is not superseded by s. 212.08(13), Florida
Statutes. The Department takes this position because the
exemption in s. 616.260, F.S., is a specific exemption, and the
statute, together with all other statutes within Chapter 616,
F.S., were reviewed but not repealed as provided in s. 44,
Chapter 93-168, Laws of Florida.

The Department also agrees that Fair is a governmental entity as
provided in s. 616.251, F.S., and that Fair has not been
obligated to collect sales tax on admissions it sells directly
to those who seek entrance to the Fair because of the other
exemption formerly granted by the operation of s.
212.04(2)(a)5., F.S., which exempted admissions to athletic or
other events sponsored by a governmental entity.

This statute is interpreted by Rule 12A-1.005(3)(f)1., Florida
Administrative Code. This statute provided an exemption to the
direct sale by Fair of admissions to Fair attendees for rides,
shows, and other similar events.

You are alerted that s. 616.260, F.S., is construed by the
Department to provide an exemption to admissions sold by the
Fair Authority, or its agents, to events held on the
Fairgrounds, such as the Fair, Christmas shows, concerts, and
other such events which are solely sponsored by the Fair
Authority.

However, admissions to rides, attractions, shows, and the like
sold by independent operators or promoters held on the
Fairgrounds are taxable except when such independent operators
or promoters are not-for-profit entities as described in Rule
12A-1.005(3)(g), Florida Administrative Code.

While conceding that s. 616.260, F.S., continues to provide the
Fair a specific exemption from sales and use tax, as explained
above, the recent amendment of subparagraph (2)(a)5., of s.

212.04, F.S., which you cite in your letter, removes the
exemption from admission tax granted governmental entities who
sponsor athletic or other events as also described above. Thus,
effective July 1, 1994, the change in subparagraph (2)(a)5. of
s. 212.04, F.S., narrows the exemption expressed in the previous
language of this subparagraph. Instead of providing an
exemption for admissions levied by sponsoring governmental
entities to "athletic or other events," the amendment exempts
only "participation and sponsorship fees" levied by a
governmental entity which sponsors, by itself or in conjunction
with a qualifying non-profit entity, an "athletic or
recreational program," which the Department views as requiring a
"structured athletic or recreational program." Thus,
sponsorship by a governmental entity of an event other than a
"structured athletic or recreational program" is taxable. The
amendatory language also nullifies the exemption described in
Rule 12A-1.005(3)(d), Florida Administrative Code.

The Department takes the position that a fair, including the
Fair described in s. 616.255, F.S., is not a "structured
athletic or recreational event," as these terms now appear in
subparagraph (2)(a)5. of s. 212.04, Florida Statutes.

Consequently, effective July 1, 1994, any fair as defined in
Chapter 616, F.S., other than the Fair, because it is exempt
under provisions of s. 616.260, F.S., if sponsored or operated
by a governmental entity, is obligated to collect sales tax on
admissions it sells directly to its attendees both for entry to
the grounds, as well as, admission to the rides, shows and other
events of Fair.

This response constitutes a Technical Assistance Advisement
under s. 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 s. 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 advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response and your request are
public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
the identification of the taxpayer must be deleted by the
Department before disclosure. In an effort to protect the
confidentiality of such information, we request you notify the
undersigned in writing within 15 days of any deletions you wish
made to the request or the response.

Sincerely,

Robert G. Parsons
Tax Law Specialist

Ctrl #17520