Which chamber-of-commerce event receipts were taxable, including admissions, sponsorships, space rentals, educational programs, and event purchases?

Plain-English summary

Florida treated each chamber-event receipt according to what the attendee, exhibitor, sponsor, or chamber actually received.

Cash sponsorship donations were not taxable. Admissions tied to amusement, recreation, golf, or casino night were taxable, while business seminars, educational dinners without entertainment, leadership training, and educational alumni programs were not. Trade-show participation fees connected to taxable spectator admissions could be exempt, but shopping-mall exhibit-space rentals were taxable. The chamber also remained the taxable consumer of many purchases such as catering, equipment rentals, security services, prizes, and printed program materials.

What this means for you

Nonprofit or chamber sponsorship did not create a blanket exemption. Event purpose and each separate charge controlled.

Common questions

Q: Were cash donations from sponsors taxable?
A: No.

Q: Were golf and casino-night admissions taxable?
A: Yes.

Q: Were educational meetings and leadership programs taxable admissions?
A: No, unless entertainment changed the event's character.

Q: Did tax collected on admission cover the chamber's event purchases?
A: No. Taxable rentals, security services, catering, and other purchases were separate transactions.

Citations and references

• Fla. Stat. § 212.02(1) — admissions
• Fla. Stat. § 212.031(1)(a), (2)(a), (3), and (5) — real-property rentals and trade-show space
• Fla. Stat. § 212.04 — tax on admissions
• Fla. Admin. Code r. 12A-1.005(4)(k) — participation charges connected to taxable admissions
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 95A-003

Original ruling text

Title:

Taxability of County Sponsored Events

Jan 19, 1995

Re: TAA 95A-003
Whether sales tax is applicable to various transactions in
connection with events sponsored and presented by a county
chamber of commerce
Sections 212.02(1), 212.031(1)(a), (2)(a), (3), and (5),
212.04, F.S.
Rule 12A-1.005(4)(k), F.A.C.

Dear :

This is a response, styled a Technical Assistance Advisement, to
your letter dated July 8, 1994, in which you ask whether sales
or use tax should be charged by the XXXXX (herein Chamber), on
various transactions which occur during the several events
sponsored and presented by the Chamber. You describe 10 events,
numbered 1 through 10, each of which is explained in your letter
and about each of which you ask multiple questions. The
Department has preserved the numbered and alphabetic
identification which you use as to each of the 10 events, but
has paraphrased both your questions and the descriptions you
have provided of the events. After each question the Department
will provide its response.

Event 1. This event requires the purchase of a ticket for
admission. The event features trade shows, arts and craft
displays, and food and drink concessions, midway rides, and
similar activities. You describe the "one-price ticket" as that
which allows the purchaser to enter the grounds and to
participate in some but not all of the activities.

Question A.

Is the Chamber obligated to collect sales tax on

funds donated by sponsors of the event?

Department response: Sales tax is not applicable to the donation

of money to the Chamber by sponsors of the event.

Question B.

Is the Chamber obligated to collect sales tax

from exhibitors in a trade show for the rental of space by such
exhibitors within an exhibition hall owned by the county which
is leased to the Chamber?

Department response: Sales tax is not applicable, as provided in
s. 212.031(5), F.S., to the sublease of space within "...a
convention, exhibition hall, or auditorium, whether publicly of
privately owned...." for the purpose of a convention or trade
show. However, the statute requires the prime lessor, which in
this instance, is the Chamber, to pay the tax to the lessor.
Question C. Is the Chamber obligated to collect sales tax
from fees paid to the Chamber by classic car owners, beauty
pageant participants, and by hot-air balloonists. You state
that the Chamber will collect sales tax on the admissions
charged attendees of these events.

Department response: As provided in Rule 12A-1.005(4)(k),
F.A.C., such participation fees are exempt from tax in the
instance when "...[c]harges made for the privilege of entering
or engaging in any kind of activity for which a taxable
admission charge is made to spectators."

