Were resident social-membership fees exempt when homeowners paid a separate country club rather than their homeowners' association?

Subject

Social Membership Fees Paid to a Country Club

Plain-English summary

The resident social-membership fees were taxable because the country club did not qualify for Florida's mandatory homeowners' association-dues exception. The club was a separate not-for-profit corporation, not the community's homeowners' association, and it included nonresident social and golf members with voting rights.

The governing documents also did not clearly establish that every homeowner had to be a “Social Member.” The homeowners' declaration required a “Founder Membership,” but neither entity's documents explained whether that was the same as the club's social-membership class. The club's bylaws said social memberships were issued at the board's discretion.

Even if mandatory social membership could have been proven, the exemption still failed. A de facto association under the cases had to be owned and controlled entirely by unit owners, serve only those owners, and administer property for their exclusive benefit. This club served and gave voting rights to nonresidents, so it was not a homeowners' association in form or substance.

What this means for you

When a community uses separate legal entities for property governance and recreation, payments to the recreational club do not inherit the homeowners' association's tax status. The recorded declaration, bylaws, membership definitions, voting constituency, ownership, and facility rights all need to line up with the narrow exception.

Common questions

Q: Was homeowner membership in some form clearly required? Yes, the declaration required a Founder Membership, but the documents did not show that every owner had to be a Social Member whose dues were at issue.

Q: Could the club qualify as a de facto association? No. Nonresident members had voting and facility rights, so the club was not entirely owner-controlled or operated solely for owners.

Q: Did the club's lien language make the dues exempt? No. Mandatory payment and enforcement rights did not cure the failure to pay a qualifying association.

Citations and references

• Fla. Stat. §§ 212.02(1), 212.04(1) — recreational club dues as taxable admissions
• Fla. Admin. Code r. 12A-1.005(5)(d)2.d. — mandatory association-dues exception
• Fla. Stat. § 617.301(1), (2), (7) — assessments, common areas, and homeowners' associations
• Downey v. Jungle Den Villas Recreational Association, Inc., 525 So. 2d 438 (Fla. 5th DCA 1988)
• Department of Business Regulation v. Siegel, 479 So. 2d 112 (Fla. 1985)
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 98A-063

Original ruling text

SUMMARY

A Country Club (Club) incorporated as a Florida not-forprofit corporation but not as a homeowners' association
seeks a determination that social membership dues paid by
its resident Social Members to the Club are exempt from
sales tax. The Club argues that the dues are exempt
because the resident Social Members are required by the
Declaration of a separate homeowners' association to pay
the social membership dues to the Club. Dues paid to
homeowners' associations are exempt from the tax on
admissions only when the following four requirements are
met: (1) the dues must be mandatory; (2) they must be
paid to a condominium association, homeowners' association,
or cooperative association; (3) they must be required to be
paid as a condition of the ownership of real property; and
(4) the club facilities must be part of the common elements
or common areas of the real property.

Contrary to the Club's assertion, it is unclear whether
resident social members are required by the Declaration of
the homeowners' association to pay social membership dues
to the Club. Thus, the first requirement has not been
shown to be met. Yet even if the Country Club could show
that the resident Social Members are required to pay the
social membership dues, Country Club is not incorporated as
a homeowners' association. Nor does the Country Club
qualify as a de facto association. Country Club is not
entirely owned and controlled by owners of real property in
the community, but has non-resident social and golf members
with voting rights equal to those granted resident Social
Members. Accordingly, the second requirement is not met.
The social membership fees are taxable.

Aug 18, 1998

Re: Technical Assistance Advisement 98A-063
Sales and Use Tax

Social Membership Fees Paid to a Country Club
Rule 12A-1.005(5)(d)2.d., F.A.C.
XXX (Country Club)
XXX (Homeowners Association)

Dear:

This response to your letter of May 11, 1998, constitutes a
Technical Assistance Advisement (TAA) issued in accordance with
the provisions of Chapter 12-11, Florida Administrative Code
(F.A.C.), and pursuant to the authority granted by s. 213.22,
Florida Statutes (F.S.).

