Was a membership that merely licensed the taxpayer to enjoy a privilege in a specific area subject to Florida intangible personal property tax?

Plain-English summary

The membership was not subject to Florida intangible personal property tax.

The Department described the membership as merely a license to enjoy a privilege in a specific area. It contrasted that arrangement with a certificate where membership in an organization and ownership of a share of stock are separable, which would be taxable.

What this means for you

The tax treatment depended on the legal character of the membership rights, not just the document's label as a certificate.

Common questions

Q: Was this membership taxable?
A: No.

Q: What kind of membership did the ruling say would be taxable? A: A certificate where organizational membership and ownership of a share of stock were separable.

Q: What was this taxpayer's membership instead? A: A license to enjoy a privilege in a specific area.

Citations and references

• Fla. Stat. § 199.012 — intangible personal property
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 95C2-006

Original ruling text

Feb 08, 1995

Re: Technical Assistance Advisement No. 95(C)2-006 Intangible Personal Property Tax Certificate of Membership XXX (Membership) XXX (Taxpayer)

Dear :

This is in response to your recent request for a technical assistance advisement.

Issue

Is the Taxpayer's Membership subject to Florida intangible personal property tax under the provisions of s. 199.012, F.S.?

Discussion and Law

A certificate of membership where the membership in an organization and the ownership of a share of stock are separable would be subject to Florida intangible personal property tax. The Membership in question is merely a license for the Taxpayer to enjoy a certain privilege in a specific area.

Conclusion

Based upon statutory provisions and information furnished in your request, the Taxpayer's Membership would not be subject to intangible personal property tax in Florida.

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,

Nadine C. Posey
Tax Audit Specialist III
Technical Assistance

NCP/mh