Were dog-show registration, puppy-match, parking, and instructional class fees taxable in Florida?

Subject

Tax on Dog-Show Entry and Training Fees

Plain-English summary

The club's dog-registration fees for the reviewed all-breed show and puppy match were taxable participation charges because spectators were not charged a taxable admission. Florida's rule exempted participation fees only when spectators paid a taxable admission to the activity.

At the June venue, the facility's separate vehicle charge was a parking fee, not a spectator admission. People arriving on foot or bicycle could watch for free, and a driver who parked without attending still paid the vehicle fee. With no spectator admission, the club's competition entry fee was taxable.

The puppy match had no parking or spectator charge, so its dog-registration fee was also taxable. The Department rejected the argument that only a dog was admitted: the dog and owner or handler competed as a team.

Strictly instructional conformation and obedience class fees were outside Chapter 212 and not taxable. The Department could not conclusively decide the November venue because the club could not say whether nonattending parkers paid or walk-in spectators entered free.

What this means for you

The tax result depended on what each fee purchased. Calling a vehicle charge an admission did not make it one when it functioned as parking, and calling a competition payment a dog registration did not prevent it from being a taxable participation fee.

Event organizers should document spectator pricing, parking practices, participant rights, and whether an activity is competition or instruction.

Common questions

Q: Why was the June dog-show entry fee taxable? Spectators paid no taxable admission, so the participant registration fell within the taxable-fee rule.

Q: Was the vehicle charge treated as an admission? No. It was parking because walk-in spectators were free and nonattending drivers still paid.

Q: Were puppy-match fees taxable even though the event was for training? Yes. The match remained a competition activity with a participant fee and no spectator admission.

Q: Were ordinary conformation and obedience classes taxable? No. The ruling treated the strictly instructional classes as outside the admissions tax.

Q: What was the answer for the November show? Unresolved on the available facts. The fee would be taxable under the same reasoning if spectators could enter free or nonattending drivers still paid the vehicle charge.

Citations and references

• Fla. Stat. § 212.04(1)(a) — taxable privilege of selling or receiving value by way of admissions
• Fla. Stat. § 212.02(1) — definition of admission
• Fla. Admin. Code r. 12A-1.005(4)(k) — participation fees where spectators do or do not pay taxable admission
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 98A-001

Original ruling text

SUMMARY

The Taxpayer was conducting dog show competition events.
The Taxpayer was leasing the premises for the purpose of
conducting the dog show events. The Lessor collected a
separate fee for each motor vehicle that entered upon the
premises, while the Taxpayer collected a separate
registration fee for each dog that was entered in the dog
show competition events.

The Taxpayer sought advisement on whether the dog
registration fees it charged for each dog entered into the
dog show competition events were subject to tax. It was
determined that two separate and distinct fees were being
imposed at the dog show events. The first fee was charged
by the Lessor for the right to park on the premises. This
fee was deemed to be for parking, not as an admission
charge to spectators, due to the following: 1) individuals
arriving by foot or by bicycle are not charged a fee to be
spectators at the dog show; and 2) operators of automobiles
who park at the Center and do not attend the dog show but
merely park are charged a fee by the Lessor. The second
fee charged by the Taxpayer was deemed to be for the
privilege of entering or engaging in an activity (dog
show). Since no admission charge is made to spectators,
the participation or entrance fee charged by the Taxpayer
was determined to be subject to tax.

Jan 15, 1998

Re: Technical Assistance Advisement 98A-001
Sales and Use Tax - Dog Show Registration Fees
Sections: 212.02, 212.04, F.S.
Rule: 12A-1.005, F.A.C.
Petitioner: XXX (herein "Club")
FEI: XXX

Dear :

This letter is a response to your petition dated September
22, 1997, for the Department's issuance of a Technical
Assistance Advisement ("TAA") concerning the above referenced
party and matter. Your petition has been carefully examined and
the Department finds it to be in compliance with the requisite
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.

DISCUSSION OF FACTS

You provided the following information either in your
letters or in our telephone conversations: On an annual basis,
the Club holds two all-breed AKC dog competition shows, one
match show competition (primarily for puppies), and various
conformation and obedience training classes for dogs. The two
AKC all-breed dog show competitions are held in June (the "June
Show"), and November (the "November Show"), of each year. The
June Show is held at the XXX ("Center"), while the November Show
is held at the XXX ("Grounds"), which is privately owned by the
XXX. The match show and the conformation and obedience training
classes are held at XXX ("Park"), which is owned by XXX.

The dogs and their owners and/or handlers travel from show
to show throughout the country. They come by automobile, truck,
and recreational vehicle. At the June Show, the Center is
leased by the Club for the purpose of conducting the dog show
event. The Center collects a separate fee for each motor
vehicle that enters upon the Center premises, while the Club
collects a separate registration fee for each dog that is
entered in the dog show competition.

You asserted that payment of the motor vehicle fee to the
Center also entitles each occupant of the motor vehicle to be
admitted to the facility and the dog show, without the payment
of any additional charge or fee. You stated that a pedestrian
or an individual on a bicycle, who is a spectator, could be
admitted to the dog show event conducted at the Center without
paying any fee to the Center or the Club. You also stated that
an operator of a motor vehicle who parked at the Center during

the dog show event and did not elect to attend the event would
still be required to pay a fee to the Center for the right to
park there.