FACTS

Country Club is a not-for-profit Florida Corporation
incorporated under the Florida Not-for-Profit Corporation Act
codified in Chapter 617, F.S. In its letter, Country Club sets
forth the facts it believes to be relevant as follows:

The Club has five categories of membership: (1) Golf
members, (2) Non-Resident Golf members, (3) Social members,
(4) Limited Golf members and (5) Non-Resident Social
members. When an individual purchases a residence (real
property) in the community, [he or she is] required to
obtain at least a Social membership in the Club.
Additionally, when an individual purchases such real
property, the Club can not deny admission of a Social
membership status [sic] to the purchaser. Golf and Limited
Golf categories of membership are optional and can only be
acquired based upon availability. All homeowners in the
community are charged an equal, annual amount for social
membership dues. As previously mentioned, the Club does
allow for Non-Resident Social and Golf memberships at its
discretion based upon availability. No new Non-Resident
Golf memberships shall be issued and this category will
eventually be eliminated via attrition. (Letter, p. 2;
emphasis in original).

The membership voting rights are found in Article IV, page
5[,] of the By-Laws. All property owners in the [Country

Club] Community are at least Social members and[,] as such,
receive one vote[,] and... membership is canceled if such
person sells [his or her] property and moves out of the
[Country Club] Community. Furthermore, all equity members,
whether Resident or Non-Resident, who purchase an optional
Golf or limited Golf membership, maintain their single vote
status. Social equity members, whether Resident or NonResident, who have not purchased one of the optional Golf
memberships can not vote on matters which specifically
relate to golf. (Letter, p. 2; emphasis in original).

The Board of Directors of the Club adopts an annual budget
sufficient to maintain and operate the club and to fulfill
the obligations of the Club. Upon such adoption of the
annual budget, the Board of Directors sets forth the annual
dues rates for each respective membership category charged
to each member of the club. No Resident equity member may
waive or otherwise escape liability for the amounts charged
each resident of the club by non-use of the facilities or
abandonment of his or her parcel. This is achieved in
accordance with [the] Article 3.4 "Bankruptcy Clause" which
provides for, among other things, the Resident members
granting a secured lien in the form of an encumbrance on
each respective member's real property situated in the
[Country Club] Community. (Letter, p. 3).

In addition to the preceding statement of facts, Country
Club provides copies of its own Articles of Incorporation and
Bylaws, as amended, along with the Articles of Incorporation,
Bylaws, and Declaration of Covenant, Conditions and Restrictions
(Declaration) of a separate entity, Homeowners Association.

A review of Country Club's Articles of Incorporation and
Bylaws reveals that, although Country Club is a Florida Not-ForProfit corporation, it is not incorporated as a homeowners'
association. (See Country Club Articles of Incorporation and
Bylaws, Article I, Section 1.1). Country Club has several
classes of members: (1) Golf Members, (2) Non-Resident Golf
Members, (3) Limited Golf Members, (4) Social Members, (5) NonResident Social Members, and (6) Honorary Members. (Country
Club Bylaws, Article III, Sections 3.1.1-3.1.7; see also, Id. at

Article III, Sections 3.1.8(creating a "Special Foundation
Membership" class for a specific individual)). All social
members, whether regular Social Members (residents) or NonResident Social Members, are "entitled to one vote on the
election of directors and on any other matters except for those
matters affecting golf course assessments, operation, and
programs." Id. at Article IV, Section 4.1.2. Similarly, Golf
Members, Non-Resident Golf Members, and Limited Golf Members are
all "entitled to one vote on all matters at any meeting or
election." Id. at Article IV, Section 4.1.1.

The Declaration of the separate Homeowners Association
provides that a homeowner in the community may sell his or her
residential lot or condominium unit only to "an individual
designated by the owner..., subject to the designated individual
qualifying, under the criteria established for membership
admission as a Founder Member of [Country Club]." (Declaration,
Article VII, Section 5). The Declaration further provides its
"intention... to require, except as otherwise specifically set
forth herein, that one separate Founder Membership in [Country
Club] be held in conjunction with the ownership of each
Residential Lot or Condominium Unit in [the community]." Id.

