Were cruise tickets taxable admissions when passengers could disembark at a stop before returning?

Subject

Admissions Tax on Cruises With and Without Stopovers

Plain-English summary

Cruise tickets were exempt from Florida sales tax as transportation when passengers could disembark at a location other than the starting point before the vessel returned. The company's sightseeing, shopping, dining, and dinner cruises included destination stopovers where passengers went ashore.

The opposite rule applied when passengers stayed aboard and simply returned to the origination point. Those charges were taxable admissions for sightseeing, dinner, recreation, or similar activity. The company's occasional private cruise with an onboard function and no disembarkation stop fell within that taxable pattern.

The Department separately warned that meals or tangible personal property sold while the vessel was dockside or in Florida waters were taxable transactions, even where the transportation charge itself was exempt.

What this means for you

The ticket's label—cruise, charter, sightseeing, or dinner—did not control. The practical route mattered: an actual stop where passengers could leave the vessel made the charge transportation under this ruling.

A temporary docking without passenger disembarkation would not satisfy the stated test. Operators also had to analyze onboard or dockside meals and merchandise separately.

Common questions

Q: Were cruises with shopping or dining stopovers taxable? No. The ruling treated their ticket charges as exempt transportation because passengers could disembark away from the starting point.

Q: What about a cruise that sailed and returned without a stop? Its charge was a taxable admission.

Q: Was a private onboard function taxable? Yes, under the company's described no-disembarkation private cruise.

Q: Did the ruling exempt every meal connected with an exempt cruise? No. It said meals or tangible goods sold dockside or in Florida waters were taxable. It did not separately analyze every bundled dinner component in the stated ticket facts.

Q: Did passengers actually have to leave the vessel? The rule focused on whether they could disembark at another point; the company's qualifying cruises gave them stopovers ashore.

Citations and references

• Fla. Stat. § 212.02(1) — definition of admissions
• Fla. Stat. § 212.04(1)(a) — taxable privilege of selling admissions
• Fla. Admin. Code r. 12A-1.005(4)(o), (p) — cruises, sightseeing, and transportation stopovers
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 97A-087

Original ruling text

Dec 09, 1997

Re: Technical Assistance Advisement 97A-087
Sales and Use Tax - Admissions/Cruises
Sections: 212.02, 212.04, F.S.
Rule: 12A-1.005, F.A.C.

Dear :

This is a response styled a Technical Assistance Advisement to
your letter dated June 24, 1997, concerning the above referenced
matter as applied to the XXX ("Company"). Your correspondence
has been carefully examined and the Department finds it to be in
compliance with the criteria set forth in Chapter 12-11, F.A.C.
This response to your request constitutes a TAA and is issued to
you under the authority of s. 213.22, F.S.

STATED FACTS

You provide the following facts:

[Company] operates daily and evening dinner cruises that
transport passengers to various locations, where they
disembark for a period up to two (2) hours and then
transport them back to the original point of embarkation.
We offer 10:00 A.M. and 2:00 P.M. cruises for $10.95, that
drop off passengers at a tropical location where they
disembark to shop for souvenirs, purchase food, and see
alligators, birds and monkeys. We also offer a daytime
cruise for $14.95 that delivers passengers to another city
for a 2 1/2 hour stopover for shopping and eating. In the
evening we offer our Dinner Cruise for $23.95 that cruises
to a tropical island-type restaurant where passengers
disembark for two (2) hours for dinner and a show ashore
and then return to the original point of embarkation. The
dinner is included.

On rare occasions we will charter the boat for a private
cruise where the passengers just cruise and have a function

on board. In those instances, I assume we would be
required to add sales tax since the passengers are not
disembarking.

The transactions are made on a daily basis when customers
purchase tickets of admission at our Box Office. There are
not contracts as this is a walk up business where most
people pay on the day they go on the cruise. A brochure is
enclosed and a sample of tickets that are exchanged for
admission fee.

REQUESTED ADVISEMENT

You ask, if the vessel docks and passengers can disembark,
whether the charge is considered to be for transportation and
exempt from tax.

LAW AND ANALYSIS

Section 212.02(1), F.S., defines the term "admissions" as
follows:

(1) The term "admissions" means and includes 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 or for the privilege of entering or
staying in any place of amusement, sport, or recreation,
including, but not limited to, theaters, outdoor theaters,
shows, exhibitions, games, races, or any place where charge
is made by way of sale of tickets, gate charges, seat
charges, box charges, season pass charges, cover charges,
greens fees, participation fees, entrance fees, or other
fees or receipts of anything of value measured on an
admission or entrance or length of stay or seat box
accommodations in any place where there is any exhibition,
amusement, sport, or recreation, and all dues and fees paid
to private clubs and membership clubs providing
recreational or physical fitness facilities, including, but
not limited to, golf, tennis, swimming, yachting, boating,
athletic, exercise, and fitness facilities, except physical
fitness facilities owned or operated by any hospital

licensed under chapter 395.

Section 212.04(1)(a), F.S., provides the legislative intent
as follows:

(1)(a) It is hereby declared to be the legislative intent
that every person is exercising a taxable privilege who
sells or receives anything of value by way of admissions.

Rule 12A-1.005(4)(o) and (p), F.A.C., clarifies the
taxability of charges for cruises to nowhere and charges for
transportation services made by other type vessels. This rule
provides:

(o) When the owner of a boat or vessel operated as a
"head-boat" or "party boat" supplies the crew, which
remains under the control and direction of the owner, and
makes a charge measured on an admission or entrance or
length of stay aboard the vessel for the privilege of
participating in sightseeing, dinner cruises, sport,
recreation, or similar activities including fishing, the
charge is taxable as an admission.

1. Effective July 1, 1991, charges made by foreign
   registered vessels carrying passengers to international
   waters are exempt from the tax on admissions.

2. Effective July 1, 1992, charges made by foreign
   registered vessels carrying passengers to international
   waters where passengers cannot disembark from the vessel at
   points other than the origination point (cruises to
   nowhere) are taxable. If the vessel docks, and passengers
   can disembark, the charge is considered to be for
   transportation and is exempt from tax.

(p) Charges measured on an admission or entrance or length
of stay for rides on helicopters, sightseeing trolley cars,
sightseeing buses or trains, or any sightseeing or
amusement ride where the participant is normally returned
to the origination point are taxable. This does not apply
to charter or regularly scheduled aircraft, bus, taxi,

trolley, or train travel where the passengers may disembark
for shopping, dining, or other activities at points other
than the origination point.

RESPONSE

The sales tax imposed by Chapter 212, F.S., does not extend
to charges made for the transportation of persons. Charges made
by vessels from which passengers can disembark at points other
than the origination point are considered to be transportation
charges and exempt from sales tax. Charges made where
passengers cannot disembark from the vessel at points other than
the origination point are considered to be for an admission and
are taxable. However, if meals or items of tangible personal
property are sold while the vessel is dockside or in Florida
waters such transactions would be 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 confidential
information, we request you notify the undersigned in writing
within 15 days of any deletions you wish made to the request or
this response.

Sincerely,

Janet Cumbie

Tax Law Specialist
Technical Assistance & Dispute Resolution
(850)922-4847

JCC\
Control No: 29768