Was tuition for 14 short Florida instructional courses, including a supervised children's field trip, subject to sales or use tax?

Plain-English summary

Tuition for all 14 courses was free from Florida sales and use tax under the facts presented.

Courses I through X and XII through XIV were educational courses or professional or personal services outside the admissions tax. Books, instructional materials, supplies, and culinary-course meals were included in the lump-sum tuition, were inconsequential to the transaction, and were not separately itemized.

Course XI, a supervised scavenger-hunt field trip for children ages 8 to 12, was not educational in the Department's view. Its tuition was still not taxable because the payment was for custodial child-care service, not an admission.

Students could use the facilities only during their scheduled instruction. Any separate charge for non-course use of the health facility or cinema would be taxable.

What this means for you

The ruling focused on what tuition bought: scheduled instruction or child-care service, with incidental property bundled into the charge. Separate access to entertainment or fitness facilities was outside that tuition treatment.

Common questions

Q: Were the 13 instructional courses taxable admissions?
A: No. The Department treated them as educational, professional, or personal-service transactions.

Q: Did included books, supplies, or culinary-course meals make tuition taxable?
A: No, because they were inconsequential, included in tuition, and not separately itemized.

Q: Why was Course XI untaxed if it was not educational?
A: It provided custodial child-care service, which the ruling said was outside the tax imposed by Part I of Chapter 212.

Q: Could students use the facilities after class without tax?
A: No. The ruling said a separate charge for non-course facility use would be taxable.

Citations and references

• Fla. Stat. § 212.08(7)(v) — services with inconsequential tangible property
• Fla. Stat. § 212.04 — admissions
• Fla. Admin. Code r. 12A-1.001(17)(a) — professional and personal services
• Fla. Admin. Code r. 12A-1.005(5)(d)2.b. — sports instruction and facility use
• Florida Department of Revenue v. Camp Universe, 273 So. 2d 148 (Fla. 1st DCA 1973) — cited child-care and instructional-services decision
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 95A-027

Original ruling text

Jun 30, 1995

Re: TAA 95A-027
Tuition Courses
Section 212.08(7)(v), F.S.
Rules 12A-1.001(17)(a), 12A-1.005(5)(d)2.b., F.A.C.

Dear :

This is a response, styled a Technical Assistance Advisement, to
your letter dated April 25, 1995, in which you asked whether
sales or use tax may be validly imposed on the revenue to be
received by XXXX (herein Taxpayer) as tuition paid by students
who enroll in 14 different classes offered by Taxpayer which you
describe on page 2, as "... educational courses...." Taxpayer
will offer these 14 courses to both younger and adult students.
You assert that the tuition received by Taxpayer is exempt under
provisions of s. 212.08(7)(v), Florida Statutes.

You ask a second question, whether such tax may be validly
imposed on a specific course (Course XI) which, as you describe
on page 7, consists of "... a well-supervised and organized
field trip for children (ages 8 to 12) and will encourage
friendship and teamwork." On page 2 of your letter you describe
this course as having the "... dual purpose of providing
educational services and custodial and supervisory services to
children." Consequently, you argue, the course is also exempt
under s. 212.08(7)(v), Florida Statutes.

You describe the sale of these courses as a new business of
Taxpayer. You state that the courses "... will cover many
diverse topics and will be formatted to encourage students to
have fun during the process of learning and acquiring
knowledge."

These courses will be offered from newly constructed facilities
providing the students a "... campus-type environment." The
facilities will include studios or amphitheaters in which

culinary arts, radio and television broadcasting, performing
arts, and art and landscaping courses will be taught. You also
state that Taxpayer will construct a "... cinema, and a facility
for health, physical fitness, and sports oriented classes."

You provide the following additional information about the
courses in general: "Each individual course will be of limited
duration and will last as little as 30 minutes or up to several
days. Tuition may include the cost of recreational oriented
activities, meals prepared as part of culinary courses, books,
instructional materials, supplies, and other items necessary to
participate in the courses. However, such items will constitute
an inconsequential element of the total tuition cost, will be
included in the tuition paid for the courses, and will not be
separately itemized."

You also alert the Department that "... course tuition will not
include such items as accommodations, admissions to theme parks,
green fees, or meals not associated with culinary courses."
Further, you add that tuition fees for physical fitness, sports
training, or theatrical instruction will not entitle the
students to use the health facility or the cinema "... in a noncourse environment." You stipulate that Taxpayer will make a
separate charge for the non-course use of the health facility or
the cinema.

In your letter you provide a detailed description of each of the
14 courses. However, the Department will paraphrase your
descriptions or will replicate, in brief, the phrasing used by
you in the descriptions.

Course I - Students will learn the elements of producing a
radio news broadcast.