Although the Declaration of Homeowners Association requires
each homeowner to be a "Founder Member" of Country Club, it is
unclear whether a "Founder Member" is, as Country Club implies
in its TAA Request, equivalent to a "Social Member" as defined
in Country Club's Articles and Bylaws. The Bylaws and Articles
of Incorporation of Homeowners Association also fail to describe
the relationship, if any, between Social Members of Country Club
and Founder Members of Country Club. (See Homeowners
Association Bylaws and Articles of Incorporation). Country
Club's Bylaws and Articles of Incorporation are similarly devoid
of any guidance regarding the relationship between these two
types of members. Furthermore, Country Club's Bylaws provide
that "Social Memberships will be issued at the discretion of the
Board [of directors]." Contrary to Country Club's assertion,
then, no controlling document of either Country Club or
Homeowners Association requires all homeowners in the community
to be "at least [s]ocial members." (Letter, p. 2; emphasis
omitted).

Pursuant to the Declaration of Homeowners' Association, all
homeowners are clearly required to be members of Homeowners
Association. (Declaration, Article III, Section 1). A
homeowner's failure to pay assessments imposed by Homeowners
Association subjects the homeowner's property to a lien. Id. at
Article VII, Section 7. The Declaration does not impose a lien
on a homeowner's property for the homeowner's failure to pay
dues and fees imposed by Country Club. Nevertheless, Country
Club's Bylaws, provide that:

all resident members, as a condition precedent to
membership in the Club, shall grant the Club a lien for any
and all charges, dues, assessments, or any other amount...
which they may owe the Club at the time bankruptcy in their
name or affecting such property is adjudicated. Said lien
shall be an encumbrance on their real property situated in
[the community].... Further, all members waive any
provision of the Florida Homestead Act with regard to the
enforcement of the lien so created." (Country Club Bylaws,
Article III, Section 3.4).

Finally, all dues, fees, and assessments imposed upon
members of Country Club are due and payable when the member
receives the billing. Id. at Article V, Section 5.5. If these
charges become delinquent and remain unpaid after Country Club
sends the member a notice of delinquency, Country Club may file
an action in a court of law to recover the amounts due. Id.

ISSUE

Are social membership fees paid by resident Social Members
of Country Club, a Florida Not-For-Profit Corporation that is
not incorporated as a condominium association, homeowner's
association, or a cooperative association, subject to sales tax?

TAXPAYER'S POSITION

Country Club takes the position summarized below:

[T]he mandatory Resident Social membership dues are

specifically exempt from sales tax under Florida Department
of Revenue Rule 12A-1.005 because (1) the fee is mandatory,
(2) the fee is paid to a qualifying association, (3) the
fee is required to be paid as a condition of ownership and
(4) the club facilities are part of the common elements or
common areas of the real property. Social membership
status in the Club is required when purchasing real
property in the... community. We agree that the
incremental golf membership dues are subject to sales tax
based upon their optional nature with regard to occupancy
of real property within the... community for Resident
members and we also agree that all dues charged to NonResident Equity members are taxable since no real property
is obtained within the community that can be liened.
(Letter, p. 2; emphasis in original).

In support of its position, Country Club argues as follows:

Rule 12A-1.005(5)(d)2.d., F.A.C., states that a fee is not
a taxable admission where such fee is:

1.[ ]mandatory;
2.[ ]paid to a[n] association;
3.[ ]required to be paid as a condition of ownership; and
4.[ ]the club facilities are part of the common elements or
common areas of the real property (Letter, p. 3)
...
1.[ ]Are the fees mandatory? Yes. See Articles 3, 5.2.
and 5.5 of the ByLaws entitled "MEMBERSHIP", "ANNUAL DUES"
and "PAYMENT TERMS" which collectively state that all
residential lot or condominium unit owners must be []
member[s] of the Club, dues are established annually based
upon the member approved budget and all legal remedies,
including enforcement of the lien on real property, are
available for collection purposes, respectively. (Letter,
p. 3-4).
2.[ ]Are the fees paid to a[n] "association"? Yes. Section
617.301(7), F.S., states in part: "Homeowners' Association"
or "Association" means a Florida Corporation responsible
for the operation of a community.... in which membership is
a mandatory condition of parcel ownership, and which is