Question D.

Is the Chamber obligated to "...pay a use tax on

site and support costs (rental of temporary fencing, sound
equipment, staging, utilities, security services,
products/services provided to festival volunteer labor, etc.)
when the Chamber has already paid sales tax on the "pay-one
price" admission.

Department response: The "site and support costs" if taxable,
are taxable to the Chamber because these are transactions
separate from the admission charges upon which the Chamber has
not paid tax but rather on which the Chamber has collected tax.
The tax on admissions is determined by the provisions of s.
212.04, Florida Statutes. The tax on the rental of tangible
personal property, and on security services is imposed by s.
212.05, Florida Statutes. The taxes at issue are imposed by
different statutes.

Thus, the Chamber collects tax on admissions as imposed by s.
212.04, F.S., from attendees who pay such tax to the Chamber.
The Chamber is not a consumer of the admission charge, but is a
consumer of the tangible personal property it rents and the
security services it purchases, which rentals and services are
taxable by operation of s. 212.05, Florida Statutes. The
Chamber is a consumer because it does not resell either the
rentals, nor the security services. If the Chamber were to avoid
the payment of tax on such rentals and services it would have to
be an exempt organization.

Event 2. (Business Exposition/Table Tops) Exhibit space in a
shopping mall is donated to the Chamber. The Chamber, in turn,
rents such space to various businesses in which products are
displayed but from which no sales are made.

Question A.

Is the Chamber obligated to collect sales tax

from the various businesses which rent such donated space from
the Chamber, irrespective whether the rent amount equals or
exceeds the cost to the Chamber?

Department response: Sales tax is applicable to these leases or
licenses to use real property, irrespective of the Chamber's
cost, because under these facts the Chamber is in the business
of leasing or granting a license to use real property. This
business activity is subject to tax as expressed in s.
212.013(1)(a), Florida Statutes. Another statute, s.
212.031(2)(a), F.S., states that "[t]he tenant or person
actually occupying, using, or entitled to the use of any
property from which the rental or license fee is subject to
taxation under this section shall pay the tax to his immediate
landlord or other person granting the right to such tenant or
person to occupy or use such real property." Section
212.031(3), F.S., states in part that the tax is "...due and
payable at the time of the receipt of such rental or license fee
payment by the lessor or other person who receives the rental or
payment."

Event 3. (Business After Hours). Chamber charges a fee to
attendees of meetings, styled "business after hours," held by

the Chamber for members only for the purpose of general
discussion and to exchange information, or to hear the remarks
of a designated speaker.

Question A.

Is the Chamber obligated to collect tax on the

payment made by attendees of the event? Does the taxability
depend on the nature of the meeting?

Department response: The payment made to the Chamber by
attendees to the events styled "business after hours" is not
subject to sales tax in that these events are not classed as
those offering amusement, sport, or recreation to the attendees.
Section 212.02(1), F.S., defines the term "admissions," in part,
as "...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...."

The Department finds that your description of the event,
"business after hours," is not that which describes either an
amusement, or sport, or a place of recreation. Rather, the
Department asserts that such an event is more akin to the
presentation of a seminar, or a meeting for an educational
purpose. If any food is served during these events the sales tax
must be paid on the price which is charged the Chamber by the
caterer or another who prepares the food for the event.

Thus, the chamber will have paid the tax on the meal and no tax
is applicable to the charge made on the attendees with respect
to such food.

Question B.

If the function is held in a business location at

which food is served and the cost of the food is paid by
attendees, must sales tax be collected by the Chamber on the
admissions.

Department response: Again, assuming that the nature of the
meeting is one similar to a seminar, then there is no tax on the
admission. Food which is served at the event is taxable to the
person paying for such food. If the Chamber pays the caterer or
preparer, the sales tax is payable on the sales price of such
food.

Question C.