Course II - A two day course in which the "... students
develop environment by using the art of landscaping and how
landscaping can play an important role in creating the feeling
of exotic places."

Course III - Students are taught the source of man's
origins according to different cultures, by examining and

discussing stories, myths, and legends.

Course IV - The subject of instruction is the preparation
and serving of a romantic meal.

Course V - Students are taught "... how to select wines and
pair such wines with food."

Course VI - The provision of instruction "... regarding
exercising and to teach students the physical, mental, and
spiritual benefits of exercising."

Course VII - Provision of instruction as to exercising,
stretching, and in the use of cardiovascular equipment and
weight machines. This course is taught in two phases involving
in the first phase, instruction in aerobic and muscle toning
activities. The second part of the instruction is connected with
certain sports activity conducted in the swimming pool.

Course VIII - In this course the students "... learn how to
develop the art of building joy in their relationships."

Course IX - This course teaches "... genealogical research
using census data, immigration, and naturalization records."

Course X - Students learn communication by verbal and nonverbal means.
Course XI - In this course groups of children engage in
scavenger hunts which are described as "... a well-supervised
and organized field trip for children...."

Course XII - This course encourages children to engage in
physical activities taught partially through aerobics and dance
steps.

Course XIII - This course is of a two day duration during
which the students create costumes and other objects in
connection with certain theater productions. Also the students
receive instruction in juggling and clowning techniques.

Course XIV - Students receive instruction in the production

of stage plays including certain elements of the production and
performance of Shakespeare.

In support of the non-taxability of the sale of these courses,
you cite s. 212.08(7)(v), F.S., and the interpretation of this
statute in Rule 12A-1.001(17)(a), F.A.C., which describes as
exempt from tax the sales of professional, insurance, or
personal services which involve the inconsequential sales of
tangible personal property for which no separate charge is made.

You further assert that Rule 12A-1.005(5)(d)2.b., F.A.C., is
similar in that it describes as not taxable any fees paid to
private clubs or membership clubs for professional instruction
in any sport when the charges are exclusively for the
instruction and which allow the use of the facilities only
during the time of the instruction.

You also cite four Technical Assistance Advisements issued by
the Department which you state affirm your position that the
tuition to be charged for these courses is not subject to tax.
You lastly cite the case of Florida Department of Revenue v.
Camp Universe, 273 So. 2d 148 (Fla.1 DCA 1973), which held that
the activities of Camp Universe were of a kind which rendered
professional and personal services which provided expert
attention and custodial supervisory and instructional services
to children.

Department response

In a telephone conversation of May 22, 1995, the Department
learned that the location of the facilities which will be
utilized in the offering of these courses is not a part of any
other theme park, but that the "campus" is a separate acreage
developed solely for the purpose of class instruction. The
Department also learned that Taxpayer will offer other classes
than the 14 described in your letter. The 14 classes are
representative of a larger number to be offered at the
Taxpayer's facility.

Further, the Department learned that as to all classes described
in the letter, there is an instructor(s) present, and that the

student's license to use the facilities which is granted as to
any one course will end upon the completion of the instructional
period. An additional charge will be made on the attendee
should use of the facilities be desired by the attendee after
the instructional period has ended. You acknowledge that any
charge for the additional use of the facilities would be subject
to tax.

As you indicate in your letter, the lump-sum tuition charge for
all of the courses you describe is given in exchange for the
instruction, use of the facilities, and any materials needed to
facilitate the instruction. No separate charge will be made for
any such element. All classes have a scheduled time for both
the commencement and for the completion of the instructional
period.

It is the Department's position that an event of the kind
described here, which is of an educational character, is not an
admission, and not taxable under s. 212.04, Florida Statutes.

Thus, the courses you describe, Course I through Course X, and
Course XII through Course XIV, being of an educational
character, are not subject to sales or use tax as an admission.

Neither are any of these courses subject to sales tax by
operation of any statute. Rather, these courses are viewed by
the Department as either those offering solely personal services
beyond the scope of the taxing statutes, or courses offering
professional or personal services wherein sales of tangible
personal property are an inconsequential part of the entire
transaction exempt from the tax as expressed in s. 212.08(7)(v),
Florida Statutes.

As to the remaining course, Course XI, it is the Department's
position that the course is not of an educational character.
However, since tuition paid by an attendee is not given as the
price of an admission, s. 212.04, F.S., has no applicability.
Rather, the Department agrees with your analysis that Course XI
is one which offers child care for which no statute requires the
imposition of the tax.

In sum, all 14 courses are free of the tax. Course I through
Course X, and Course XII through Course XIV are not taxable by
operation of s. 212.08(7)(v), F.S., and Course XI is not taxable
because it offers a service, custodial care of children, not
within the ambit of the tax levied by Part I, Chapter 212,
Florida Statutes.

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

Ctrl. No. 21046