authorized to impose assessments that, if unpaid, may
become a lien on the parcel. In Downey v. Jungle Den
Villas Recreational Assn.[,] Inc., 525 So.2d 438 (Fla. 5th
DCA 1988), the Fifth District Court of Appeal held that a
recreational association (or Club) which was organized to
provide an entity for ownership, operation, and management
of recreational facilities for the use of all present and
future unit owners was, in substance and in function,
acting as a condominium association. In other words, the
club was deemed a "defacto" association even though the
recreation association/club held title to property in its
own name. Since all members who purchase real property in
the [Country Club] community must be... member[s] of both
the... Homeowner[s] Association and... Country Club and the
Club is no more than a separate "recreational association",
the "Club" is in substance and in function an "Association"
as supported by the finding of the cited case. We have
attached as Exhibit D a copy of the... Declaration of
Covenants [of the Homeowner's Association] as reference.
This document intrinsically governs the entire... Community
including the Club (recreational association) entity.
(Letter, p. 4; emphasis in original).
3.[ ]Are the fees required to be paid as a condition of
ownership? Yes. See also answer to question #1. See
Article II - "MEMBERSHIP - No residential lot or
condominium unit shall be owned by or conveyed to any
individual or individuals or to any entity unless an
individual designated by such owner or proposed owner is a
member of... Country Club...." (Letter, p. 4).

Are the club facilities, and particularly the social
membership related recreational facilities, part of the
common elements or common areas of the real property? Yes.
In Downey v. Jungle Den Villas Recreational Assn.[,] Inc.,
525 So.2d 438 (Fla. 5th DCA 1988), the Fifth District Court
of Appeal also found that the real property to be used for
the recreation facilities, the legal title of which was in
the entity created to own, operate and manage the
recreation facilities, was actually a "common element" or
"an appurtenance to the association". Therefore, the nonoptional social related recreational amenities such as the

restaurant, fitness, clubhouse and other social membership
accessible related facilities may be viewed as part of the
common elements or common areas of the... Homeowners
Association in accordance with the facts of the cited case.
(Letter, p. 4).

RELEVANT STATUTORY AND ADMINISTRATIVE AUTHORITY

Section 212.04(1), F.S., sets forth the legislative intent
regarding admissions, and provides in pertinent part:

(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.
(b) For the exercise of such privilege, a tax is levied at
the rate of 6 percent of sales price, or the actual value
received from such admissions, which 6 percent shall be
added to and collected with all such admissions from the
purchaser thereof, and such tax shall be paid for the
exercise of the privilege as defined in the preceding
paragraph....

Section 212.02(1), F.S., in turn, provides in part that the
term "admissions":

... means and includes... 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. (Emphasis supplied).

Rule 12A-1.005(5)(d)2.d., F.A.C., interprets the statutes
imposing the tax on admissions and, with regard to mandatory
dues paid to condominium associations, homeowners' associations,
or cooperative associations, provides in part:

2. The following payments made to private clubs or
   membership clubs are not "fees" which are subject to tax on
   admissions....

d. Mandatory dues and fees paid to a condominium
association, homeowners' association, or cooperative
association when they are required to be paid as a
condition of ownership or occupancy of real property and
the club facilities are part of the common elements or
common areas of the real property. (Emphasis supplied).

Section 617.301(2), F.S., defines "common area" as:

... [A]ll real property within a community which is owned
or leased by an association or dedicated for use or
maintenance by the association or its members, including,
regardless of whether title has been conveyed to the
association:
(a) Real property the use of which is dedicated to the
association or its members by a recorded plat; or
(b) Real property committed by a declaration of covenants
to be leased or conveyed to the association.

Section 617.301(7), F.S., provides, in relevant part, that
a "homeowners' association" is:

... [A] Florida corporation responsible for the operation
of a community in which the voting membership is made up of
parcel owners or their agents, or a combination thereof,
and in which membership is a mandatory condition of parcel
ownership, and which is authorized to impose assessments
that, if unpaid, may become a lien on the parcel....
(emphasis supplied).

Section 617.301(1), F.S., defines an "assessment" as:

... [A] sum or sums of money payable to the association, to
the developer or other owner of common areas, or to
recreational facilities and other properties serving the
parcels by the owners of one or more parcels as authorized
in the governing documents, which if not paid by the owner
of a parcel, can result in a lien against the parcel.

ANALYSIS

Under Florida law, admissions are taxable unless
specifically exempt. Section 212.04(1), F.S. Moreover, dues
and fees paid to private clubs providing recreational or
physical fitness facilities are taxable admissions. Sections
212.02(1), F.S., and 212.04, F.S. A narrow exception from this
general rule is provided for dues paid to condominium
associations, homeowners' associations, and cooperative
associations. Rule 12A-1.005(5)(d)2.d., F.A.C. The exception
applies only when all of the following four requirements are
met: (1) the dues must be mandatory; (2) they must be paid to a
condominium association, homeowners' association, or cooperative
association; (3) they must be required to be paid as a condition
of the ownership of real property; and (4) the club facilities
must be part of the common elements or common areas of the real
property.