If the members, as a group, make the payment to

the food preparer, is the charge for admission taxable?
Department response: The purchase of the food from the preparer
is subject to tax. The admission is not taxable if the nature
of the event is the same as that descriptive of the meeting
styled "business after hours." With respect to your other
questions which are not alphabetically identified, the
Department states that the frequency of the meetings does not
determine the taxability of an admission. If the event is
characterized as an amusement, sport, or recreation then the
payment made in way of an admission to such event will be
subject to tax unless otherwise exempt. As to the standard for
determining the content of the event for purpose of classifying
it as an amusement, sport or recreation, the Department is
guided by the common sense meaning of the words.

Event 4. (50/50). An amount of money is accumulated through
donations to the Chamber. A drawing is held which determines
the winning ticket. The money accumulated is divided between
the Chamber and the holder of the winning ticket.

Question A.

Is the Chamber obligated to collect sales tax on

the sale of the tickets to individual Chamber members?

Department response: The sale of the tickets to individual
members solely for the purpose of conducting a lottery is not
subject to sales tax. The purchase by the Chamber of the stock
of tickets is taxable.

Event 5. (Chamber Salute) At certain events the Chamber will
offer, free of charge, food and drinks to members and visitors.
The Chamber purchases the food and drinks but the Chamber
receives from various sponsors an equivalent amount of
donations.

Question A.

Is the Chamber obligated to collect sales tax on

the donated money which is then used by the Chamber to buy the
food and drinks?

Department response: The transfer of money to the Chamber as a

donation is not subject to sales tax.

Question B.

Is the Chamber obligated to pay tax on the

purchase of food and drinks served free to members and visitors
during the event?

Department response: The Department views the Chamber as the
consumer of the food and drinks because the Chamber does not
resell the food and drinks. Thus, if the food is prepared by a
caterer or someone acting in such a capacity, the charge made by
such preparer is subject to tax.

Event 6. (Golf Tournament) The Chamber charges an admission to
its members and non-members for the right to attend a certain
annual event held at a golf course. One feature of this event
is the privilege to play a round of golf.

Question A.

Is the Chamber obligated to collect tax on the

admissions if the golf course provides the course at no charge
to the Chamber?

Department response: Section 212.04(1)(a), F.S., imposes sales
tax on every persons "...who sells or receives anything of value
by way of admissions." As cited above, Rule 12A-1.005, F.A.C.,
interprets the statute. Thus, if this event is held at a golf
course, and the playing of golf is the attraction, then the
Chamber is obligated to collect sales tax on the price of the
admissions it sells for such a purpose.

Question B.

Is the Chamber obligated to collect the tax on

admissions to the event described above if the Chamber, as you
describe in your letter, "...has had to rent the facility."

Department response: Without more information it is the
Department's position that if the Chamber "has had to rent the
facility," meaning the golf course, the agreement would be
considered a license to use both real and tangible personal
property. In such a circumstance, the Chamber would be
obligated to pay the tax on the fee charged the Chamber by the
operator of the course as provided in ss. 212.031, and 212.05,
Florida Statutes.

The Chamber, as licensee/licensor of the course, would be
obligated to collect and remit the tax on admissions paid by the
members and non-members.

Question C.

Is any obligation of the Chamber, either to pay

or to collect tax, affected by the profitability of the event?

Department response: The imposition of the tax on the
transactions described above is not affected by the
profitability of the event.

Event 7. (Annual Dinner) The Chamber charges an admission to
attendees of an annual dinner held for an educational purpose
which often will feature a guest speaker. The Chamber receives
donations of money from members to defray the costs of staging
this event.

Question A.

Is the Chamber obligated to collect sales tax on

the admissions.

Department response: There is no sales tax on events of an
educational character. Thus, the Chamber is not obligated to
collect sales tax on admissions sold to attend this annual
educational event. The Chamber is obligated to pay sales tax to
the caterer or other person who charges the Chamber for the food
and drinks served at this annual event.

Question B.

Is the Chamber obligated to collect sales tax on

a admissions to the event if there is no quest speaker?