At the November Show, the Club receives monies from dog
registration fees. The Club also receives a fee on the basis of
each motor vehicle that enters upon the facility at the Grounds.
You asserted that payment of this fee also entities each
occupant of the motor vehicle to be admitted to the facility and
the dog show, without the payment of any additional charge or
fee. When asked whether a pedestrian or an individual on a
bicycle acting as a spectator could be admitted to a dog show
event conducted at the Grounds for no fee, you stated that this
has never occurred and therefore you could not answer this, even
hypothetically. You stated that the Grounds were located so far
out that getting to the Grounds on bicycle or by foot would
nearly be impossible. Also, when asked if an operator of an
automobile would be charged a fee to park at the Grounds during
the dog show event even if he did not elect to attend the event,
you stated that you could not answer this, even hypothetically.
You stated that the Club had not encountered such a situation.

Typically, the Club's only source of receipts from the
match show competition (for puppies) is the dog registration
fees. The sole source of revenue from the dog conformation and
obedience classes is the fees paid for registering the dogs in
the instructional sessions. You stated that the two AKC allbreed competitions held in June and November of each year and
the match show competitions are substantially identical. The
differences are: 1) commands to the dog at the AKC shows may be
given by either the owner or the dog's handler, who is generally
a paid professional paid by the owner. In contrast, only the
owners, no handlers, can give commands to a dog at the match
competition; 2) the match competition is for puppies under the
age of eighteen months, with approximately seventy-five percent
being less than one year old; 3) the match shows are "fun
matches" held for training purposes only. Puppies train at the
match shows to prepare for later competition at the AKC shows.
Puppies do not compete at the match shows against other dogs for
AKC championship points. While the puppies are scored against a
table based on their skills, they do not compete with other

dogs, and are only awarded a ribbon, not official AKC points.
The match show is merely training for the "big time" when the
dog can compete against other dogs at an AKC show; and 4) the
only imposition paid at the match competition is the dog
registration fee. There is no parking fee or other charge.

REQUESTED ADVISEMENT

You seek advisement on whether the following fees as
described above are subject to sales and use tax: 1) Fees for
all-breed AKC dog competition shows, 2) Fees for match show
competition, and 3) Fees for conformation and obedience training
classes.

Discussion, Analysis, and Conclusion of Law

Section 212.04(1)(a), F.S, provides:

(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.

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

(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....

The Department has promulgated Rule 12A-1.005, F.A.C.,
which interprets Section 212.04, F.S., and provides in part:

(4) TAXABLE ADMISSIONS, PARTICIPATION FEES, ETC.
(k) Charges made for the privilege of entering or engaging
in any kind of activity for which a taxable admission
charge is made to spectators are exempt. When no admission
charge is made to spectators, such participation or
entrance fees are taxable.... (Emphasis supplied)

Based on the facts presented, it appears that two separate

and distinct fees are being charged at the all-breed AKC dog
competition show which occurs at the Center. The first fee is
charged by the Center for the right to park at the Center. This
fee is deemed to be for parking, not as an admission charge to
spectators, due to the following: 1) individuals arriving by
foot or by bicycle are not charged a fee to be spectators at the
dog show; and 2) operators of automobiles who park at the Center
and do not attend the dog show but merely park are charged a fee
by the Center. The second fee is charged by the Club for the
privilege of entering or engaging in an activity (dog show).
Since no admission charge is made to spectators, the
participation or entrance fee charged by the Club is taxable.

It is difficult to make a determination on the fees charged
for the dog show competition conducted at the Grounds with the
information available. If individuals arriving by foot or by
bicycle are not charged a fee to be spectators at the dog show
or operators of automobiles who park at the Grounds and do not
attend the dog show but merely park are charged a fee, the
participation or entrance fee charged by the Club would be
subject to tax, as discussed above for the show conducted at the
Center.

You stated that s. 212.04, F.S., provides that an admission
is taxable only when a person or vehicle is admitted to a place
of amusement, sport or recreation. You contend that in the
instant case a dog, not classified as a person or vehicle, is
being charged for admission to a place of amusement, sport, or
recreation. However, it is our understanding that the dog cannot
compete without the presence of a person (either its owner or
handler). The dog and its owner or handler are a team which
cannot enter or engage in any kind of activity for which the fee
is required without the other. Therefore, the fee is charged
for admitting a person and a dog to a place of amusement, sport
or recreation and would be taxable if there is no taxable
admission charge made to spectators.

From the information presented, it appears that there is
one charge made for entrance in the match competition and there
is no spectator fee. The fees for the match show competition
would be taxable as discussed above regarding dog show

competitions conducted at the Center. Since no admission fee is
charged to spectators, the participation or entrance fee charged
would be subject to tax.

As for the conformation and the obedience training classes,
it is my understanding that these classes are strictly
instructional. Therefore, the fees for the conformation and
obedience classes would be beyond the purview of Chapter 212,
F.S., and consequently not subject to 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 upon 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 from that
which is 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 that 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 this response.

Sincerely,

Leigh L. Ceci
Tax Law Specialist

Enclosure
Control #30993