Country Club's Bylaws require all members to pay dues and
fees to the association. (Country Club Bylaws, Article V,
Section 5.1, 5.2). Unpaid membership fees become a continuing
lien against a homeowner's dwelling unit. Id. at Article III,
Section 3.4. Additionally, Country Club is entitled to file an
action in a court of law to recover delinquent dues and fees.
Id. at Article V, Section 5.5. Therefore, it is evident that the
dues are mandatory for all homeowners who are Golf Members or
Social Members. Id. at Article III, Sections 3.1.1-3.1.7
(setting forth the classes of members, and providing two
classes, Golf Members and Social Members, that appear to be
reserved for residents of the community).

Even so, no controlling document of either entity requires
all homeowners in the community to be Social Members. (See
Declaration, Article VII, Section 5 (providing that "one
separate Founder Membership in [Country Club] [must] be held in
conjunction with the ownership of each Residential Lot or
Condominium Unit in [the community]"); Country Club Bylaws and
Articles of Incorporation (failing to explain the relationship,
if any, between Social Members and Founder Members.)) Country
Club is correct in stating that "Article[] 3... of the Bylaws...
state[s] that all residential lot or condominium owners must be
[] members of the Club." (Letter, p. 3). What class of members
the homeowners must join, however, is unclear.

It appears that the homeowners may be either Golf Members
or Social Members. (See Country Club Bylaws, Article III, flush
language (stating that "[t]here may be a number of Resident
Social Members equal to the difference between the actual number
of Golf Members (Resident and Limited) and the number 634")).
Because there is no provision that all homeowners must be Social
Members, the dues imposed upon Social Members by Country Club
have not been shown to be mandatory for all homeowners in the
community.

Yet there is an even more basic reason that Country Club's
argument that the fees are exempt under Rule 12A1.005(5)(d)2.d., F.A.C., must fail. Even assuming Country Club
could produce documentation proving that each homeowner was
required, as a result of owning real property in the community,
to be a Social Member, the social membership fees would not be
exempt from tax because Country Club clearly fails to meet the
second requirement of Rule 12A-1.005(5)(d)2.d., F.A.C. This
second requirement is that the dues must be paid to a
condominium association, homeowners' association, or cooperative
association.(FN 1)

Although Homeowners Association is incorporated as a
homeowners' association, Country Club is not. Section
617.301(7), F.S., defines a "homeowners' association" as: "... a
Florida corporation responsible for the operation of a community
in which the voting membership is made up of parcel owners or
their agents, or a combination thereof, and in which membership
is a mandatory condition of parcel ownership, and which is
authorized to impose assessments that, if unpaid, may become a
lien on the parcel...." (emphasis added).

Not only did Country Club fail to incorporate as a
homeowners' association, but Country Club's voting membership is
made up of a number of non-resident members, who are clearly
persons other than "parcel owners or their agents, or a
combination thereof." (See Country Club Bylaws, Article IV,
Section 4.1.2 (establishing that all social members, whether
regular Social Members (residents) or Non-Resident Social
Members, are "entitled to one vote on the election of directors

and on any other matters except for those matters affecting golf
course assessments, operation, and programs.") and Article IV,
Section 4.1.1 (providing that Golf Members, Non-Resident Golf
Members, and Limited Golf Members are all "entitled to one vote
on all matters at any meeting or election."). Simply put,
Country Club is not a homeowners' association within the meaning
of Section 617.301, F.S.