Department response: If the event is one of an educational
character the admission charge is not subject to tax
irrespective of the presence of a quest speaker.

Question C.

Is the Chamber obligated to collect sales tax on

admissions to this event if entertainment is provided to the
attendees?

Department response: Admission to an event which provides
entertainment to its attendees is an admission as defined in s.

212.02(1), Florida Statutes. Any charge made by the Chamber to
any attendee would be taxable, because s. 212.02(1), F.S.,
defines admission, in general, as the charge for admitting any
person to a place of amusement, sport, or recreation. The
provision of entertainment at this annual function by the
Chamber would create the obligation to collect sales tax on the
price of admission.

Question D.

Is the Chamber obligated to collect sales tax on

donations made directly to the Chamber?

Department response: There is no sales tax on donations of money
to the Chamber.

Event 8. (Casino Night) The Chamber will collect a fee from
attendees of an event styled "Casino Night." You describe the
use of "play money" at this event and you further state that the
fee will allow each attendee admittance to the event, and the
consumption of food and a certain amount of beverage. You state
that admittees may purchase other drinks from a "cash bar" which
will be operated at the event.

Question A.

Is the Chamber obligated to collect tax on the

fee paid the Chamber by attendees.

Department response: The fee paid to the Chamber by each
attendee is subject to tax as an admission because this event is
in the Department's view a place of amusement, sport, or
recreation. As explained in responses to previous questions,
such activities are elements within the definition of the term
"admission."

Question B.

Is the Chamber obligated to collect sales tax

from businesses who might sponsor this event?

Department response: The Chamber is not obligated to collect tax
on donations of a monetary character, nor on any food and drinks
which may be donated to the Chamber. However, the donor may be
liable for use tax on tangible personal property donated to the
Chamber. As explained above, the charge made on the Chamber by
the vendor of prepared food and drinks would be subject to sales

tax.

Question C.

Is the Chamber obligated to pay sales tax on the

prizes which are donated to the Chamber for this event?

Department response: Again, the Chamber has no tax liability as
to the receipt of donated money or goods, including prizes.
Also, as noted above, the donor may be liable for use tax on
tangible personal property donated to the Chamber. The Chamber
would pay tax on any purchases it might make of such prizes.

Event 9. (Leadership XXXXX) The Chamber's charitable
foundation, which is an entity qualified under provisions of
section 501(c)(3), Internal Revenue Code, administers an annual
"leadership" training program. The purpose of this program is
to further business acquaintances and business contacts.

Question A.

Is the Chamber, or its foundation, obligated to

collect sales tax on the participation fees paid by attendees of
this program?

Department response: It is the Department's position that the
function of this program has an education purpose. Thus, the
participation fee paid to attend this program is not subject to
sales tax, irrespective whether the foundation, or the Chamber
administers the program.

Question B.

Is the Chamber obligated to collect sales tax on

fees paid by graduates of this program to join a Chamber
sponsored leadership alumni organization?

Department response: The Chamber is not obligated to collect
sales tax on fees paid to join a leadership alumni organization
if the purpose of the organization is of an educational
character. As was stated previously, the Florida law imposes
sales tax on fees paid in connection with amusement, sport, or
recreation.

Event 10. (Drug-Free Workplace) The Chamber's charitable
foundation administers an event which you describe as a "drugfree workplace program." The purpose of this program is to

educate Chamber members.

Question A.

Is the Chamber obligated to collect sales tax on

the sale of materials (drug-free manuals and the like) to
program participants.

Department response: The sale of the materials you describe is
subject to sales tax and on such sales the Chamber is obligated
to collect sales tax. Such sales are sales of tangible personal
property which by operation of s. 212.05, F.S., are subject to
tax.

Question B.

Is the Chamber obligated to collect tax on the

money donated to it in furtherance of this program?

Department response: The donations of money received by the
Chamber are not subject to sales tax.

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
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

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