Nevertheless, Country Club relies on Downey v. Jungle Den
Villas, 525 So.2d 438 (Fla. 5th DCA 1988), for the proposition
that it is a "de[ ]facto association." In Downey, the Fifth
District Court of Appeal considered whether a recreation
association created by several condominium associations "to
provide an entity for the ownership, operation, and management
of recreation facilities for the use of all present and future
condominium unit owners," should be treated "as an entirely
independent corporation not for profit or as a de facto
condominium association subject to Chapter 718, Florida
Statutes." Id. at 439-40. Pursuant to Section 718.110(4), F.S.
(1985), a condominium association could not make a material
alteration to a condominium without unanimous approval of all
unit owners. Id. at 440. The recreation association was
attempting to build a swimming pool, and to assess each owner a
$450.00 charge for its construction, with the approval of a slim
majority of unit owners. Id. Because the recreation association
in Downey held legal title to the property "for the use and
benefit of unit owners of all phases in Jungle Den Villas," the
court held it was a de facto condominium association. Id. The
association was thus required to obtain the unanimous consent of
the unit owners before building the swimming pool or imposing an
assessment for it. Id. at 441.

In determining that the master recreation association
should be treated as a condominium association, the court
applied the "constituency test." According to the court, the
essential inquiry of the constituency test is whether the
membership of the recreation association is composed "`only of
condominium unit owners, and only condominium unit owners have
rights in the property administered by the Association...'" Id.
at 440. (quoting Siegel v. Division of Florida Land Sales and
Condominiums, Department of Business Regulation, 453 So.2d 414,

417 (Fla. 3d DCA 1984), quashed, 479 So.2d 112 (Fla. 1985).)
The court's determination that the recreation association was a
de facto condominium association hinged upon the fact that: (1)
the recreation association was "entirely owned and controlled by
the unit owners," (2) the "property titled in the recreation
association's name... [was] expressly held for the use and
benefit of the condominium unit owners and no one else," (3) the
"recreation association exist[ed] solely to serve the[] unit
owners," and (4) the members of the recreation association were
"[o]nly unit owners, and never non-unit owners." Id. at 441
(emphasis supplied).

In the instant case, on the other hand, Country Club is not
entirely owned and controlled by the unit owners. While Country
Club has resident social members with voting rights, Country
Club also has non-resident social and golf members with voting
rights. Nor is the property titled in Country Club's name held
solely for the use and benefit of the unit members and "no one
else." Again, Country Club's membership includes non-resident
social and golf members with the same rights as resident social
and golf members. Country Club exists to serve all of its
members, not just homeowners and unit owners.

In Dept. of Business Regulation, Division of Land Sales v.
Siegel, 479 So.2d 112 (Fla. 1985), the Florida Supreme Court
found that a homeowners' association was not a condominium
association under the provisions of Chapter 718, F.S., because
it was "unrefuted that the membership of th[e] homeowners'
association might eventually be comprised of non-condominium
dwellers." (emphasis supplied). Both Downey and Siegel
undermine Country Club's argument that it is a de facto
association. Country Club already has nonresident members with
voting rights. Accordingly, Country Club is not a homeowners'
association.

State agencies must adhere to the law established by the
legislature in the Florida Statutes; agencies are not permitted
to enlarge, modify, or contravene statutory provisions. See
Department of Business Regulation v. Salvation Ltd., 452 So.2d
65 (Fla. 1st DCA 1984); Department of Health and Rehabilitative
Services v. McTigue, 387 So.2d 454 (Fla. 1st DCA 1980); 4245

Corp. v. Division of Beverage, 371 So.2d 1032 (Fla. 1st DCA
1978); Florida Growers Coop, Transport v. Department of Revenue,
273 So.2d 142 (Fla. 1st DCA 1973), cert. denied, 279 So.2d 33
(Fla. 1973). The Florida Department of Revenue is not empowered
to create additional varieties of homeowners' associations.

Country Club clearly fails to meet the requirement of Rule
12A-1.005(5)(d)2.d., F.A.C., that it be a homeowners'
association. Consequently, there is no need to discuss the other
requirements set forth in the rule, and the social membership
fees are subject to tax.

DETERMINATION

Because Country Club is not a homeowners' association under
the Florida Statutes, the social membership fees are subject to
tax.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., and 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 from that
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.

Should you have any questions concerning this Advisement,
please do not hesitate to contact me.

Sincerely,

Rebecca Newton-Clarke
Attorney
Technical Assistance and
Dispute Resolution
(850) 488-9669

RNC/
Control No. 34314

Footnote 1: Country Club does not argue that it qualifies as a
chapter 718, F.S., condominium association or as a Chapter 719,
F.S., cooperative association. Nor do the provisions of Chapter
718 or 719, F.S., apply to Country Club. Thus, this TAA will
not discuss the requirements of these chapters.